The Department for Work and Pensions has confirmed it is sending letters to state pensioners this year as part of a renewed effort to increase take-up of Pension Credit, a benefit potentially worth up to £3,900 a year. The move comes amid continued concern that hundreds of thousands of eligible pensioners are not claiming support they are entitled to.
Pension Credit is a tax-free, means-tested benefit for people over State Pension age on low incomes. It is not paid automatically, even if someone appears eligible, which has contributed to long-standing underclaiming.
Benefit
Pension Credit is designed to top up income to a guaranteed minimum level. It currently boosts weekly income to at least £238.00 for single pensioners and £363.25 for couples. For many recipients, this can amount to thousands of pounds a year in additional support.
Beyond the direct payment, Pension Credit acts as a gateway to other help. Those who qualify may also gain access to Housing Benefit, help with council tax, Cold Weather Payments, and free NHS services such as dental care and prescriptions.
Letters
During a recent Work and Pensions Committee hearing in the House of Commons, Secretary of State Pat McFadden confirmed that the DWP has begun sending letters to pensioners to raise awareness of Pension Credit. The initiative has been reported by Chronicle Live.
A key message highlighted in the letters is eligibility for a free TV Licence for people aged 75 or over who receive Pension Credit. The DWP believes this incentive has proven effective in encouraging applications. Eligibility applies whether Pension Credit is claimed by the individual or their partner, as long as both live at the same address.
Uptake
Despite repeated campaigns, Pension Credit uptake remains at around two thirds of those eligible. The government estimates that around 900,000 low-income pensioners are missing out on the benefit.
Mr McFadden told the committee that underclaiming has been a persistent issue for many years. While recent efforts have increased the number of claimants, he acknowledged that more progress is needed to ensure pensioners receive the help available to them.
Committee member John Milne described the situation as unacceptable, questioning why uptake has not improved further despite sustained efforts.
Campaigns
To address the issue, the DWP is focusing on two main strategies. Alongside direct outreach to pensioners, it is launching campaigns aimed at family members, friends, and neighbours of older people. The department believes this approach can help overcome reluctance among pensioners who may feel uncomfortable asking for financial support.
Previous campaigns using this method have shown results. One included the late Len Goodman, whose involvement led to a noticeable rise in applications. Another encouraged relatives to consider whether older people in their lives might be eligible, helping to address what officials describe as a “pride barrier”.
Officials
Mr McFadden stressed that Pension Credit is a right, not a handout, and encouraged anyone who thinks they may be eligible to apply. He said pensioners have nothing to lose by making a claim.
Sir Peter Schofield, Permanent Secretary at the DWP, told the committee that improving Pension Credit uptake has been a long-standing priority for the department. He noted that linking Pension Credit to other benefits, such as winter fuel payments in the past and TV Licence support, has made a significant difference.
In the past year, the number of people receiving Pension Credit has risen by around 34,000, according to the department.
Data
Sir Peter also confirmed that the DWP is making greater use of data to identify potentially eligible pensioners. One example is outreach to people of pension age who are already claiming Housing Benefit.
The department previously sent around 120,000 letters as part of this process and now does so on a regular basis. Officials said there is potential to expand data sharing further, including working more closely with other organisations, to identify those who may be entitled to Pension Credit but are not yet claiming it.
Outlook
The DWP has signalled that efforts to increase Pension Credit take-up will continue. With rising living costs and a large number of pensioners still missing out, ministers and officials say awareness and outreach remain essential.
For pensioners and their families, the message from the department is clear. Checking eligibility and making a claim could unlock vital financial support and access to additional benefits that can significantly improve quality of life in retirement.
FAQs
What is Pension Credit?
A means-tested benefit for low-income people over State Pension age.
How much is Pension Credit worth?
It can be worth up to about £3,900 a year.
Is Pension Credit paid automatically?
No, eligible pensioners must apply.
Who gets a free TV Licence with Pension Credit?
People aged 75 or over who receive Pension Credit.
