- New statistics to be published by the government tomorrow (28 November) should give a better idea of the success or failure of efforts to boost Pension Credit applications
- Retirees now need to successfully claim Pension Credit to qualify for the Winter Fuel Payment – a benefit worth up to £300
- Pension Credit has historically been chronically underclaimed, with over a third of those eligible failing to fill out the relevant forms each year*
- Up to 880,000 households could be missing out on over £3,900 a year in Pension Credit payments, according to the government (Pension Credit: What you need to know - GOV.UK)
- If tomorrow’s statistics fail to show a significant increase in Pension Credit applications, chancellor Rachel Reeves will inevitably face renewed criticism over her decision to means-test the Winter Fuel Payment
Tom Selby, director of public policy at AJ Bell, comments:
“Rachel Reeves has been hauled over the coals over her shock decision to means-test the Winter Fuel Payment this year, so the chancellor will be hoping tomorrow’s figures at least show attempts to raise awareness of Pension Credit have resulted in an increase in applications from low-income retirees.
“Pension Credit has historically been chronically underclaimed, with over a third of households who could be eligible failing to make a claim each year. This could be for a number of reasons, from a lack of awareness to difficulties filling out forms or a reluctance to be seen as a benefit claimant, but the result is hundreds of thousands of people missing out on a vital source of income worth thousands of pounds a year on average.
“This year the need to claim Pension Credit is even more pressing as it will also unlock the Winter Fuel Payment, worth up to £300. Anyone who thinks they might be entitled to Pension Credit still has time to unlock their Winter Fuel Payment, but they need to get their application in by 21 December.
“While the process can feel intimidating, it is worth doing if you think you might qualify. The DWP offers a useful online tool to check if you might qualify for Pension Credit before going through the application service, and organisations like Citizens Advice and Age UK can also help guide you through the process.”
Pension credit explained
Pension Credit is a key benefit provided by the state which often tends to go unclaimed by lower income retirees.
In 2024/25, if you are over state pension age (66), single and your income is less than £218.15 a week then Pension Credit will top you up to that amount. For a couple, the combined income figure is £332.95.
In relation to Pension Credit, your income includes your state pension, other pensions, employment or self-employment earnings and most social security benefits. As with the state pension, it is up to you to claim Pension Credit.
For those who are entitled to receive it, claiming Pension Credit is also really important because it acts as a gateway to other benefits, such as help with heating costs, housing benefit, dental treatment and free TV licenses (if you are aged 75 or over). The decision to end universal Winter Fuel Payments means it also becomes a gateway to the means-tested Winter Fuel Payment.
*Source: Income-related benefits: estimates of take-up: financial year ending 2023
Weekly Pension Credit claims received from 1 July 2024 to 22 September 2024
Source: DWP Pension Credit claims
