Around 850,000 UK pensioners could be missing out on a total £1.7bn of pension credit, analysis by Just Group has found.

Just Group suggested that a third of pensioners who are entitled to claim are failing to do so, and missing out on an average £1,900 a year from the State, according to the latest government figures.

Pension credit, which is separate from the state pension, provides low-income earners with extra money to help with their living costs. Just Group, however, has warned that the current cost of living crisis has increased the need for pensioners to make sure they are aware of their benefits entitlement.

Commenting on the release of the DWP’s estimates of benefits take-up, group communications director at Just Group, Stephen Lowe, said: “Pension Credit is designed to top-up the incomes of the poorest pensioners but a third of those entitled to claim – about 850,000 families – are failing to claim.

“There is up to £1.7bn of cash that is not being received, an average of around £1,900 a family. The human story to this is the hundreds of thousands of people who are struggling to make ends meet who may not realise financial help is available or do not know how to navigate the system.”

Lowe also highlighted that pensioners are facing steep increase in inflation which could rise to over 7% this year, according to the Bank of England. This rise would outstrip the one-off ‘double lock’ state pension increase of 3.1% that is coming in April.

“As the cost of living crisis starts to bite, and with pensioners heavily impacted by rocketing energy bills, it is more important than ever that people who may be struggling for income are aware of the benefits available to them and how they can claim,” Lowe added.

Share Story: