A new report shows the main reasons pensioners are not claiming their DWP Pension Credit entitlement worth an average of £4,300 a year

Numerous Brits could be losing out on thousands of pounds annually after turning 66 due to a crucial DWP benefit. This is reportedly due to ’embarrassment’, misunderstanding eligibility criteria, and a general lack of awareness.

A recent report has shed light on the misconceptions preventing pensioners from claiming what they are rightfully owed. Pension Credit is an essential support for individuals over the state pension age who have a low income.

It offers additional funds and other benefits such as council tax reductions, free TV licences for those over 75, and assistance with NHS dental treatment.

A new Verian report identified the primary obstacle preventing people from claiming their entitlement was a widespread belief that they were not eligible for various reasons. Some common, yet incorrect, assumptions included the notion that PIP, savings or your partner’s employment status rendered them ineligible.

The main eligibility criteria for Pension Credit stipulate that you must be over the state pension age, reside in England, Scotland or Wales, and have a low income which is typically capped at £227.10 per week for individuals and £346.60 per week for couples. However, you may still qualify if your income exceeds this limit if you have a disability, savings, housing costs or care responsibilities, reports the Mirror.

You can have up to £10,000 in savings and investments without it affecting your Pension Credit. Each £500 above this limit will be treated as £1 a week in your income calculations, meaning you can still qualify for the benefit with savings exceeding this amount.

The report identified two other key issues preventing people from accessing their entitlement: a lack of awareness, with many stating they had ‘never heard’ of Pension Credit and its associated benefits. Another common barrier was the stigma surrounding claiming benefits and state support, which made people reluctant to apply.

It left people feeling ‘too proud’ and ’embarrassed’ to seek support sooner. DWP analysis last October revealed fewer than 70% of eligible pensioners in England, Scotland and Wales were claiming their Pension Credit entitlement.

Those who had submitted their claim were receiving £82.71 each week on average or £4,300 a year. Pension Credit provides you with extra money to help with your living costs if you’re over State Pension age and on a low income. Pension Credit can also assist with housing costs such as ground rent or service charges.

If you are eligible for Pension Credit but may not receive payments from it, for example if your savings are too high, it may still be worthwhile making your claim in order to access the associated benefits it provides. Other common reasons the report found for eligible individuals not claiming Pension Credit included some who felt they were managing financially.

One recipient over the age of 75 who was entitled to the benefit but not claiming it said: “With the position I’m in, if there’s a fund out there for more deserving people, they should be the one to receive it… if they need it more than me, I think they should have priority.”

Others had a distrust around receiving government support, as one new Pension Credit recipient over the age of 75 said: “I was wary of claiming for it because I didn’t know if it would affect my pension… if the government gives you some money, they usually take it off you somewhere else.”