Millions of Britons may be losing out on thousands of pounds annually after turning 66 due to one crucial DWP benefit. And ’embarrassment’, misunderstanding of eligibility criteria and widespread lack of knowledge are reportedly serving as barriers. A recent report has highlighted the misconceptions preventing pensioners from accessing their rightful support.

Pension Credit offers essential assistance to people above state pension age living on limited incomes. It delivers additional financial help and other benefits such as reduced council tax, complimentary TV licences for those aged 75 and above, and assistance with NHS dental costs.

A new Verian report identified that the primary obstacle preventing people from claiming their entitlement was the mistaken belief that they weren’t eligible for various reasons. Some commonly held, but incorrect, assumptions included thinking PIP, savings or a partner’s employment status would disqualify them.

The primary eligibility requirements for Pension Credit are that you must be above state pension age, residing in England, Scotland or Wales, and have a low income, typically capped at £227.10 weekly for people and £346.60 weekly for couples.

However, you may still be eligible if your income exceeds these limits and you have a disability, savings, housing expenses or caring responsibilities.

You can possess up to £10,000 in savings and investments without impacting your Pension Credit eligibility. Every £500 above this limit will be calculated as £1 weekly toward your income assessment, meaning you can still claim the benefit with savings exceeding this amount.

The report identified two other primary barriers preventing people from accessing their entitlements: lack of awareness, with many stating they had ‘never heard’ of Pension Credit and its associated benefits.

Another frequent obstacle was the stigma surrounding benefit claims and state assistance, which made people hesitant to apply. This leads people to feel ‘too proud’ and ’embarrassed’ to seek support earlier.

DWP analysis from last October revealed that fewer than 70% of eligible pensioners in England, Scotland and Wales were claiming their Pension Credit entitlement. Those who had submitted claims were receiving an average of £82.71 per week or £4,300 annually.

Pension Credit provides additional financial assistance to help with living expenses if you’re over State Pension age and on a low income. Pension Credit can also assist with housing expenses such as ground rent or service charges.

Even if you qualify for Pension Credit but may not receive direct payments—for instance, if your savings are too high—submitting a claim could still be worthwhile to access the additional benefits it provides.

The report also found that among other common reasons eligible people didn’t claim Pension Credit was a belief that they were financially stable.

One recipient over 75 who qualified for the benefit but hadn’t claimed it explained: “With the position I’m in, if there’s a fund out there for more deserving people, they should be the one to receive it… if they need it more than me, I think they should have priority.”

Some expressed skepticism about receiving government aid. One new Pension Credit recipient over the age of 75 shared: “I was wary of claiming for it because I didn’t know if it would affect my pension… if the government gives you some money, they usually take it off you somewhere else.”

For more on Pension Credit, visit the gov.uk web page.