- The number of Pension Credit claims made to the Department for Work and Pensions (DWP) more than doubled in the most recent tax year, new figures released under the Freedom of Information (FOI) Act reveal
- Almost a quarter of a million Pension Credit claims were made in 2022/23 compared to approximately 111,000 in the previous tax year
- While 143,000 claims were successful in 2022/23 (compared to just under 82,000 in 2021/22), around 95,000 claims were refused by the DWP (compared to around 29,000 in 2021/22)
- The DWP has previously estimated up to 850,000 eligible households fail to claim Pension Credit each year
- Pension Credit is worth around £3,500 a year on average to those who claim it, according to the DWP
- Pension Credit also unlocks various other benefits – including cost-of-living payments targeted at low-income households
Tom Selby, head of retirement policy at AJ Bell, comments:
“Pension Credit has historically been chronically underclaimed by those who are eligible, with hundreds of thousands of households potentially missing out on thousands of pounds of valuable extra income per year. This is particularly tragic because those who are eligible for Pension Credit are likely to be among the poorest households in the UK.
“The rising cost-of-living has brought greater urgency to the issue, in particular because a successful Pension Credit application automatically triggers cost-of-living payments worth hundreds of pounds, as well as acting as a gateway to other benefits like free TV licenses and help with heating costs.
“In this context, the fact Pension Credit claims have more than doubled in the space of a year is both heartening and depressing. Heartening because it means over 60,000 more people received Pension Credit and the benefits that go with it in 2022/23, but depressing because it shows just how much retirees are struggling as a result of price rises.
“The fact almost 100,000 Pension Credit claims were turned down in 2022/23 is also deeply worrying, as these households may have been relying on receiving the benefit – not to mention the £600 of cost-of-living payments still to be distributed this year – to make ends meet. If your Pension Credit claim has been turned down you may still be entitled to other benefits, so it’s worth checking to see if you are eligible for other forms of financial help.”
| Tax Year | Claims made | Claims granted | Claims refused |
| 2017/18 | 98,689 | 85,880 | 11,303 |
| 2018/19 | 91,987 | 81,838 | 9,797 |
| 2019/20 | 94,892 | 84,164 | 10,370 |
| 2020/21 | 128,135 | 95,001 | 32,646 |
| 2021/22 | 110,866 | 81,519 | 28,834 |
| 2022/23 | 240,562 | 143,031 | 95,515 |
Source: DWP following an FOI request submitted by AJ Bell. Data correct as at 19 July 2023. DWP confirmed there will always be some claims awaiting a decision, meaning the ‘Claims made’ figures will always be higher than the sum of those granted and refused.
Background
Pension Credit is a key benefit provided by the state which often tends to go unclaimed by lower income retirees.
In 2023/24, if you are over State Pension age (66), single and your income is less than £201.05 a week then Pension Credit will top you up to that amount. For a couple, the combined income figure is £306.85.
In relation to Pension Credit, your income includes your State Pension, other pensions, employment or self-employment earnings and most social security benefits. As with the State Pension, it is up to you to claim Pension Credit.
For those who are entitled to receive it, claiming Pension Credit is also really important because it acts as a gateway to other benefits, such as help with heating costs, housing benefit, dental treatment and free TV licenses (if you are aged 75 or over).
In addition, those who claim Pension Credit currently qualify for cost-of-living payments from the government.
The government has made concerted efforts to boost Pension Credit take-up and recently launched a trial which will see 2,000 people the DWP believes could be entitled to claim the benefit receiving letters encouraging them to make a claim.
