One million state pensioners are missing out on an important state benefit worth £4,524. The money is available to help older people with everyday costs.
Pension Credit increases income to reach specific thresholds for older retirees earning less than the new state pension, otherwise referred to as the “full” state pension. Department for Work and Pensions or DWP figures reveal it received 209,735 applications between February 24 2025 and February 22 2026 – a 36% decline compared to the previous year, when there were 327,330 applications.
Approximately 910,000 households are failing to claim the benefit, resulting in up to £2.5billion going unclaimed. The average weekly sum for pensioners receiving the benefit is £87 per week – totalling £4,524 annually.
Eligibility criteria mean single pensioners with weekly earnings below £227.10, equivalent to roughly £11,800 yearly, qualify for the benefit. Couples are eligible if their joint weekly income falls below £346.60, or about £18,000 per year, with these thresholds expected to increase from April, reports Birmingham Live.
David Brooks, head of policy at Broadstone, said: “The DWP research shines a light on many of the attitudinal and awareness issues that have plagued Pension Credit take-up, with entitled pensioners still lacking a clear understanding of eligibility requirements and the application process.”
He continued: “Many are holding assumptions that homeownership or savings may exclude them from this financial support, and delivering vital financial assistance to the nearly one million eligible families not currently claiming is essential for their retirement quality of life. We would hope to see continued and urgent efforts to increase awareness and uptake to support more pensioners in need with this additional income.”
Should you apply after reaching state pension age, your application can only be backdated by three months. Applications can be made online through the government website, or via phone or post.
Pension Credit applications must be submitted directly to the DWP. This can be done either online or by telephone: 0800 99 1234.
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