Thousands of pensioners are missing out on 'vital benefits'.
According to government figures, up to 850,000 families who were entitled to receive Pension Credit did not claim the benefit in the financial year 2019 to 2020.
The Department for Work and Pensions (DWP) said up to £1.7bn of available Pension Credit went unclaimed.
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On average, this amounted to around £1,900 per year for each family entitled to receive Pension Credit who did not claim the benefit.
Pension Credit gives people extra money to help with living costs if they are over state pension age and on a low income.
An estimated seven out of 10 of those entitled to Pension Credit did claim.
Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, said: "Pension Credit take-up continues to inch up but there are still up to 850,000 pensioner households missing out on this vital benefit.
"Pension Credit boosts the income of the poorest pensioners and acts as a valuable gateway to other benefits such as help with heating bills and NHS treatment. If you are aged over 75 you are also entitled to a free TV licence."
Up to 260,000 thousand pensioners who were entitled to receive Housing Benefit did not claim the benefit, according to the figures. On average, this amounted to around £4,000 per year going unclaimed.
Ms Morrissey said: "These are enormous sums of money that could really boost people's income in retirement, and it is vitally important that those who think they may be entitled to support check to see if they are entitled."
A DWP spokesperson said: "We want to ensure pensioners receive all the support to which they are entitled and it is encouraging to see that take-up of Pension Credit increased in 2019/20, with the number of new claims 30% higher in 2021 compared to 2019.
"We continue to work with stakeholders and others to encourage those eligible for Pension Credit, and the wide range of other benefits it can provide, to make a claim."
Pension Credit eligibility
You must live in England, Scotland or Wales and have reached State Pension age to qualify for Pension Credit.
You must include your partner on your application.
You’ll be eligible if either:
- you and your partner have both reached State Pension age
- one of you is getting Housing Benefit for people over State Pension age
When you apply for Pension Credit your income is calculated. If you have a partner, your income is calculated together.
Pension Credit tops up:
- your weekly income to £177.10 if you’re single
- your joint weekly income to £270.30 if you have a partner
If your income is higher, you might still be eligible for Pension Credit if you have a disability, you care for someone, you have savings or you have housing costs.
Other help if you get Pension Credit
If you get Pension Credit you can also get other help, such as:
- Housing Benefit if you rent the property you live in
- Support for Mortgage Interest if you own the property you live in
- Council Tax Reduction
- a free TV licence if you’re aged 75 or over
- help with NHS dental treatment, glasses and transport costs for hospital appointments
- help with your heating costs
How to claim Pension Credit
You can start your application up to 4 months before you reach State Pension age.
You can apply any time after you reach State Pension age but your application can only be backdated by 3 months. This means you can get up to 3 months of Pension Credit in your first payment if you were eligible during that time.
Information you’ll need
You’ll need the following information about you and your partner if you have one:
- National Insurance number
- information about any income, savings and investments you have
- information about your income, savings and investments on the date you want to backdate your application to (usually 3 months ago or the date you reached State Pension age)
You’ll also need your bank account details if you’re applying by phone or by post.
Apply online
You can apply here.
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