The number of Brits in the UK claiming Pension Credit has dropped – which pension experts have described as "deeply worryingly".

According to the latest data from the Department for Work and Pensions (DWP) only six in 10 people entitled to Pension Credit actually claimed it in 2022. The DWP's data shows that an estimated 63% of people entitled to the benefit received it last year - this is down from 66% in 2020.

It also revealed that only 73% of the total amount of Pension Credit that could've been claimed was claimed. This was four percentage points lower than in 2020 and it meant that eligible individuals missed out on up to £2.1billion worth of financial support - with each claimant missing out on around £2,200.

Previously, the DWP estimated that around 850,000 eligible individuals were missing out on Pension Credit, however, today's figures increase that number to around 880,000.

Sir Steve Webb, former pensions minister and now a partner at consultants LCP said the drop in Pension Credit take up was "deeply worrying". Sir Steve particularly noted the lower take up in "younger pensioners" with the take up level in those under 75 dropping to 60% from 68% two years ago.

He said: "Despite a range of publicity campaigns, the message is simply not getting through. Pension Credit is a vital way of ensuring that people in retirement have a decent minimum standard of living. It seems likely that the link between Pension Credit and free TV licences for older pensioners has helped to sustain levels of take-up in that group, but the drop amongst younger pensioners must prompt urgent action."

Pension Credit is a benefit for people who have reached state pension age and are on a low income. If you’re eligible to claim it, your weekly income will be topped up to £201.05 a week, or to £306.85 if you’re in a couple.

But as well as giving you extra cash, Pension Credit can also give you money off essential bills and housing costs such as Council Tax. You are also entitled to receive a free TV licence if you’re over 75, the Warm Home Discount worth £150 each year, Cold Weather Payments, Housing Benefit, free dental treatment and vouchers for glasses or contact lenses. The DWP says those who claim Pension Credit are on average £3,500 a year better off.

Recently, the DWP launched Pension Credit Week of Action in June. This week is all about raising awareness of Pension Credit eligibility and encouraging people to make a claim. This week was supported by a high number of charities as well as celebrities including the late Len Goodman and Money Saving Expert founder Martin Lewis.

Sir Steve added: "Many of those who do not take-up pension credit will be known to the Government, for example through claiming other benefits such as housing benefit. Systematic use of the data Government already holds is the best way to tackle this problem rather than one-off publicity campaigns”.

A DWP spokesperson told the Mirror: “The latest published take-up estimates cover the financial year ending 2022. Since April 2022, our extensive communications campaign has helped drive Pension Credit claims to an all-time high, with applications up by around 75% in the 12 months to May 2023 compared to the same period last year.

“Alongside this, we’ve supported pensioners with the biggest State Pension increase in history this year, have committed to the triple lock, and are providing pensioners with up to £600 to help with heating costs this winter.”

Who is eligible for Pension Credit?

Pension Credit is available to anyone over the state pension age living in England, Scotland or Wales, you also need to be on a low income. However, you can receive Pension Credit even if you have other forms of income, extra savings or your own property.

According to DWP guidelines, you'll be eligible for Pension Credit if:

  • You and your partner have both reached State Pension age (66 years old or above)
  • One of you is getting Housing Benefit for people over State Pension age

If you have less than £10,000 in savings then your Pension Credit will not be impacted, however, if your savings go over this threshold support will be deducted.

How much do you get with Pension Credit?

Pension Credit comes in two parts and you may be entitled to one or both elements, depending on your circumstances. The Guarantee Credit element of Pension Credit tops up your weekly income to £201.05 if you’re single and £306.85 if you have a partner.

Your income needs to be below these amounts to claim Guarantee Credit. In some cases, you might still be eligible if you have a higher income and you have a severe disability, you're a carer or you have to pay housing costs, such as a mortgage.

If you reached the state pension age before April 6, 2016, or you have savings or a second pension, you may be eligible for the Savings Credit element of Pension Credit. These tops could give you up to £15.94 if you're single and £17.84 if you're a couple. You might also get additional payments if you’re a carer, severely disabled, or responsible for a child or young person.

How to claim Pension Credit

You can apply for Pension Credit online on the Gov.uk website, by calling 0800 99 1234, or by printing out and filling in a paper application form. You can get a friend or family member to ring for you, but you'll need to be with them when they do.

You will also need the following information on you before applying:

  • Your National Insurance number
  • Information about any income, savings and investments you have
  • Information about your income, savings and investments on the date you want to backdate your application to (usually three months ago or the date you reached state pension age)
  • Your bank, building society or credit union account details