Applications for Pension Credit have fallen by more than a third over the past year despite hundreds of thousands of pensioners potentially still being eligible for the benefit.
The Department for Work and Pensions (DWP) payment, worth an average of £4,300 per year, is designed to top up the state pension income of older people with limited financial resources.
Official Government figures cited by AJ Bell show claims fell by 36 per cent between February 2025 and February 2026 compared with the previous 12 months.
Experts say the decline raises concerns many eligible pensioners may be missing out on financial support.
To qualify for Pension Credit, households must have weekly income below specific thresholds and live in England, Scotland or Wales while having reached state pension age.
Adam Cole, retirement specialist at Quilter, said recent changes to Winter Fuel Payment rules had previously prompted a surge in applications.
He said: “Last winter’s decision to make the payment dependent on Pension Credit drove a surge of interest from people trying to protect their entitlement.”
Mr Cole added: “With the return to a universal payment subject to the income threshold of £35,000, that incentive has disappeared and applications have dropped 36 per cent.”
The payment is worth an average of £4,300 per year
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He said the policy change briefly increased awareness of the benefit among pensioners.
Mr Cole said: “It pushed Pension Credit into the spotlight and forced many pensioners to check what they were entitled to, but as that attention has waned, so too have applications.”
Despite the sharp fall in applications, the number of successful claims has declined far less significantly.
Awards have fallen by around 13 per cent over the same period.
Experts say this suggests the overall number of households eligible for the support has not changed substantially.
Experts say the figures highlight the continuing gap between eligibility and take-up
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Recent Government research has examined why many pensioners who could qualify do not submit claims.
Mr Cole said the findings indicate that awareness and understanding remain major obstacles.
He said: “The research reinforces why take-up remains so fragile and finds awareness is inconsistent, understanding of eligibility is low, and many entitled people assume they do not qualify because they own their home, have modest savings or have a partner with income.”
Eligibility for Pension Credit can also provide access to several additional forms of support.
These can include reductions in council tax and free television licences for older households.
Mr Cole said many successful claims occur after family members or carers help pensioners navigate the application process.
“Crucially, many applicants only succeed because family members or carers intervene to navigate a process that older pensioners often find overwhelming.”
Mr Cole added longstanding evidence suggests the complexity of the system discourages some potential applicants.
“This matches long standing evidence that pension credit is complex and that awareness, not generosity, is the real barrier,” he said.
“Pension Credit remains the gateway to substantial additional support and that does not change with Winter Fuel Payment policy.”
The increase followed what the department described as its largest awareness campaign to date
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He added: “A system where applications fall by more than a third while eligibility is broadly unchanged shows that the barriers to claiming are still entrenched.”
The Department for Work and Pensions said it has been working to increase awareness of the benefit.
Officials pointed to 33,500 additional Pension Credit awards recorded in 2025 compared with the previous year.
A DWP spokesman said the department has also launched a trial initiative with Age UK and Independent Age.
The programme aims to contact pensioners considered most likely to qualify for Pension Credit but who are not currently claiming the support.