The Department for Work and Pensions (DWP) has revealed that last year, 760,000 families who were entitled to receive pension credit did not claim it.
Claims for pension credit have shown signs of a jump recently, as it has become linked to winter fuel payments.
Figures released in September showed a rise in pension credit claims in the weeks after the Government announced restrictions on who would receive winter fuel payments.
This started after July 29, when Chancellor Rachel Reeves announced the winter fuel allowance for pensioners would be limited to only those claiming pension credit or other means-tested benefits.
Ms Reeves announced the squeeze as part of a series of measures aimed at filling what she called a £22 billion “black hole” in the public finances.
It is expected to reduce the number of pensioners in receipt of the up to £300 payment by 10 million, from 11.4 million to 1.5 million.
Up to £1.5 billion of available pension credit went unclaimed in the financial year ending 2023, a decrease from the estimate of up to £2.0 billion that went unclaimed in the financial year ending 2022, according to the figures covering Britain, placed on the DWP website.
Around two-thirds (65%) of those entitled to pension credit claimed the benefit in the financial year ending in 2023, which was an increase from 63% in 2022.
Helen Morrissey, head of retirement analysis, Hargreaves Lansdown, said: “Boosting take-up of pension credit has been a major problem that has proven tricky to crack, with previous campaigns being derailed by the pandemic.
“However, there are signs that progress is being made, with take-up creeping up to 65% from 63% the previous year.
“It was during this period that pension credit claimants were entitled to payments designed to help see them through the punishing cost-of-living crisis. However, given the scale of the crisis, it’s surprising that take-up didn’t increase far more.
“Looking through more recent data shows that we may be in line for more of an uptick though. The recent restriction of the winter fuel allowance to people on benefits such as pension credit has garnered many headlines, with people urged to check if they can put in a claim.”
She added: “However, the scale of the challenge is enormous, with more than 750,000 families who could receive pension credit not claiming it.
“Pension credit is a hugely valuable benefit that not only tops up income but also acts as a gateway to other support such as a free TV licence for the over-75s as well as help with council tax.
“The winter fuel payment will also be a major help as we head into the winter months with energy bills on the rise. Anyone who thinks they or a loved one could be entitled should put in a claim.”
