Being a homeowner, having savings or receiving a private pension does not automatically disqualify you

Thousands of pensioners could be losing out on a £227-a-week benefit increase that also provides access to free TV licences, assistance with council tax, housing expenses and NHS treatment.

Latest statistics show applications for Pension Credit have plummeted by more than a third over the past year, despite Government ministers encouraging older people to verify their eligibility. Department for Work and Pensions data examined by Which? shows there were 209,735 Pension Credit applications between February 2025 and February 2026 – a 36% drop from the 326,842 received during the preceding 12 months.

The dramatic decline follows a spike in claims when the Government connected Winter Fuel Payments to Pension Credit, triggering a significant awareness drive. Applications temporarily reached around 10,000 weekly, but have subsequently returned to the long-term average of approximately 4,000 per week. Consumer organisation Which? is concerned many older people are still mistakenly believing they are not entitled to the benefit.

Being a homeowner, having savings or receiving a private pension does not automatically disqualify you from claiming.

Research commissioned by the DWP discovered many successful applicants only realised they were eligible after submitting what they considered an unlikely application. Those over 75 were especially prone to discovering the benefit by accident, while people aged between 66 and 74 were more inclined to learn about it directly from the DWP.

Worth up to £227 a week

Pension Credit is designed to top up the income of people over State Pension age who are living on a low income.

The Guarantee Credit element currently increases weekly income to at least:

• £227.10 for a single pensioner.
• £346.60 for a couple.

From April 2026 these amounts are due to rise to:

• £238.00 for a single person.
• £365.25 for a couple.

Some older pensioners may also qualify for Savings Credit if they reached State Pension age before April 2016.

A benefit that unlocks thousands of pounds of extra help

Specialists say the true value of Pension Credit lies in its role as a so-called “passport benefit”, unlocking access to a broad range of additional financial assistance.

Depending on individual circumstances, claimants may be entitled to:

• Housing Benefit to help cover rental costs.
• Support for Mortgage Interest loans for homeowners struggling to meet mortgage repayments.
• Council Tax Reduction from their local authority.
• Cold Weather Payments during periods of freezing temperatures.
• Discounted water bills and broadband social tariffs.
• A free TV licence for households where someone is aged 75 or over and Pension Credit is being claimed.
• Free NHS dental treatment.
• Assistance towards the cost of glasses and contact lenses.
• Help with travel expenses for hospital appointments.

Some claimants may also receive additional Pension Credit payments if they are carers or have disabilities.

The Carer Addition is currently worth £46.40 a week, rising to £48.15 from April 2026. Families where a pensioner cares for a child may also be entitled to extra payments worth up to £77.78 per week for each child, while those organising a funeral could receive assistance towards burial or cremation expenses.

Why people are missing out

The DWP identified three primary reasons people ultimately chose to apply:

• They were finding it difficult to manage financially on a low income.
• Their situation had altered due to bereavement or ill health.
• They were prompted to claim by relatives, friends or an advice organisation.

Which? reports that many pensioners continue to dismiss the benefit, believing modest savings or a private pension automatically disqualify them. In truth, numerous homeowners and people with some retirement income remain eligible for assistance.

With claims now returning to pre-campaign figures, charities and consumer organisations are encouraging older people who believe they may be eligible to verify their entitlement, cautioning that Pension Credit can prove considerably more valuable than the headline weekly sum once all the supplementary support is factored in. Further information is available here.

The new rule will be in force from today and replaces an ‘opt-in’ system

All face-to-face and telephone health assessments for disability and sickness benefits will be audio recorded as standard from today, the Department for Work and Pensions has announced. The change means that claimants undergoing assessments for Personal Independence Payment (PIP), Work Capability Assessments (WCA) in Universal Credit and Employment and Support Allowance, and Industrial Injuries Disablement Benefit (IIDB) will have their assessment automatically recorded, unless they choose to opt out.

The move marks a significant shift from the previous opt-in system, under which claimants had to request a recording themselves. Despite being offered the option through invitation letters and assessment supplier websites, fewer than 3 per cent of claimants took up the offer.

The new policy is designed improve public trust in the health assessment process. Recordings will also be used as a learning tool to identify potential improvements to assessment quality and will be made available to claimants who wish to appeal their initial benefit award.

Minister for Social Security and Disability Sir Stephen Timms said: “Improving transparency and trust in the benefits system is one of this government’s key aims, which is why we’re making this important change. Audio recording health assessments as standard will mean we are available to make improvements and increase assessment quality, resulting in a better experience for claimants.”

Feedback from disabled people, the organisations that represent them and disability-focused research has found that some disabled people who claim health and disability benefits lack trust in the health assessment process. The policy delivers on a commitment first made in the Pathways to Work Green Paper, published in March 2025, which set out the government’s intention to make recording standard practice across assessments.

Written reports will still be used as part of the decision-making process, with audio recordings providing a more accurate record should that be required.

Today’s announcement comes alongside the government’s wider work to improve people’s experience of, and trust in, the benefits system. That includes delivering on our commitment to increase face-to-face assessments from 12 percent to 30 percent, which fell sharply under the previous government, as well as employing nearly 500 additional staff to clear the inherited Access to Work backlog.

The tax authority has put out a reminder

Millions of Britons have just one month remaining to make a crucial tax payment, with HMRC cautioning that those who delay until the final deadline could face avoidable anxiety.

