Up to one million pensioner families could be missing out on an average of £4,300 a year that they are eligible to receive, according to the Department for Work and Pensions (DWP). Up to 910,000 families who were entitled to Pension Credit did not claim the benefit, meaning up to £2.5 billion went unclaimed. To help more people over State Pension age access additional financial support over the coming months, the DWP is continuing its efforts to increase take-up of the income-related benefit.
Pension Credit can provide a top-up for single people on the New State Pension who have a total weekly income below £238.00, or couples with a combined weekly income of less than £363.25. The Government has already delivered above-inflation increases worth up to £395 in real terms over this Parliament. By the end, pensioners’ annual incomes are expected to rise by up to £2,100 – boosting financial security for millions.
Pension Credit will rise by 4.8% and be worth an average of £4,300 a year, unlocking further support including help with housing costs, council tax and free £180 TV licences.
Between 2026 and 2027, the Government will provide a £6 billion boost to spending on State Pensions and pensioner benefits.
The increases come into effect as the Government takes wider action to ease pressure on household finances, including raising the National Living Wage, cutting an average of £150 from household energy bills, lifting the two-child limit and freezing rail fares and prescription charges.
Work and Pensions Secretary Pat McFadden said: “I know global shocks, and the effects they have on our living costs, will be increasing anxiety for many households.
“This Government will always protect our pensioners, and that’s why we are raising the full rate of new State Pension by up to £575 this coming year.”
Minister for Pensions Torsten Bell said: “After a lifetime of work and contribution, people deserve a decent retirement. Raising the State Pensions faster than prices, ensuring it is a pension they can rely on, is how we make that a reality for millions.”