UPDATE: |DWP to target pensioners most likely to be eligible for £4,300 boost in new plans News

The DWP has confirmed it is working with HMRC to use data more efficiently to identify people who are most-likely to be eligible for Pension Credit, allowing the DWP to “target them directly”

The Department for Work and Pensions (DWP) has confirmed its collaboration with HM Revenue and Customs (HMRC) to enhance the use of data in identifying households that may be eligible for Pension Credit. Pensions Minister Torsten Bell highlighted that this initiative will enable the DWP to “target them directly”.

An estimated 760,000 individuals over the State Pension age could be missing out on this means-tested benefit, which might amount to approximately £4,300 over the financial year 2025/26. In a written reply to Liberal Democrat MP Wendy Chamberlain’s query regarding data sharing between the DWP and HMRC.

Mr Bell noted: “HMRC and DWP already have well-established data-sharing processes and procedures, which are governed by the rules on how data can be accessed, shared and used whilst safeguarding individuals’ data and privacy.”

He added that DWP officials are actively working with HMRC to better utilise data to pinpoint pensioner households most likely to qualify for Pension Credit and to “target them directly”.

Pension Credit could be available to single pensioners with a weekly income below £227.10 or £346.60 for couples (combined total).

The DWP recently confirmed that nearly 78 per cent of all new Pension Credit claims are processed – from initial application to award decision letter – within the target timeframe of 50 working days. This means that older individuals on a low income, particularly those living alone, could receive their first payment and any arrears by mid-June if they make a new claim this month, reports the Daily Record.

It’s vital for all older people – whether single, married or cohabiting – to ensure they are claiming all the additional financial support they are entitled to this year to help increase their income and counteract the ongoing cost of living crisis.

Almost 1.4 million older people across Great Britain are currently receiving the means-tested benefit that could provide an average of £4,300 in extra support during the 2025/26 financial year.

Some older individuals believe that having savings or owning their home would make them ineligible for the means-tested benefit. However, an award of just £1 per week is enough to unlock other forms of support.

Here’s everything you need to know about the benefit.

Pension Credit explained

When you apply for Pension Credit, your income is calculated. If you have a partner, your incomes are calculated together.

Pension Credit tops up:

• your weekly income to £227.10 if you’re single
• your joint weekly income to £346.60 if you have a partner

If your income is higher, you might still qualify for Pension Credit if you have a disability, care for someone, have savings or have housing costs.

Your income includes:

• most social security benefits – for example, Carer’s Allowance
• earnings from employment and self-employment
• State Pension
• other pensions

What does not count as income:

• Attendance Allowance
• Disability Living Allowance
• social fund payments like Winter Fuel Allowance
• DWP Christmas Bonus
• Housing Benefit
• Child Benefit
• Adult Disability Payment
• Personal Independence Payment
• Council Tax Reduction
• Pension Age Disability Payment

Your savings

If your savings and investments amount to £10,000 or less, this will not impact your Pension Credit.

If you have more than £10,000, every £500 over £10,000 is counted as £1 income per week. For example, if you have £11,000 in savings, this equates to £2 income per week.

How to check eligibility for Pension Credit

Elderly individuals, or their friends and family, can swiftly check their eligibility and get an estimate of what they might receive by using the online Pension Credit calculator on GOV.UK here.

Alternatively, pensioners can reach out to the Pension Credit helpline directly to make a claim on 0800 99 1234 – lines are open from 8am to 6pm, Monday to Friday.

More information about claiming Pension Credit can be found on GOV.UK here.

Other help if you get Pension Credit

If you’re eligible for Pension Credit, you can also access other forms of assistance, such as:

• Help with your heating costs through the Warm Home Discount Scheme, Winter Fuel Payments or Pension Age Winter Heating Payment
• Housing Benefit if you rent the property you live in
• Council Tax discount
• Help with NHS dental treatment, glasses and transport costs for hospital appointments
• Support for Mortgage Interest if you own the property you live in
• A discount on the Royal Mail redirection service if you are moving house
• Free TV licence if you are aged 75 or over

How to submit a claim

You can initiate your application up to four months prior to reaching State Pension age. You can make a claim any time after you reach State Pension age, but your claim can only be backdated for three months.

This means you could receive up to three months of Pension Credit in your first payment if you were eligible during that period.

You will require:

• your National Insurance number
• details about your income, savings and investments
• your bank account details, if you’re applying via phone or post

If you’re backdating your claim, you’ll need information about your income, savings and investments on the date you want your claim to commence.

Apply online

You can utilise the online service if:

• you have already claimed your State Pension
• there are no children or young people included in your claim

To verify your entitlement, call the Pension Credit helpline on 0800 99 1234 or use the GOV.UK Pension Credit calculator here to determine how much you could receive.