Background on Pension Credit
The fraud and error prevention scheme ‘Targeted Case Review’ has become a centrepiece of the Government’s plans to save billions in welfare spending. Despite this initiative, applications for Pension Credit have fallen by more than a third over the past year, even though hundreds of thousands of pensioners may still be eligible for this vital benefit.
Current Situation
According to the Department for Work and Pensions (DWP), claims for Pension Credit decreased by 36 percent between February 2025 and February 2026 compared to the previous year. The average annual value of Pension Credit is approximately £4,300, which can significantly aid low-income pensioners. However, the number of successful claims has also declined by around 13 percent during the same period.
Eligibility and Benefits
To qualify for Pension Credit, households must have a weekly income below specific thresholds and must reside in England, Scotland, or Wales while having reached state pension age. Eligibility for Pension Credit can unlock additional forms of support, including reductions in council tax and free television licenses for older households. Despite these benefits, many eligible individuals are not applying.
Efforts to Increase Awareness
The DWP has been actively working to increase awareness of Pension Credit. In 2025, the department recorded 33,500 additional awards compared to the previous year, indicating some success in outreach efforts. However, Adam Cole, a spokesperson for the DWP, noted that “a system where applications fall by more than a third while eligibility is broadly unchanged shows that the barriers to claiming are still entrenched.”
Support for Applicants
Many successful claims occur with assistance from family members or carers who help pensioners navigate the application process. This support is crucial as the complexities of the application can deter eligible individuals from applying on their own.
New Initiatives and Future Expectations
In an effort to address the declining applications, the DWP has launched a trial initiative in collaboration with Age UK and Independent Age. This program aims to contact pensioners who are likely to qualify for Pension Credit but are not currently claiming the support. Additionally, the DWP plans to expand the Targeted Case Review scheme, which is expected to introduce similar reviews of Pension Credit starting from 2026 and concluding in 2029. The DWP anticipates saving £2.5 billion in 2029-30 through this expansion.
Concerns About the Review Process
While the Targeted Case Review aims to prevent fraud and error, there are concerns about its impact on claimants. A recent empirical study revealed that the review process can be intrusive and distressing for many, involving significant administrative burdens. Observers are closely monitoring these developments as the DWP continues to refine its approach to Pension Credit and related benefits.