Less than three quarters (73%) of the total amount of pension credit that could have been claimed in the 2022 financial year was not done so, the Department for Work and Pensions (DWP) has found.

The DWP has stated that the total not claimed was £2.1bn, equating to around £2,200 per year for each entitled family.

The Government department reported that this is four percentage points lower than the 2020 financial year, where 77% of the total amount of credit was claimed.

Head of retirement analysis at Hargreaves Lansdown, Helen Morrissey, said: "Pension credit boosts the income of the poorest pensioners and acts as a valuable gateway to other benefits, such as help with heating bills and NHS treatment. If you’re over 75, you’re also entitled to a free TV licence.

"Most notably, claiming pension credit also means you are entitled to a series of cost-of-living payments, which can make a huge difference in these difficult times. Quite simply, not claiming Pension Credit can leave you poorer to the tune of thousands of pounds.

"These are enormous sums of money that could really boost people’s income in retirement, and it is vitally important that those who think they may be entitled to support check to see if they are entitled."

Furthermore, the DWP has found that over six in 10 (63%) families who are entitled to pension credit received it in the 2022 financial year.

In the 2020 financial year, two thirds (66%) of families claimed their pension credit, meaning that the number of families making these claims has dropped by 3% over the past two years.

The DWP has said that the decline in the number of cases and the amount claimed is potentially a result of the changes made to how the information was gathered during the pandemic, with up to 880,000 families who were entitled to receive pension credit not claiming it.

Head of personal finance at AJ Bell, Laura Suter, added: "The cost-of-living crisis has hurt many household’s budgets, but particularly pensioners, who tend to spend more of their money on heating and eating – which have seen some of the biggest surges in price. We know that more people are claiming pension credit, with a freedom of information request by AJ Bell showing that the number of claims made in the 2022-23 tax year was more than double the previous year.

"Pension credit claims can also be backdated by up to three months, meaning those who claim now could get an extra top-up in their first payment. But receiving the pension credit you are owed won’t happen automatically – it’s up to you to make a claim if you think you are eligible. You can check your eligibility to claim pension credit online, over the phone or by post. If you’re unsure how to go about completing your application, organisations like Age UK and Citizens Advice can help."

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