Thousands of older people across the UK are missing out on vital financial support, with new research revealing a growing issue around pensioner benefits not claimed.
As the cost-of-living crisis continues to squeeze household budgets, experts say confusion and lack of awareness are leaving many pensioners worse off than they need to be.
A recent report by retirement specialist Just Group found that nearly three-quarters of eligible pensioner homeowners are not claiming benefits, despite qualifying for extra income that could make a real difference to day-to-day living.
What does the report say about pensioner benefits not claimed?
The Just Group research shows that more than 40% of pensioner homeowners qualify for at least one means-tested benefit. However, 74% of those eligible are not claiming anything at all.
On average, pensioners who miss out could be losing £1,339 per year, based on current benefit rates. For people living on fixed incomes, this sum could cover annual council tax bills, energy costs, or essential food shopping.
David Cooper, Director at Just Group: “Our survey once again reveals what appears to be an epidemic of pensioner homeowners missing out on income they are entitled to claim.”
Which benefits are pensioners most likely to miss?
Yes. Pension Credit remains the most commonly unclaimed benefit. According to estimates from the Department for Work and Pensions (DWP), nearly one million pensioners are missing out on either Guarantee Pension Credit, Savings Credit, or both.
Guarantee Pension Credit tops up weekly income to a minimum level and also unlocks other support, including:
- Council Tax Reduction
- Free TV licence (for over-75s on Pension Credit)
- Cold Weather Payments
- Help with housing costs
- Support with NHS charges
Despite these added benefits, more than two-thirds of eligible pensioners are not claiming Pension Credit.
How much money is being left unclaimed?
The table below summarises the key benefits pensioners are missing out on, based on the Just Group findings and DWP data.
| Benefit type | Percentage of eligible pensioners not claiming | Average annual value | Why it matters |
|---|---|---|---|
| Pension Credit (Guarantee & Savings) | Over 66% | £1,300+ | Boosts weekly income and unlocks other benefits |
| Council Tax Reduction | 76% | £1,000+ | Directly reduces council tax bills |
| Underpaid benefits (already claiming) | Around 14% | £1,162 | Claimants receiving less than their entitlement |
| Worst-case identified example | N/A | £5,877 | Weekly shortfall of £113.03 |
Figures based on Just Group research and DWP estimates, current at the time of reporting.
Why are council tax reductions being overlooked?
Council Tax Reduction is one of the most underclaimed forms of support. Just Group found that only 24% of eligible pensioners are claiming it, even though:
- The average new claim exceeds £1,000 per year
- Savings are applied directly to council tax bills
- The support does not need to be repaid
Many pensioners wrongly believe home ownership or modest savings automatically disqualify them.
Are some pensioners underpaid even when they claim?
Yes, and the scale is worrying. The report shows that around one in seven pensioners who do claim benefits are underpaid.
On average, they miss out on an extra £1,162 per year, often due to outdated information or incorrect assessments.
One real example uncovered by the research revealed a pensioner losing £113.03 per week, amounting to £5,877 a year.
Why aren’t these benefits paid automatically?
Most pensioner benefits must be actively claimed, which creates barriers for older people who may:
- Be unaware of their eligibility
- Find forms difficult to complete
- Assume savings exclude them
- Feel embarrassed about claiming support
David Cooper, Just Group: “Benefits like Pension Credit must be claimed. Taking a few minutes to check eligibility could unlock a substantial boost to annual income.”
How does this affect pensioners during the cost-of-living crisis?
With food prices, energy bills, and council tax still high, missing out on more than £1,300 a year can push pensioners into financial stress.
UK charities have warned that many older people are cutting back on heating, meals, and social contact. Those not claiming Pension Credit may also miss automatic access to Winter Fuel Payments and other cost-of-living support.
What should pensioners or their families do now?
Experts advise pensioners, carers, and family members to:
- Use the GOV.UK benefits calculator
- Call the Pension Credit claim line
- Contact local council benefits teams
- Seek independent advice from Age UK
