Pension Credit applications see sharp annual decline – DWP

Pension Credit applications, claims and awards have dropped sharply in the past year, according to new data from the Department for Work & Pensions (DWP). 

In 2025/26, the DWP received 211,125 Pension Credit applications, down 34% or almost 110,000 fewer applications than the year before. 

The department cleared and awarded 138,165 claims, a drop of 24% or nearly 43,000 fewer compared to 2024/25.

David Brooks, head of policy at Broadstone, said: “The sharp rise in Pension Credit claims following the Government’s decision to link Winter Fuel Payments to Pension Credit eligibility shone a helpful spotlight on just how many retirees were missing out on valuable support to which they were entitled. 

“However, as the issue declined in salience, claims activity is now falling back towards lower, more normal levels and there is a risk that awareness once again fades.

“However, the latest figures show there are still up to 910,000 families who were entitled to Pension Credit that are not claiming it, missing out on up to £2.5 billion of financial support.”

Brooks added: “This matters because Pension Credit is specifically targeted at lower-income pensioners and can be worth thousands of pounds every year. 

“Moreover, it often acts as a gateway to a much wider package of support, including help with energy bills, housing costs and council tax.