New data from the Department for Work and Pensions (DWP) shows one in 10 Pension Credit claimants are failing to receive their portion of an estimated £100 million due to not supplying the Department with precise details.

Retirement expert Just Group is urging those claiming Pension Credit – the main benefit designed to support individuals over State Pension age on a low income – to ensure the accuracy of the information they submit. This advice follows the DWP‘s estimation that claimants across England, Scotland, and Wales are missing out on roughly £100 million each year, translating to about £700 per household, as reported by the Daily Record.

Stephen Lowe, group communications director at Just Group, revealed: “About 10 per cent of claimants did not get their full entitlement in 2024/25 compared to 8 per cent the previous years. The amount being underclaimed was also higher at £100 million compared to £80 million previously.”

He further noted: “There are about 1.4 million claimants overall, suggesting 140,000 households missed out on an average of about £700, which is a significant sum for those struggling on low incomes.”

Lowe clarified that the DWP attributed these underpayments to claimants’ failure to provide accurate or current information, primarily in three key areas:

• a reduction in financial assets
• a non-dependant moving out
• a fall in income from private pensions

Mr Lowe added: “It’s important to understand what changes in circumstances can impact the amount of benefit being paid because the system relies on accurate information. Of course, a far bigger issue is that of people failing to claim at all.”

Highlighting the gap in benefit uptake, he revealed: “Pension Credit is a good example. Only 65 per cent of those eligible received it in 2022/23 with about 760,000 households missing out on an average of £1,900 a year or £1.5bn in total.”

He encouraged those receiving benefits to ensure they keep their details up to date and to review regularly the information they’ve given.

Despite this, he also issued a warning regarding the dangers of overclaiming, saying: “You could be eligible for more, but you also must guard against accidentally overclaiming and then having to repay the money later which can cause serious hardship.”

The DWP has reported that in the last year, 77 per cent of all fresh Pension Credit applications were processed within their target of 50 working days from submission to receiving a decision letter. Pensions Minister Torsten Bell said: “The current mean processing time stands at 52.8 working days,” which translates to just beyond 10 weeks.

For those seniors applying afresh on a restricted income, there is an expectation that their first payment along with any retrospective money should arrive by July’s end, especially if they no longer qualify for this year’s annual Winter Fuel Payment.

Elderly individuals who successfully apply for Pension Credit before September will qualify for the 2025/26 Winter Fuel Payment.

There’s a common misconception among some elderly people that owning their home or having savings disqualifies them from this means-tested benefit. However, even a modest grant of just £1 per week can unlock additional support, including help with housing costs, heating bills and Council Tax.

Who is eligible for Pension Credit?

Pension Credit comes in two parts – Guarantee Credit and Savings Credit.

To qualify for Guarantee Pension Credit, you must have reached State Pension age, which is currently 66. Your weekly income also needs to be below the minimum amount the UK Government considers necessary for living.

This stands at £227.10 for a single person and £346.60 for a couple. These figures could be higher if you’re disabled, a carer or have certain housing costs.

Savings Credit is only available if you reached State Pension age before April 6, 2016, or if you have a partner who reached State Pension age before this date and was already receiving it.

How to determine eligibility for Pension Credit

Elderly people, or their friends and family, can quickly check eligibility and get an estimate of potential benefits using the online Pension Credit calculator on GOV.UK here.

Alternatively, pensioners can contact the Pension Credit helpline directly to make a claim on 0800 99 1234 – lines are open from 8am to 6pm, Monday to Friday.

More details about claiming Pension Credit can be found on GOV.UK here.