The UK government has reported a record number of Pension Credit applications, thanks to a faster, more accessible online process and an aggressive awareness campaign aimed at supporting low-income retirees.
According to the Department for Work and Pensions (DWP), an unprecedented 117,800 claims have been approved—a 64% increase compared to the same period last year. This surge comes as part of the government’s Plan for Change, which aims to improve pensioners’ living standards and ensure that no eligible individual misses out on vital financial support.
Streamlined Application Process Boosts Access
One of the biggest catalysts behind the jump in applications has been the introduction of an updated online application system, which now takes an average of just 16 minutes to complete. The DWP’s efforts to simplify the process—based on feedback from older applicants—have dramatically reduced delays and improved access.
As of 23 February 2025, the backlog of pending claims has dropped from a peak of 85,500 to just 33,700, restoring application processing times to normal levels. Over 90% of new applicants now submit their claims either online or via phone, making it easier for even isolated pensioners to apply.
Additional Support and Faster Approvals
In response to the surge in demand, the government deployed 500 additional staff to process applications, nearly doubling the number of claims handled between July 2024 and February 2025.
This rapid response has ensured that eligible pensioners are receiving support quickly—up to £4,300 a year, completely tax-free, through Pension Credit. This benefit is designed to top up the incomes of retirees living on less than the minimum threshold and opens access to additional perks such as:
- Free TV licences for those over 75
- Council tax reductions
- Cold Weather Payments
- NHS dental and optical cost assistance
- Housing support
State Pension and Pension Credit Teams Join Forces
To streamline services even further, the State Pension and Pension Credit teams are now working together. When someone applies for their State Pension, DWP staff automatically check their eligibility for Pension Credit. If the applicant qualifies, their claim is processed immediately—no need for a second application.
This integrated approach ensures that first-time pensioners don’t miss out on support they may not even know they’re entitled to.
Government’s Commitment to Retirees
This wave of Pension Credit claims comes alongside the government’s continued commitment to the Triple Lock, which guarantees State Pensions rise each year by the highest of:
- Inflation
- Wage growth
- Or 2.5%
Thanks to this policy, some retirees will see their State Pension increase by up to £1,900 in the coming year.
These combined efforts reflect a broader push to raise pensioners’ living standards, especially those on the lowest incomes.
Spreading Awareness: Everyone Has a Role
Consumer finance expert Sarah Pennells, from Royal London, has encouraged pensioners to check their eligibility, warning that many are still missing out simply because they haven’t applied. She also urged younger generations to assist elderly friends, neighbours, and relatives who may not be aware of the scheme.
To support this, the DWP continues to:
- Run national media campaigns
- Partner with local councils and charities
- Simplify communications to reach more vulnerable groups
How to Apply for Pension Credit
If you or someone you know is over State Pension age (currently 66) and living on a low income, applying for Pension Credit is easier than ever. Here’s how:
- Online: Visit gov.uk/pension-credit/how-to-claim
- Phone: Call 0800 99 1234 (Monday–Friday, 8 am to 6 pm)
- Post: Download and submit a form to:
Freepost DWP Pensions Service 3 (No stamp or postcode required)
Claims can be backdated by up to 3 months, so you could receive a lump sum if you were eligible earlier.
Key Takeaways
- 117,800 claims approved—a record high
- 64% year-on-year increase in applications
- 16-minute average application time
- Backlog slashed by over 50%
- Up to £4,300/year in tax-free support available
- Additional access to discounts and perks
- No need for a separate application when claiming State Pension
FAQs
Why has Pension Credit seen a surge in applications?
The process is now faster, simpler, and more accessible. Increased awareness campaigns have also helped spread the word.
How long does it take to apply?
The average online or phone application now takes just 16 minutes.
What is the maximum Pension Credit payment?
Some recipients can receive up to £4,300 a year, depending on their income and circumstances.
Can I apply on behalf of someone else?
Yes, you can assist relatives or friends with their application if they need help.
