Pensions alert: DWP admits nearly a MILLION eligible retirees missing out on crucial £4,300 boost

Joe Sledge
Thu, 16 Apr 2026 18:03:33 +0000

Nearly one million pensioner households across Britain are failing to claim money they are entitled to, with the Department for Work and Pensions (DWP) estimating that up to £2.5billion in Pension Credit goes uncollected each year.

Around 910,000 families who qualify for the benefit are not applying, leaving them without an average annual payment of £4,300.

Ministers are now increasing efforts to encourage more people over state pension age to access the support in the coming months as pressure on household finances continues.

Work and Pensions Secretary Pat McFadden said: "I know global shocks, and the effects they have on our living costs, will be increasing anxiety for many households."

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He added: "This Government will always protect our pensioners."

Pension Credit provides a top-up for single people receiving the new state pension whose weekly income is below £238, while couples must have a combined income under £363.25 to qualify.

An increase of 4.8 per cent this year will bring the average annual value of the benefit to around £4,300.

Claiming Pension Credit can also unlock access to additional support, including a free TV licence worth £180 for those aged 75 and over, alongside help with housing costs and council tax.

Between 2026 and 2027, the Government is expected to spend £6billion on state pensions and pensioner benefits, with the full rate of the new state pension rising by up to £575.

David Cooper, director at retirement specialist Just Group, said: "The figures show the huge sums of Pension Credit that are going unclaimed by many of the nation's poorest pensioners, who are missing out on thousands of pounds a year of valuable extra income."

He added: "The benefits system is complicated and anyone feeling the squeeze on their finances should check their entitlement to benefits."

Mr Cooper said this includes people who have savings or own their own homes but assume they are not eligible.

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Research from the firm found four in ten pensioner homeowners have never checked whether they qualify for any state benefits beyond their basic pension.

That proportion is more than double the share of renters who have not checked their eligibility.

Officials have also sought to address common misconceptions that discourage applications, including the belief that home ownership automatically disqualifies claimants.

Nearly half of those currently receiving Pension Credit are homeowners, according to the DWP.

Savings do not necessarily prevent eligibility either, with the first £10,000 ignored during the assessment process.

People who have previously been turned down are also being encouraged to reapply, as changes in circumstances could alter their eligibility.

Across Great Britain, around 1.4 million people currently receive Pension Credit, including more than 125,000 in Scotland.

Eligibility can be checked online through GOV.UK or by calling the Pension Credit helpline, which operates Monday to Friday between 8am and 6pm.