DWP benefit's 'hidden perks' could see you get £12,677

People are leaving £1.7 billion on the table by not claiming Pension Credit, according to consumer money experts, as figures show that 850,000 people eligible for Pension Credit aren’t taking advantage of the scheme, potentially missing out on an extra £2,677 a year in payments, and up to £10,000 in additional benefits. This could be a vital lifeline for many retirees.

Fiona Peake, personal finance expert at Ocean Finance, said: “Pension Credit is a means-tested benefit designed to top up income for retirees on low incomes. Yet, it’s one of the most under-claimed benefits in the UK. Pension Credit is divided into two parts. Guarantee Credit tops up your weekly income to a minimum level—currently £218.15 for a single person or £332.95 for couples, while Savings Credit provides a small additional payment for those who have saved towards their retirement. This part is only available to those who reached State Pension age before April 6, 2016.

"While the financial boost alone is great, the additional perks available are where the real value lies.”

The Hidden Perks

“The total value unlocked by Pension Credit could be around £10,000 annually per person. These include:

• Council Tax Reductions: Potential savings of £1,000+ annually, depending on your local council.

• Cold Weather Payments: £25 for each seven-day period of freezing temperatures to help with heating costs.

• Free NHS Dental Treatment and Prescriptions: These could save you hundreds each year.

• Free TV Licence for Over-75s: A saving of £159 annually.

• Housing Benefit: This could help towards your rent, easing the strain on your monthly outgoings.”

Fiona said: “Many people assume that claiming Pension Credit is a complicated process or that they won’t qualify because they have savings or a small private pension. In reality, it’s a straightforward process, and the rules are more generous than you might think. It’s always worth checking; even if you only receive a small amount of Pension Credit, it could unlock other support worth thousands of pounds."

How to Check if You’re Eligible for Pension Credit

“To qualify for Pension Credit, you must:

• Be over the State Pension age (currently 66)

• Have a weekly income below £218.15 and £332.95 respectively

"Even if your income is slightly above these amounts, you might still qualify for extra support, especially if you have a disability, care for someone, or have certain housing costs. You can use the Government’s Online Calculator or call the pension credit helpline to check your eligibility.”

Fiona said: “The cost-of-living crisis has hit older people hard. Aside from the immediate financial relief, claiming Pension Credit can help protect you against rising costs. With the energy price cap increasing once again at the start of January and food inflation remaining stubbornly high, claiming what you’re entitled to is a smart move. If you think you might qualify – or know someone who could – take five minutes to check.

"It’s also worth exploring other money-saving options, like reviewing energy bills, switching providers, or looking into budgeting tools to help make every penny count.”