The DWP said that it received 211,125 Pension Credit applications in 2025/26 – a 34% decrease or 109,910 fewer applications than 2024/25.
Through the 2025/26 period, it also cleared and awarded 138,165 Pension Credit claims – a decrease of nearly a quarter (24% or 42,805 fewer claims) compared to 2024/25.
David Brooks, Head of Policy at Broadstone, commented: “The sharp rise in Pension Credit claims following the Government’s decision to link Winter Fuel Payments to Pension Credit eligibility shone a helpful spotlight on just how many retirees were missing out on valuable support to which they were entitled. However, as the issue declined in salience, claims activity is now falling back towards lower, more normal levels and there is a risk that awareness once again fades.
“However, the latest figures show there are still up to 910,000 families who were entitled to Pension Credit that are not claiming it, missing out on up to £2.5 billion of financial support. This matters because Pension Credit is specifically targeted at lower-income pensioners and can be worth thousands of pounds every year. Moreover, it often acts as a gateway to a much wider package of support, including help with energy bills, housing costs and council tax.
“All of this could come back into sharper focus if geopolitical tensions once more drive up living costs, inflationary pressures and energy prices.
“The interim report from the Pensions Commission was another timely reminder of the challenge of retirement adequacy that the UK is facing. It highlighted the financial struggles that many people are likely to face in later life and the importance of maximising all the support and resources available to them.
“Ensuring pensioners understand and claim their entitlements will become an increasingly important part of supporting retirement incomes, particularly as cost pressures remain elevated and more people move into retirement with modest defined contribution savings.”
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