According to data released by the Department of Work & Pensions (DWP), up to 1m families across the UK could be losing out on roughly £2,600 a year in Pension Credit (PC).
In FYE 2024, only 62% of those entitled to PC received the benefit with up to 910,000 eligible families failing to claim.
Strikingly, up to £2.5bn of available PC went unclaimed, which is £1bn higher than in FYE 2023.
The DWP flagged limited awareness of the benefit or application procedure, attractiveness of the benefit and the perceived stigma of receiving a benefit as contributing factors.
Firms investing in pension engagement outperform peers
“These figures highlight a continuing challenge in pension engagement and education. It’s clear that too many people are unaware of the support available to them in later life,” said Richard Sweetman, senior consultant at Broadstone.
“Encouraging pension education in the workplace – whether through signposting to resources or financial wellbeing programmes – can make a real difference.”
He added: “The benefits system can be complex, and awareness often comes too late. By building understanding early, business can empower employees to make better financial decisions, both during their careers and retirement.”
Stephen Lowe, director at Just Group, agreed that the system is “complicated” and anyone feeling the squeeze on their finances should check their eligibility – including homeowners and those with savings.
The caseload take-up rate of PC in 2024 was higher for single men than single women (67% vs 64%) and decreased by 11% for couples (59% vs 48%).
Furthermore, expenditure take-up of PC by single men was highest (76%) compared to single women (73%) and couples (61%), but rates were lower than in FYE 2023.
This difference is related to the decrease in the estimated caseload take-up rate and the 10.1% increase in the Standard Minimum Guarantee (SMG) in FYE 2024.
