In a significant move to tackle pensioner poverty, the Department for Work and Pensions (DWP) has announced a new collaboration with HM Revenue and Customs (HMRC) to better identify pensioner households most likely eligible for Pension Credit—a vital but often unclaimed benefit for people over State Pension age.
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🔍 Smarter Data, Bigger Impact: New DWP-HMRC Strategy
Pensions Minister Torsten Bell confirmed the DWP is working closely with HMRC to “target them directly”—referring to hundreds of thousands of pensioners who may unknowingly be missing out on thousands in financial support. This strategic approach leverages advanced data sharing to pinpoint eligible individuals who haven’t yet made a claim.
In response to a Parliamentary question from Liberal Democrat MP Wendy Chamberlain, Mr Bell explained:
“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.”
The aim? To use this data more effectively to identify pensioner households who could benefit from Pension Credit but haven’t applied.
📉 The Pension Credit Gap: Who’s Missing Out?
Currently, the DWP estimates that around 760,000 people over State Pension age are eligible for Pension Credit but are not claiming it. That’s a staggering number of older people potentially missing out on up to £4,300 a year in additional support in the 2025/26 financial year.
Eligibility is determined based on income. For instance:
- Single pensioners with weekly income under £227.10
- Couples with a combined income under £346.60
If you’re under those thresholds, you could qualify for Pension Credit—and potentially unlock access to other benefits like:
- Council Tax Reduction
- Free TV Licence (for over 75s)
- Cold Weather Payments
- Housing Benefit (for renters)
⏱️ Fast-Tracked Support: Claim Now, Get Paid by Summer
The DWP recently confirmed that nearly 78% of new Pension Credit claims are processed within 50 working days—meaning if you claim now, you could see your first payment and any backdated arrears by mid-June.
This is especially good news for older people living alone, who may not realize they’re entitled to this top-up on their income.
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📣 Why This Matters Right Now
With the cost of living crisis still squeezing older households across the UK, claiming all available financial support is more important than ever. Pension Credit is means-tested, but it can be a lifeline, particularly for those with limited income and rising costs.
Currently, around 1.4 million older people are receiving Pension Credit across Great Britain, including over 125,000 in Scotland. But with over half a million more eligible, the government is now taking proactive steps to bridge this gap.
🧾 Final Thought: Check Your Entitlement Today
This joint effort by DWP and HMRC marks a positive step toward ensuring no eligible pensioner is left behind. If you or someone you know is over State Pension age and living on a modest income, it’s worth checking eligibility now.
Don’t leave money on the table—£4,300 a year could be waiting for you.
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