75% of Pensioners Miss Out on £1,300 They’re Owed, Report Finds

Hundreds of thousands of pensioners are failing to claim state support they are entitled to, with new research suggesting up to three quarters of eligible households are missing out on an average of £1,339 a year.

Figures from retirement specialist Just Group show that more than four in ten pensioner homeowners, around 42 percent, qualify for at least one government benefit. Yet 74 percent of those eligible are not claiming what they could receive, despite many living on low incomes.

The report points to a widespread lack of awareness, with many older homeowners unaware that support is available or assuming they do not qualify.

David Cooper, director at Just Group, said the findings highlighted a persistent and worrying trend.

“Our survey once again reveals an epidemic of pensioner homeowners missing out on income they are entitled to claim,” he said. “About three in four eligible households are failing to claim any benefit at all. These are low income pensioners who are likely struggling with the cost of living.”

Benefits going unclaimed

The unclaimed support includes Pension Credit, both the guarantee and savings elements, council tax reductions and Universal Credit.

Council tax support is one of the most commonly missed. Fewer than one in four eligible pensioners, just 24 percent, are claiming it, despite the average new claim being worth more than £1,000 a year.

Previous figures from the Department for Work and Pensions show that close to one million pensioners are missing out on Pension Credit alone.

“Guaranteed Pension Credit is the main means tested benefit for older people and acts as a gateway to other help, such as Winter Fuel Payments,” Mr Cooper said. “Yet more than two thirds of those eligible are not claiming it.”

The report also found that among pensioners missing out, 62 percent were failing to claim one benefit, 12 percent were missing two, and 5 percent were missing three separate entitlements.

Even among those who had made a claim, nearly one in seven, around 14 percent, were receiving less than they were entitled to. On average, these pensioners were missing out on an additional £1,162 a year, with one individual losing more than £5,800 annually.

Cold weather payments highlight urgency

With the first Cold Weather Payments of the winter now triggered, former pensions minister Steve Webb has urged older people on lower incomes to check their entitlement and seek help if needed.

Cold Weather Payments provide a £25 lump sum when temperatures in a local area fall below zero for seven consecutive days. However, the payment is only available to people already receiving qualifying benefits such as Pension Credit or Universal Credit.

Mr Webb said many pensioners miss out simply because they never make the initial claim.

“Some older people are too proud to claim, but Pension Credit is a key gateway benefit,” he said. “It unlocks help such as Cold Weather Payments, the Warm Home Discount, support with rent and council tax, and a free TV licence for over 75s.”

Read More: State Pensioners Pay £0 Tax if No Other Income, Confirms Chancellor

Government estimates suggest that in 2023 and 2024, around 38 percent of pensioners entitled to Pension Credit, roughly 820,000 people, did not claim it. Even with an increase in claims last year, hundreds of thousands are still thought to be missing out.

The good news, Mr Webb said, is that Pension Credit claims can be backdated by up to three months, meaning households can still receive Cold Weather Payments that were triggered before they applied.

How to claim

Pension Credit is not paid automatically and must be claimed. Applications can be made online via the government website, by phone on 0800 99 1234, or by completing a paper form.

Mr Webb, now a pension consultant at LCP, said claiming could make a significant difference as energy bills rise.

“Cold weather leads many older people to turn up the heating, but the cost can be frightening,” he said. “Claiming Pension Credit is one of the simplest ways to boost weekly income and qualify for help with energy bills when temperatures are at their lowest.”

More than a million pensioners already receive Pension Credit, but experts warn that many more could be eligible. A quick check, they say, could unlock thousands of pounds a year for households that need it most.