Experts are warning that thousands of pensioners are “missing out” on an extra £3,500 a year through Pension Credit.
A recent Freedom of Information (FOI) request the number of benefit claims made to the Department for Work and Pensions (DWP) has more than doubled in the last tax year.
Nearly 250,000 Pension Credit claims were made in 2022/23 compared to around 111,000 the year before.
Some 143,000 claims were successful last year compared to 82,000 in 2021/22 and 95,000 were rejected by the DWP.
Previously, the Government department has projected 850,000 state pensioners are failing to claim Pension Credit.
As it stands, the benefit is worth around £3,500 a year on average to those who are eligible, according to the DWP.
Pension Credit is reserved for those on the state pension who are on low income and are in need of extra financial support.
As the cost of living continues to be an issue for many, the Government has urged older people to check their eligibility.
However, experts are sounding the alarm that the DWP benefit is not going far enough as retirement incomes continue to be squeezed.
Tom Selby, the head of retirement policy at AJ Bell, explained: “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 finance expert highlighted how the ongoing cost of living crisis has led to a “greater urgency” when it comes to filing a Pension Credit claim.
This is due to the fact the DWP benefit is a getaway to other benefits, including cost of living payments and the free TV licence for older Britons.
Mr Selby added: “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.”
