DWP £1,900 PER Year: Around 970,000 low-income Brits were missing out on support worth £1.5billion

Published On: March 8, 2025

DWP £1,900 PER Year Around 970,000 low-income Brits were missing out on support worth £1.5billion

More than one million pensioners in the UK are missing out on crucial benefits worth up to £1,900 per year. These include Pension Credit, Attendance Allowance, Housing Benefit, and Council Tax reductions.

A report by the charity Independent Age highlights that the complex and time-consuming application process is a major reason for low benefit uptake among older people. Many pensioners struggle to complete the 450-question application forms, leading to frustration, exhaustion, and financial hardship.

With millions of older people living in or on the edge of poverty, charities and campaigners are urging the Department for Work and Pensions (DWP) to simplify and streamline the process.

Which Benefits Are Pensioners Missing Out On?

Many pensioners are unaware that they are entitled to financial support. The main benefits that often go unclaimed include:

Pension Credit – A top-up for low-income pensioners
Housing Benefit – Helps with rent costs for eligible pensioners
Council Tax Reduction – Reduces council tax bills for those on low incomes
Attendance Allowance – A benefit for those with disabilities or health conditions

How Many Pensioners Are Missing Out?

Pension Credit: Only 65% of eligible pensioners claim this benefit. This means 970,000 low-income pensioners are missing out on £1.5 billion in total, which is around £1,900 per year per person.
Housing Benefit: A staggering 83% of eligible pensioners are not claiming Housing Benefit. This means 270,000 older households are missing out on £1.1 billion in unclaimed support.

Why Are Pensioners Struggling to Apply?

According to Independent Age, the biggest barriers to claiming benefits are:

Lengthy and complicated application forms – The process requires answering up to 450 questions.
Time-consuming applications – It can take four hours or more to complete with assistance and even longer without help.
Confusing eligibility rules – Many pensioners do not know which benefits they qualify for.
Fear of rejection – The long and detailed process discourages some applicants.

Many pensioners have described the process as “long, tedious, and repetitive.” Some have said that by the time they finish the forms, they feel mentally exhausted and anxious about whether they will receive any support.

Millions of Pensioners Living in Poverty

2 million older people in the UK are currently living in poverty.
1 million more are “on the edge”, struggling to afford basic necessities.
The situation is getting worse, as some older people have lost their Winter Fuel Payment entitlement due to rule changes.

Many pensioners cannot afford heating and are eating only one meal a day because they are unaware of or unable to claim the financial support available.

Calls for Change: What Needs to Be Done?

Independent Age’s Recommendations

The charity is urging the UK government and local councils to:

Simplify the application process – Shorten the forms and remove unnecessary questions.
Automate certain parts of the process – Reduce paperwork and speed up approvals.
Create an entitlement take-up strategy – Increase awareness and accessibility.
Proactively contact eligible pensioners – Make it easier for them to claim benefits.

DWP’s Response

A DWP spokesperson has defended the current system, stating:

The Pension Credit claim form has been made easier and faster, taking an average of 16 minutes to complete online.
120,000 more pensioners have started receiving Pension Credit since July.
A new initiative now links State Pension and Pension Credit to automatically assess eligibility.
The government has sent letters to over 120,000 pensioners receiving Housing Benefit, encouraging them to apply for Pension Credit.

How to Check If You Are Eligible

If you or someone you know might be missing out on benefits, here’s how to check:

Use the Pension Credit Calculator – Visit GOV.UK Pension Credit Calculator
Check Housing Benefit eligibility – Contact your local council
Apply for Attendance Allowance – Visit GOV.UK Attendance Allowance
Speak to a benefits advisor – Contact charities like Independent Age or Citizens Advice for help

The UK’s social security system is too complex, leaving over one million pensioners without the financial support they desperately need. Many pensioners struggle with long, confusing application forms, preventing them from accessing benefits worth £1,900 per year.

While the DWP has taken steps to improve the process, campaigners argue that more needs to be done. Simplifying applications, automating parts of the process, and increasing awareness campaigns could help ensure that older people receive the support they are entitled to.

If you or a loved one is a UK pensioner, it is crucial to check benefit entitlements and apply for any financial assistance available. Don’t miss out on support that could improve your quality of life.

Source

FAQ’s

1. What benefits are pensioners missing out on?

Many pensioners are not claiming Pension Credit, Housing Benefit, Council Tax Reduction, and Attendance Allowance, which could add up to £1,900 per year.

2. Why are so many pensioners not claiming benefits?

The application process is too long and complex, requiring up to 450 questions and taking several hours to complete. Many pensioners don’t know they are eligible or fear rejection.