State pensioners handed £3,900 lifeline and many don’t know why

Between July 2024 and July 2025, applications rose by 44 per cent, with more than 98,000 additional claims submitted

State pensioners are being handed a £3,900 a year lifeline but many don’t know. A surge in Pension Credit claims means thousands are set for a major boost worth almost £3,900 a year from the Department for Work and Pensions ( DWP ).

Between July 2024 and July 2025, applications rose by 44 per cent, with more than 98,000 additional claims submitted compared with the previous year, taking the total to 320,300. Of these, 181,100 claims were approved, a 46 per cent rise on the year before.

Pension Credit is worth £3,900 and unlocks other benefits and perks like free TV licences from the BBC and Royal Mail redistribution costs.

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Stephen Lowe, group communications director at retirement specialist Just Group, said: “This remains a drop in the context of the estimated 700,000 families eligible for Pension Credit but not claiming it.

“Many people may simply be unaware of the benefit, not know how to claim, or assume they are not eligible if they own their own home. This year’s research among people over 66 found that four in ten homeowners and one in seven renters had never checked their benefit entitlement.

“If you think you, or a member of your family, may be entitled to Pension Credit there are a range of free resources to help check eligibility.

“The government website has links to useful third-party calculators (https://www.gov.uk/benefits-calculators) while other good sources are Citizens Advice, local councils and charities.”

Mr. Lowe said: “With the link between Pension Credit and Winter Fuel Payments, it is vital that pensioners do not miss out.”

The personal finance expert went on and also added: “A range of free resources, including government benefit calculators and advice from local councils or charities, can help people ensure they are claiming everything they are entitled to.

“For more information or to check eligibility, visit the government website or contact the Pension Service helpline at 0800 99 1234.”