Millions of older homeowners could be missing out on extra income at a time when household budgets remain under pressure and living costs are still high.
New evidence suggests a large number of pensioners are failing to claim financial support that could make a meaningful difference to their day-to-day finances.
Pensioner homeowners across the United Kingdom are losing out on substantial sums by not applying for state benefits they are entitled to receive.
According to the 16th annual State Benefits Insight Report from retirement specialist Just Group, nearly three quarters of eligible older homeowners are not claiming any financial support whatsoever.
The research, based on detailed interviews with clients seeking equity release advice during 2025, found that 42 per cent qualified for at least one key benefit. Among those entitled, 74 per cent had failed to submit any claim, forfeiting an average of £1,339 annually.
A further 14 per cent who were receiving payments were getting less than their full entitlement, missing out on approximately £1,162 per year on average.
Council Tax Reduction represented the most widespread missed entitlement, with 41 per cent of pensioner homeowners qualifying for support.
However, fewer than one in four eligible households were actually receiving the payment, leaving an average of £1,050 unclaimed annually.
Take-up of Guarantee Pension Credit proved particularly poor, with just 29 per cent of those entitled submitting claims. The average value of newly identified claims stood at £394 per year.
Savings Pension Credit, designed as a top-up for pensioners with modest savings, saw slightly better engagement at 56 per cent take-up among the nine per cent who qualified, worth £453 annually on average.
Millions of pensioners could be £1,339 better off each year after ‘five-minute check’
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GETTYUniversal Credit showed the highest take-up rate at 60 per cent, though those failing to claim were missing out on a substantial £3,926 per household on average.
David Cooper, director at Just Group, described the situation as reaching crisis proportions. “Our survey once again reveals what appears to be an epidemic of pensioner homeowners missing out on income they are entitled to claim,” he said.
Mr Cooper emphasised that those affected were predominantly financially vulnerable. “These are low-income pensioner households likely to be struggling with the cost-of-living crisis,” he noted.
The findings suggest many property owners mistakenly believe they cannot access state assistance. “Our take-up figures for homeowners are a little lower than the overall rates published by the government, suggesting some people may think owning a home rules them out of receiving State support,” Mr Cooper explained.
Guaranteed Pension Credit serves as the primary means-tested benefit for older people and acts as a gateway to additional support
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GETTYGuaranteed Pension Credit serves as the primary means-tested benefit for older people and acts as a gateway to additional support including Winter Fuel Payment.
Government figures from 2023/24 indicate that as many as 910,000 families entitled to Pension Credit were not claiming, representing approximately £2.5billion in unclaimed support or around £2,600 per family annually.
The report identified one South Yorkshire client who was owed £113.03 weekly, equivalent to £5,877 per year. More than half of those missing out were entitled to benefits exceeding £1,000 annually.
Resources for checking entitlement include government benefit calculators, local councils, MoneyHelper, Citizens Advice and Age UK
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GETTYMr Cooper stressed that benefits such as Pension Credit require active applications rather than being awarded automatically.
“It’s important cash-strapped pensioner households do not simply assume there is no State help available – a five-minute check could unlock thousands of pounds of income each year,” he said.
Resources for checking entitlement include government benefit calculators, local councils, MoneyHelper, Citizens Advice and Age UK.