The tax authority is reminding Self Assessment customers that the second Payment on Account for the 2025/26 tax year must be settled by July 31. Payments on account are advance instalments towards the following year’s tax liability. They are typically required if your previous Self Assessment tax bill exceeded £1,000 and you did not already pay at least 80% of the tax owed through PAYE or other deductions.

Each payment is usually equivalent to half of the previous year’s tax bill. HMRC says customers who are struggling to meet the bill can spread the cost by arranging weekly or monthly payment plans, with any instalments already paid counting towards the sum due next month. The department is also urging taxpayers to use its app, describing it as the fastest method of payment.

More than 110,000 payments have been processed through the HMRC app since April, while nearly 2 million Self Assessment customers have used the app to settle their tax bills since its launch in January 2022. The app also enables users to set payment reminders and monitor their payment history.

Myrtle Lloyd, HMRC’s Chief Customer Officer, said: “We know managing a Self Assessment tax bill isn’t always straightforward and we are here to help. From paying instantly via the HMRC app to spreading the cost through a payment plan, there’s support available for every customer.

“Search ‘Pay your Self Assessment tax bill’ on GOV.UK to choose the payment option that works for you.”

Payments on account are not required by everyone. They are typically unnecessary if the previous year’s Self Assessment bill came to less than £1,000, or if more than 80% of the tax owed was collected through a tax code or deducted before the income was received.

Tax experts also highlight that anyone anticipating lower earnings this year compared to last can request HMRC to reduce their payments on account, though reducing them excessively could result in interest charges if they underpay.

While the July payment is drawing near, taxpayers are not obliged to wait until January to file their next tax return.

HMRC states that people can submit their 2025/26 Self Assessment return now, enabling them to discover their final tax bill well ahead of the January 31, 2027, filing and payment deadline. Filing early also provides taxpayers with additional time to budget for any balancing payment that may still be outstanding.

In a further development, from mid-July approximately 300,000 people who pay the High Income Child Benefit Charge will have Child Benefit information automatically populated in their online Self Assessment return, streamlining the process and improving accuracy.

The reminder arrives as substantial reforms to the tax system continue to be implemented, with sole traders and landlords earning above £50,000 now obliged to adhere to Making Tax Digital for Income Tax, submitting quarterly updates through compatible software. Their initial quarterly submission deadline falls on August 7 2026.

HMRC is also encouraging taxpayers to remain vigilant against fraudsters, cautioning that criminals regularly pose as the department through emails, texts and phone calls in attempts to obtain money or personal information. Taxpayers are advised never to click on links in unsolicited messages or disclose their Government Gateway login credentials.

The average price of unleaded petrol has now changed

Motorists are poised for some much-needed respite at the forecourt this week as fuel prices undergo changes.

The average cost of unleaded petrol has now declined to 151.98p per litre, while diesel has dropped to 168.64p per litre, according to the most recent RAC Fuel Watch data. However, the RAC maintains that retailers ought to be reducing prices even more substantially, contending that drivers are still being overcharged despite wholesale fuel costs plummeting.

RAC head of policy Simon Williams said: “Fuel prices are falling steadily in reaction to the drop in the price of oil and wholesale petrol and diesel costs which is good news for drivers who’ve had a torrid time at the pumps this year. But our analysis of wholesale data shows the reduction should be faster and greater, particularly for diesel.”

He continued: “The average price of petrol has come down 2p in the last week to 151.98p and diesel by 4p to 168.64p. Since unleaded hit an Iran war high of 159.53p on 28 May it’s fallen by almost 8p whereas diesel is down 23p from its peak of 191.54p on 15 April.”

Mr Williams indicated that drivers should shortly be witnessing average petrol prices dipping below 150p per litre and diesel below 160p per litre if retailers completely pass on reduced wholesale costs.

He said: “Drivers really ought to see average prices of below 150p for unleaded and below 160p for diesel in the next week or so.”

Even accounting for the recent price reductions, filling a typical 55-litre family car still costs £83.59 for petrol and £92.75 for diesel. That remains £10.50 more for petrol and £14.40 more for diesel than before the Iran conflict sent oil prices soaring at the end of February. The renewed calls for lower forecourt prices come as the global oil market has cooled considerably.

Brent crude was trading at around $73 a barrel on Monday morning, a far cry from the levels reached at the peak of the Middle East conflict, after fears over supplies through the Strait of Hormuz began to ease. Oil prices have now fallen back to roughly where they stood before the latest surge in geopolitical tensions.

The declining oil price has once again raised questions over how swiftly fuel retailers pass on savings to motorists.

It emerged last week that the sharp drop in crude oil prices had not yet been fully reflected at Britain’s petrol stations, despite wholesale fuel costs falling steeply. The RAC noted that pump prices typically trail movements in oil markets, but argued that retailers ought to be cutting prices more rapidly.

The matter is also under close scrutiny from the UK’s competition watchdog. Earlier this year, the Competition and Markets Authority put fuel retailers on notice over potential profiteering during the oil price spike, and has continued to keep a close eye on whether wholesale savings are being passed on fairly to drivers.

The regulator has cautioned that it is seeking proof of the so-called “rocket and feather” effect, whereby prices shoot up swiftly when oil grows more costly but drop far more gradually when those costs begin to decline.