What is Pension Credit? How much is it and application eligibility – as 1,000s missed out on £300 heating help

New government figures have exposed the full scale of the shortfall for the first time, showing that around 830,000 pensioner households went without the Winter Fuel Payment last year after it was temporarily linked to Pension Credit, a benefit that many eligible people still don’t claim. 

The change, introduced and later reversed for this year, meant only those receiving Pension Credit automatically qualified for the £200–£300 payment. 

But with the benefit’s take-up rate stuck between 61 per cent and 66 per cent, hundreds of thousands of low-income retirees were effectively frozen out of support at the height of the energy crisis.

Where pensioners missed out the most

For the first time, the Department for Work and Pensions (DWP) has published a regional breakdown of Pension Credit take-up.

It shows that the South West had the lowest rate in the country, with just 55 per cent of eligible pensioners receiving it. The North East fared best, with a 71 per cent take-up rate.

 At local authority level, the gap is even starker. Cotswold District had the lowest uptake at just 44 per cent, while Tower Hamlets in London saw the highest, at 83 per cent.

The figures reveal deep regional and social inequalities in how well pensioners are being reached, particularly in rural areas, where older people are more likely to be isolated or lack digital access to claim online.

Why claiming Pension Credit matters

While it is no longer tied to unlocking the Winter Fuel Payment, Pension Credit remains one of the most valuable yet underclaimed benefits in the UK.

It tops up income to at least £227.10 a week and can unlock other help, including Housing Benefit, council tax reductions, and free TV licences.

The DWP says around 1.4 million pensioners currently receive it, but if every eligible household claimed, an extra £4,000 a year could be going into the pockets of some of Britain’s poorest older people.

Pensions Minister Torsten Bell said: “Pension Credit is a simple way to give those who need it the most some extra support with bills or a free TV licence.

“I’d urge anyone who thinks they, or someone they know, might qualify to take a few minutes to check and apply.”

How to check if you can Pension Credit claim

You can find out if you qualify for Pension Credit in minutes:

• You’ll need your National Insurance number, income details, and information about your savings.

• Claims can be backdated by up to three months, so it’s worth checking even if your circumstances have recently changed.