- New figures from the Department for Work and Pensions (DWP) show Pension Credit uptake remains stagnant at around 1.4 million claimants (DWP benefits statistics: August 2024 – GOV.UK (www.gov.uk))
- Although there were 11,000 fewer recipients compared with the same period last year and 24,000 fewer compared with 2022
- Chancellor Rachel Reeves last month announced that winter fuel payments would be scrapped for most pensioners this winter, with those receiving Pension Credit among those to continue getting the benefit
- Winter fuel payments are worth up to £300 per year, with the exact amount dependent on your age and whether other people in your household also qualify
- Roughly two thirds (63%) of those eligible to receive Pension Credit make a claim, according to the latest figures from the DWP*
- These figures highlight the significant challenge facing the government in dealing with this Pension Credit uptake gap, with the clock ticking to winter
Tom Selby, director of public policy at AJ Bell, comments:
“The latest figures from the DWP suggest Pension Credit uptake remains stagnant compared with the previous two years, with just under 1.4 million claimants in February of this year. The actual number of claimants fell by 11,000 compared with the same period in 2023 and is down by 24,000 since 2022, highlighting the significant challenge facing the government in increasing uptake before universal winter fuel payments are scrapped later this year.
“Reeves’ axe unexpectedly fell on most pensioners’ winter fuel payments when she addressed the ‘black hole’ in the country’s public finances at the end of July, with only lower income retirees in receipt of benefits or income support set to qualify for the payment this year. Given the winter fuel payment is worth up to £300 a year, this will represent a significant hit on the incomes of millions of retirees.
“Although these figures don’t cover the period since the chancellor announced the shock withdrawal, the fact the number of Pension Credit claimants has been gradually falling over the past two years presents a concerning picture for pensioners who most need support from the government but who may not be aware they need to claim. These figures also indicate that the government’s efforts to encourage more eligible pensioners to claim Pension Credit in June last year failed to increase the number of claims, meaning any new campaign will likely need additional backing from the government if it is to genuinely make a difference.
“The move means it is even more important low-income households entitled to Pension Credit make a claim this year. Worryingly, the latest government estimates* suggest just 6-in-10 people who are eligible for Pension Credit make an application, potentially costing those on the lowest incomes thousands of pounds in lost income. Pension Credit also acts as a gateway to other valuable benefits, including dental treatment and free TV licenses.
“It is therefore absolutely vital the government scales up communications around Pension Credit to drive an increase in take-up. Failure to do this would risk leaving vulnerable pensioners in a desperate financial position when the cold hits.
“The chancellor has also indicated plans to amalgamate pension credit and housing benefit in order to drive increased take up**, but the benefits system is incredibly complex so this may not be a simple fix. It is imperative the government gets this right to ensure people don’t miss out on this crucial benefit.”
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).
*Source: Income-related benefits: estimates of take-up: financial year ending 2022
