State pension: Retirees could be missing out on £3,500 annual top up

In an urgent message, it said: “If you qualify for Pension Credit you could be on average £3,500 a year better off.

“Find out more about Pension Credit. Eligibility criteria apply.”

Pension Credit could top-up a person’s income to £201.05 a week for single claimants and up to £306.85 a week for couples.

It is a misconception that retirees with savings or who own their own home are not eligible for the scheme.

The DWP stressed that thousands could be missing out on benefitting from the Pension Credit programme.

Around 850,000 pensioner households fail to claim £1.8billion annually in Pension Credit, estimates have revealed.

However, Pension Credit can also bring retirees additional perks.

Those on Pension Credit are automatically entitled to cold weather payments.

They can also apply for a free TV licence if they are aged 75 or over.

NHS costs can cover prescriptions, dental care, glasses and transport to attend hospital appointments.

The additional perks lend to why Pension Credit is often considered a gateway benefit.

But Pension Credit is split into two parts - the Guarantee Credit and Savings Credit.

Guarantee Credit could be available for those who have reached the state pension age.

There is a requirement to fall beneath weekly income thresholds of £201.05 if they are single or £306.85 if they are a couple.

However, even if someone’s weekly income exceeds the threshold, people could still claim if they have a severe disability, are a carer or have to pay housing costs.

Savings Credit provides extra cash for those with some savings or an income higher than the basic state pension.