The Department for Work and Pensions (DWP) has recently disclosed that around 910,000 state pensioners born before 1960 are missing out on an average annual boost of £4,300 from Pension Credit. This benefit is designed to provide additional income for retirees whose earnings fall below set thresholds.
The DWP estimates that up to £2.5 billion in Pension Credit remains unclaimed every year, leaving many pensioners without essential financial assistance. Pension Credit offers a top-up for single pensioners with a weekly income under £238, while couples with a combined weekly income below £363.25 are also eligible.
Labour Party Work and Pensions Secretary Pat McFadden emphasized the importance of this support amidst rising living costs, stating: “This Government will always protect our pensioners.” David Cooper, director at retirement specialist Just Group, highlighted the complexity of the benefits system and urged pensioners to verify their eligibility.
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To qualify for Pension Credit, applicants must reside in the UK and have reached State Pension age, typically those born before 1960. Income thresholds may be higher for people receiving disability-related benefits or with caring responsibilities.
Money Saving Expert advises pensioners to review their income carefully: singles should check if their income is below £250 per week, and couples below £380 per week. Couples must both have reached State Pension age and, although marriage is not required, they must live together to be considered a couple for claims.
By ensuring eligible pensioners claim Pension Credit, many could receive a substantial uplift in their annual income, providing significant relief during financially challenging times.