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DWP Targets Pension Credit Shortfall as Winter Fuel Payments Start Under New £35,000 Income Rule

A data-led pilot with charities aims to reach likely non-claimants.

Overview

  • Official figures show about 910,000 eligible pensioner households did not claim Pension Credit in 2023/24, leaving roughly £2.5 billion unclaimed.
  • During Pension Credit Week of Action, the DWP began a targeted letter trial to 2,000 likely non-claimants in England with Age UK and Independent Age, after campaigns that added 56,700 awards in the past year.
  • Take-up varies widely by area, with rates around 71% in the North East versus the mid‑50s in parts of the South West, and estimated shortfalls of about £204 million in the North West and £162 million in the West Midlands.
  • Demographic gaps persist, with couples’ claiming rates down to 48% and participation lower among people aged 75 and over.
  • Winter Fuel Payments of £100–£300 begin rolling out in November and December, with HMRC set to reclaim payments from individuals earning over £35,000 via tax codes or Self Assessment as councils and charities urge eligibility checks and offer application support.