Pension Credit: Why Are We Still Here?

A recent release of statistics by the DWP highlighted that the number of Pension Credit claimants has fallen across the board. It comes in the wake a number of moves by the government to boost the uptake of Pension Credit. Think for example of the government’s plan to restrict the Winter Fuel Payments to pensioners in receipt of Pension Credit back in the Summer of 2024. More recently, the government have announced fresh plans to try and boost the number of pensioners receiving Pension Credit as people across the country to continue to grapple with cost of living pressures.

The government estimate that around 900,000 eligible pensioners are not in receipt of Pension Credit which can act as a vital source of support for pensioners living on low incomes. Pension Credit itself comprises two elements; a ‘guarantee credit’ (for those whose income is assessed as being below a certain threshold) which can top their income up to a certain amount, as well as a ‘savings credit’ (for those who might only have a modest amount of savings or income, though this is only available to people who reach State Pension age before April 6th 2016). Higher amounts can be paid to those in certain circumstances, such as if you have a disability or caring responsibilities. Crucially, Pension Credit can act as a passport to various other kinds of welfare support such as council tax reductions, help with housing costs, help with certain NHS costs and even free TV licences. Pension Credit isn’t just about the money itself, it’s the benefits that go along with it that can also help an older people on low-incomes live their life with dignity and security.

Why might this be the case, even after these repeated attempts by the government to boost the uptake of Pension Credit? Its important to say that the DWP don’t themselves publish data on why people don’t claim Pension Credit. With that said, there are certainly some inferences we can make.

One argument put forward is that awareness campaigns can often focus on online promotion, something that older people may (somewhat stereotypically) not engage with. More recent targeted campaigns have highlighted the effectiveness of posting information. A drive to boost Pension Credit uptake in Autumn 2025 posted letters to 2000 eligible Pension Credit recipients informing them they could potentially make a claim. In an increasingly ‘online’ world, where digital access is prioritised, do we run the risk of leaving behind vulnerable older people for the sake of an incorrect presumption that things need be ‘online by default’?

Unfortunately, incorrect myths and rumours persist around the eligibility for Pension Credit. Many people for instance think they won’t be eligible for it on the basis of savings. Whilst its true that savings over £10,000 might reduce the amount of Pension Credit you receive, truthfully, there is no hard limit that applies in respect of savings; its about the individual circumstances. Similarly, home ownership on its own isn’t a barrier to claiming Pension Credit. But these myths contribute to the perceptions people have around Pension Credit and ultimately affect the support they do (or in this case, don’t) receive.

Society Matters are proud to say we are launching a new full-day course on ‘Benefits for Older People.’ The course provides a comprehensive introduction to the UK welfare system as it relates to older people. In it, we’ll explain the eligibility, application process and rates of current welfare benefits that apply to older people including the state pension, Pension Credit, Winter Fuel Payment or Attendance Allowance (as well as many others). The course also covers in detail the extra support available to those who receive Pension Credit (or other benefits) as well as how changes in circumstances like going into hospital or residential care can impact on a person’s benefit entitlement.

If you’d like to find out more, get in touch with a member of the team at hello@societymatterscic.com.