Finance expert tells people born before 1960 'you may still qualify' as DWP issues £4,500 alert

Households are being urged to make a vital check as it could mean they get a financial boost of £4,500 a year. Leaflets are set to be posted through the doors of 660,000 homes in seven areas across the UK to flag a key benefit that is missed by many who would be entitled to the money .

Figures show around 1.4m pensioner households are already benefiting from Pension Credit. Last year, the Department for Work and Pensions saw an extra 33,500 applications, following its biggest ever Pension Credit awareness campaign.

The DWP has now launched a new drive to ensure that eligible pensioners don’t miss out. Under its latest campaign leaflets will be posted through letterboxes in Glasgow, Powys, Stockton-on-Tees, inland Cornwall, Birmingham, East Suffolk and Manchester - areas where it says a there are a high proportion of low-income pensioners.

Now finance experts are advising people not to assume they won't qualify as some can assume they won't get help because of savings or other reasons such as owning their own home. The call to "check" comes after Independent Age’s analysis found that more than a million eligible older people missed out on a combined £2.5 billion in 2023/24.

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Joe Lytwyn, Personal Finance Expert at thimbl.com , is encouraging pensioners and their families to check their individual circumstances, including those who may assume owning a home or having savings makes them ineligible. He says: “ DWP has launched a new awareness campaign , highlighting that Pension Credit is worth more than £4,500 a year on average. That is not a guaranteed payment, as individual entitlement depends on someone’s circumstances.

" Independent Age’s analysis found that more than a million eligible older people missed out on a combined £2.5 billion in 2023/24. For someone managing a tight retirement budget, checking could identify valuable support with everyday costs."

Joe explains that owning their home, having savings or receiving the State Pension, does not necessarily rule out a pensioner from getting the help. He said: “Owning your home or having savings does not automatically rule you out , and Pension Credit is separate from the State Pension."

He adds: "Savings and investments of £10,000 or less do not affect Pension Credit. Above that amount, savings are taken into account, but you may still qualify. Your State Pension and other pension income generally count towards the assessment. The important thing is to check your individual circumstances rather than assume you are ineligible."

Receiving Pension Credit could also unlock other support, depending on individual circumstances. Joe said: "Depending on your circumstances, receiving Pension Credit could also open the door to help with housing costs, Council Tax, and heating bills .

"People aged 75 or over may qualify for a free TV licence, while those receiving the Guarantee Credit element of Pension Credit may qualify for help with NHS dental treatment and glasses.