Pensioners are being urged to check whether they are missing out on thousands of pounds in financial support, as experts warn millions may not be claiming benefits they are entitled to. The warning comes after one retired couple revealed they saved more than £3,000 a year after following advice from Martin Lewis and successfully applying for Pension Credit - a benefit widely seen as underused.
Low Uptake of Pension Credit
Figures from the Department for Work and Pensions (DWP) show that fewer than 70% of eligible pensioners across England, Scotland and Wales are currently claiming Pension Credit, despite it being designed to top up income for those on a low retirement income. While the payments themselves can appear modest, the benefit often unlocks a wider package of support, including help with council tax, energy bills and other living costs.
In a case shared by MoneySavingExpert, Anne, 76, and her husband, 83, were awarded just £6.10 a week in Pension Credit. However, the claim opened the door to a range of additional support.
Real-Life Savings
Anne said: “Due to the application being backdated to when I applied, I did not have any Council Tax to pay this year - a saving of over £2,500/year. Add to this a free TV licence, Warm Home Discount, and a lower water bill. This has resulted in a saving of over £3,000 a year. This has made such a difference to my husband and me, with less worry over the cost of living. I am still budgeting very carefully, but with less pressure and anxiety.”
Despite the financial boost, she admitted feeling reluctant to discuss the benefit with others. “I am too embarrassed to tell my friends that I am in receipt of these benefits,” she said, while encouraging others to apply.
Barriers to Claiming
That concern is echoed by Money Wellness, which estimates people are missing out on an average of £3,000 a year in unclaimed benefits. Rebecca Lamb, external relations manager at the organisation, said barriers go beyond a simple lack of awareness. “It's not just awareness. There are other barriers too. Stigma is still a big one. A lot of people feel uncomfortable about claiming benefits, especially if they've worked all their lives,” she said.
She also warned that the application process itself can deter people from applying. “The process can also put people off. It can feel complicated, it's definitely time-consuming, and it can be quite overwhelming if you're already struggling,” she said. “There’s also fear of being rejected, which stops people even trying. And sometimes it's just life - people are busy, dealing with bills, work, family pressures, and applying for support gets pushed to the bottom of the list.”
Experts say many people wrongly assume they are not eligible, or dismiss the benefit because the initial payment appears small - without realising the wider financial impact. Ms Lamb said more proactive action is needed to ensure people are aware of what they may be entitled to. “At the moment, too much relies on people knowing when to check, and in reality, most people don't. If the DWP or local authorities could prompt people when something changes - even just a simple message saying 'you may want to check what you're now entitled to' - that could make a real difference.” She also suggested banks and utility companies could play a role by directing customers to support if they spot early signs of financial difficulty.
What Pension Credit Offers
Pension Credit is designed to top up the income of people over state pension age on lower incomes, with payments bringing weekly income up to £238 for single claimants and £363.25 for couples, depending on circumstances. On average, successful claimants receive around £4,300 a year. As well as boosting income, the benefit can unlock a range of extra support, including:
- Council tax reductions
- Housing benefit
- Free TV licence for over-75s
- Help with NHS costs such as dental treatment
- Discounts on energy bills
Campaigners, including Martin Lewis, continue to urge pensioners to check their eligibility using online tools available via GOV.UK and other services. Experts say that even a small weekly award can unlock significantly larger savings, making it worth checking - particularly at a time when many households continue to face rising living costs.
