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.
