Many pensioners across the United Kingdom are unknowingly missing out on thousands of pounds each year. According to the Department for Work and Pensions (DWP), a significant number of older people are failing to claim Pension Credit, leaving them short of an average £4,300 annually. In 2025, applications for Pension Credit have started to rise, but millions are still not receiving what they are entitled to.
This article explains what Pension Credit is, why so many pensioners are not claiming it, how much they could be losing each year, and what steps can be taken to secure the full entitlement.
What is Pension Credit
Pension Credit is a government benefit designed to top up the income of pensioners who are living on a low income. It is aimed at ensuring that older people do not fall below a basic standard of living in retirement. Unlike the State Pension, which everyone receives based on their National Insurance contributions, Pension Credit is a means-tested benefit.
There are two parts to Pension Credit. Guarantee Credit tops up weekly income to a minimum level. Savings Credit provides an additional payment for those who have saved some money towards retirement, though this element is gradually being phased out for newer claimants.
How Much is Being Missed
The shocking reality is that up to 850,000 eligible pensioners in the UK are not claiming Pension Credit. Collectively, they are missing out on over £1.7 billion of support each year. For an individual household, that means an average of £4,300 annually is going unclaimed.
This money could make a vital difference for pensioners struggling with rising food costs, energy bills, and everyday expenses. In many cases, it can also open the door to other benefits such as free TV licences, help with NHS prescriptions, and council tax reductions.
Why Pension Credit Matters
With the cost of living still high in 2025, Pension Credit has become more important than ever. For many pensioners living on a fixed income, this benefit can mean the difference between heating their home in the winter or going without. It provides a crucial safety net, ensuring that older people are not forced into poverty during retirement.
Furthermore, Pension Credit acts as a gateway to other forms of support. Those who qualify often become eligible for the Cost of Living Payments, the Warm Home Discount, and even additional help from local councils. This makes the true value of Pension Credit much higher than the cash payments alone.
Who Can Claim
Pension Credit is available to people living in the UK who are State Pension age or older. To qualify, applicants must have a weekly income below a certain threshold. For 2025, Guarantee Credit tops up single pensioners’ income to around £218 per week and couples’ income to about £332 per week.
Even those with modest savings or a small private pension may still qualify. Many pensioners wrongly believe that owning a home or having some savings means they are not eligible, but this is often not the case.
Common Misconceptions
One of the main reasons so many pensioners do not claim Pension Credit is because of widespread misconceptions. Some believe it is only for those with no other income, while others assume they would be automatically enrolled. In reality, Pension Credit must be applied for, and eligibility is broader than many expect.
Another misconception is that applying is complicated. While the process used to be time-consuming, it has now been simplified. Applications can be made online, by phone, or by post, and support is available to guide pensioners through the process.
The Surge in Claims in 2025
In 2025, the government has launched renewed campaigns to encourage pensioners to apply for Pension Credit. As a result, there has been a noticeable surge in applications. Local councils, charities, and community organisations are also helping spread awareness, making it easier for pensioners to understand their entitlement.
Despite this progress, take-up rates are still not as high as they should be. Many older people remain unaware or are reluctant to claim, meaning that billions of pounds of support continues to go unclaimed.
How Pension Credit is Paid
Pension Credit is usually paid every four weeks, directly into the pensioner’s bank account. Once approved, payments are backdated for up to three months if the pensioner was eligible during that time. This means many people can receive a lump sum at the start of their claim, followed by regular ongoing payments.
For pensioners already receiving the State Pension, Pension Credit is paid separately but into the same account. This makes it easy to track and ensures payments are consistent.
The Wider Benefits of Claiming
Beyond the cash payment itself, Pension Credit unlocks a range of additional benefits. These include:
- Free TV licences for those aged 75 and over.
- Full or partial help with council tax.
- Cold Weather Payments during particularly harsh winters.
- Extra Cost of Living Payments announced by the government.
- Free NHS dental treatment and help with prescription costs.
For many pensioners, these added benefits can save hundreds or even thousands of pounds each year. This makes claiming Pension Credit even more worthwhile.
Barriers to Claiming
Despite its importance, many pensioners are still hesitant to claim. Pride, lack of awareness, or fear of bureaucracy are often cited as reasons. Some do not want to be seen as needing help, while others worry that the process will be too difficult.
There are also concerns about stigma. Older generations, in particular, may be reluctant to apply for what they see as a “handout,” even though they are fully entitled to it after years of paying taxes and contributing to society.
Government Campaigns
To combat this issue, the DWP has stepped up its efforts in 2025. Advertising campaigns on television, radio, and social media are targeting pensioners and their families. Leaflets are being distributed in GP surgeries, libraries, and post offices, while community organisations are being encouraged to help older people apply.
The government has also made it easier for family members or carers to apply on behalf of pensioners, ensuring that those who struggle with technology or paperwork are not left behind.
How to Apply
Applying for Pension Credit is straightforward. Pensioners can apply by calling the Pension Credit claim line, completing an online form on the government website, or sending a paper application by post. Applicants will need details of their income, savings, and housing situation, but the process is designed to be simple.
Once submitted, applications are usually processed quickly. Pensioners can then expect to receive their payments within a few weeks, with backdated amounts included.
The Role of Families
Family members play a crucial role in ensuring older relatives do not miss out. Adult children and grandchildren are being encouraged to check if their parents or grandparents are eligible. A simple conversation can help identify those who qualify but have not yet applied.
By assisting with the application process, families can make sure their loved ones receive the financial support they deserve.
Looking Ahead
With the surge in claims in 2025, the outlook is positive, but there is still work to do. The government hopes that ongoing campaigns will continue to raise awareness and increase take-up. If more pensioners claim what they are entitled to, the risk of poverty in old age can be reduced significantly.
Experts argue that automatic enrolment could be the best long-term solution, ensuring no pensioner misses out due to lack of awareness. Until then, continued education and outreach will remain essential.
Final Thoughts
Pension Credit is one of the most valuable yet underclaimed benefits in the UK. With millions of pensioners missing out on an average of £4,300 each year, the financial impact is huge. In 2025, claims are finally starting to rise, but many older people are still unaware of what they could be receiving.
By applying for Pension Credit, pensioners not only increase their income but also gain access to a range of additional benefits that can make retirement more comfortable. With support from families, communities, and government campaigns, more pensioners can get the help they need.
The message is clear: if you or someone you know may be eligible, do not wait—check now and claim what is rightfully yours.