British pensioners are "missing out on £2,600 a year" by not claiming vital support from the Department for Work and Pensions (DWP), which they otherwise are eligible for.
Government figures have exposed a significant shortfall in benefit uptake, with 950,000 households failing to access Pension Credit worth a collective £2.5billion.
Latest statistics from the DWP revealed that merely 62 per cent of those entitled to the benefit successfully claimed it during the 2023/24 financial year.
This represents a decline from the previous year's 65 per cent uptake rate, with the benefit being reserved for those of state pension age who are on low incomes.
Are you missing out on Pension Credit?
|GETTY
The number of households missing out has surged from 760,000 in the prior period, according to newly released income-related benefits data.
Analysts cite persistent challenges in reaching vulnerable pensioners despite ongoing government awareness campaigns launched in 2022.
Notably, the data reveals stark disparities across different demographic groups.
Couples face the most significant barriers, with their claiming rate plummeting to 48 per cent in 2023/24, a dramatic fall from 59 per cent the previous year.
Pension Credit is one of the retirement benefits administered by the DWP | PASingle men show the highest engagement at 67 per cent, whilst women claim at a rate of 64 per cent. Age also plays a crucial role in benefit uptake patterns.
Pensioners aged 75 and above demonstrate lower participation rates at 60 per cent, whilst those below 75 achieve 65 per cent uptake.
These figures suggest the oldest and most vulnerable retirees face particular difficulties accessing support.
Clare Stinton, the head of Workplace Analysis at Hargreaves Lansdown, emphasised the financial impact on affected households.
She explained: "Eligible households who don't claim are missing out on an average of £2,600 a year.
"This is money that could make a real difference to retirement income, especially at a time of stubbornly high inflation and higher living costs."
She noted that the payments extends beyond monetary support with Pension Credit widely being viewed as a "gateway benefit".
Ms Stinton added: "Pension Credit is a hugely valuable and underclaimed benefit that not only tops up income, but also unlocks access to other support, including a free TV license for over 75s, as well as help with council tax."
Number of pensioners affected if pension was means tested via house price | GBNMorgan Vine, the director of Policy & Influencing at Independent Age, expressed alarm at the escalating crisis.
He shared "It's unacceptable that such vital support is failing to reach older people who need it most."
The unclaimed amount has surged from £1.5billion to £2.5billion in just one year. Mr Vine stressed that Pension Credit provides over £4,000 annually and grants access to free NHS dental treatment, the Warm Home Discount, and Housing Benefit.
"Our research shows that the current system is too complex, acting as a major barrier to access," Vine stated, urging the government to implement an all-entitlement take-up strategy that simplifies the application process for struggling pensioners.
More From GB News