New research from retirement specialist Just Group reveals that the majority of pensioner homeowners eligible for key benefits are not claiming the support they are entitled to, missing out on significant financial assistance.
The 15th annual State Benefits insight report highlights that 79% of those eligible for benefits in 2024 failed to claim anything, while a further 9% were receiving less than they should, leading to average losses of £1,807 and £2,915 per year, respectively.
Stephen Lowe, group communications director at Just Group, said: “Despite the focus on benefits as a result of the government’s decision to axe Winter Fuel Payments to millions, our survey once again shows the scandalous scale of the underclaiming problem.
“Of the one-third of pensioner homeowners eligible for benefits, the proportion failing to claim remains very high while the amounts unclaimed are larger than for more than a decade. Figures for Pension Credit – the main means-tested benefit for older people – are particularly worrying because it is a gateway to other benefits such as Winter Fuel Payment.”
The research shows that of those interviewed, a third were eligible for at least one key benefit. Yet, the low take-up rates suggest a continuing trend of underclaiming. For Guaranteed Pension Credit, only 10% of eligible households were claiming, meaning many missed out on an average of £1,391 in additional income annually.
Among those entitled to Savings Pension Credit, just 25% were claiming, resulting in an average annual loss of £933 for non-claimants. Council Tax Reduction was another overlooked benefit, with only a quarter of eligible households claiming it, leading to an average loss of £1,067 per year.
One notable case highlighted by the report involved a couple in Suffolk in their mid-70s who were initially claiming nothing. After receiving advice, they were found to be entitled to £145.37 per week in benefits, which included £95.26 in Guaranteed Pension Credit, £19.04 in Savings Pension Credit, and £31.07 in Council Tax Reduction. In total, they gained £7,560 per year in additional income.
Lowe emphasised that underclaiming for Pension Credit is particularly significant because it unlocks access to other forms of financial support. “Figures for Pension Credit – the main means-tested benefit for older people – are particularly worrying because it is a gateway to other benefits such as Winter Fuel Payment.”
