Thousands of pensioners have received a major boost worth almost £3,900 a year, but experts warn many are still missing out.
New figures suggest huge numbers of retirees could be overlooking a benefit that unlocks extra cash and vital support.
The Department for Work and Pensions (DWP) confirmed today that Pension Credit claims have soared since the Government announced Winter Fuel Payments would only go to those receiving the benefit.
Between July 2024 and July 2025, applications rose by 44 per cent, with more than 98,000 additional claims submitted compared with the previous year, taking the total to 320,300. Of these, 181,100 claims were approved, a 46 per cent rise on the year before.
At £3,900 a year per new award, these extra Pension Credit claims add an estimated £223million to the benefits bill, even before factoring in knock-on help such as council tax support.
However, experts warn that too many pensioners are still missing out.
Stephen Lowe, group communications director at retirement specialist Just Group, said: "This remains a drop in the context of the estimated 700,000 families eligible for Pension Credit but not claiming it.
"Many people may simply be unaware of the benefit, not know how to claim, or assume they are not eligible if they own their own home. This year’s research among people over 66 found that four in ten homeowners and one in seven renters had never checked their benefit entitlement."
"If you think you, or a member of your family, may be entitled to Pension Credit there are a range of free resources to help check eligibility.
"The government website has links to useful third-party calculators (https://www.gov.uk/benefits-calculators) while other good sources are Citizens Advice, local councils and charities."
Pension credit can still be claimed if eligible
| GETTYThe original Winter Fuel Payment reform was expected to save £1.5billion annually, but after a Government U-turn in June 2025 restored payments to those with incomes under £35,000, projected savings fell to £450million.
When the added Pension Credit costs are included, the net saving falls further to around £227million, just £1 in every £6 of the original goal.
What is Pension Credit?
Pension credit is an income-related benefit designed to top up the weekly income of people over the age of state pension who are on a low income.
The Guarantee Credit element ensures that single pensioners receive at least £227.10 a week and couples receive at least £346.60 weekly.
Extra amounts may also be available for pensioners with severe disabilities, carers, those responsible for children or young people, or those with housing costs such as ground rent or service charges.
For those who reached state pension age before 6 April 2016, a separate Savings Credit component can also provide up to £17.30 a week for single pensioners and £19.36 a week for couples, rewarding those who have saved for retirement.
Eligible non-claimants still far outnumber claimants despite rise
|DWP STATS/GBNEWS
Who can claim?
Eligibility requires that claimants live in England, Scotland, or Wales and have reached State Pension age. Claimants must include any partner on their application, and income is assessed jointly. Income includes state, other pensions, earnings, and most social security benefits.
Savings under £10,000 do not affect entitlement, while savings above this threshold are partially counted. Certain benefits, including Attendance, Disability Living Allowance, and Child Benefit, are not counted as income.
How to claim
Applications can be made online, by phone, or by post. You can apply up to four months before reaching State Pension age, or anytime after, though applications can only be backdated by three months.
Claimants will need information about their income, savings, investments, National Insurance number, and bank account details.
DWP saw a rise in claims
| GETTYSupport is available from organisations such as Citizens Advice and Age UK for those who need help completing the form.
Claimants receiving pension credit may also be eligible for additional support, including housing benefits, support for mortgage interest, council tax reduction, NHS cost help, and a free TV licence for those aged 75 or over.
Mr. Lowe emphasised the importance of checking eligibility: “With the link between Pension Credit and Winter Fuel Payments, it is vital that pensioners do not miss out.
"A range of free resources, including government benefit calculators and advice from local councils or charities, can help people ensure they are claiming everything they are entitled to.
"For more information or to check eligibility, visit the government website or contact the Pension Service helpline at 0800 99 1234."