DWP sending letter to 120,000 people as they could be missing out on £4,000 a year

People on Housing Benefit may be entitled to Pension Credit - and the DWP is writing to 120,000 pensioners to let them know

The Department for Work and Pensions (DWP) has begun distributing crucial correspondences to 120,000 people who might not be availing themselves of a potential £4,000 annual boost to their pensions. The DWP is focusing on those already receiving Housing Benefit as they are likely eligible for Pension Credit, which can augment incomes by an average of £4,000 annually.

Pensioners with Pension Credit are also privy to additional Government assistance such as the Winter Fuel Payment that could mean an extra £200 to £300 this winter. Pensions Minister Emma Reynolds addressed concerns in Parliament, saying: "Building on last year's 'Invitation to Claim' trial, the Department [DWP] will be directly contacting approximately 120,000 pensioner households who are in receipt of Housing Benefit and who may also be eligible for, but not currently claiming Pension Credit. We can identify and target these households using DWP's Housing Benefit data."

This initiative comes following Independent MP Rebecca Long-Bailey's inquiry regarding the measures in place to promote Pension Credit applications.

The benefit remains significantly underclaimed – it's estimated around 780,000 individuals are not receiving this financial support despite a recent campaign to highlight its availability.

Ms Reynolds highlighted ongoing initiatives to encourage applications, remarking: "We are also asking local authorities to support our Pension Credit campaign - the Secretary of State and the Deputy Prime Minister wrote to all local authorities in August. Many already undertake their own initiatives to identify eligible households and promote take-up; and over 160 local authorities have responded positively to our 'call for action'."

Pension Credit offers a weekly income boost, raising your income to £218.15 for single claimants and up to £332.95 for couples depending on certain conditions like caring for another adult or having savings. The benefit is available to those of state pension age and doesn't require you to be receiving your state pension to qualify.

Claiming this support also provides access to additional assistance such as council tax reductions and free TV licences for those over 75. Eligibility for other benefits can be determined using tools like the calculator on the Turn2us website.