Applications for state pension support have fallen by more than a third over the past year despite repeated awareness campaigns urging eligible households to apply.
Fresh figures released by the Department for Work and Pensions (DWP) show 209,735 Pension Credit claims were submitted between February 24, 2025 and February 22, 2026.
That represents a 36 per cent decline compared with the previous 12 months.
This equates to 117,595 fewer pensioners applying for the benefit than during the equivalent period a year earlier.
The sharp drop comes despite official estimates suggesting close to one million families who qualify for Pension Credit are still not claiming it.
Financial experts said the fall was disappointing given recent Government-backed campaigns designed to boost awareness among eligible retirees.
Research conducted by the DWP found widespread misunderstanding about who qualifies for the benefit.
While most respondents demonstrated a basic understanding of what Pension Credit is intended for, detailed knowledge of eligibility criteria was found to be limited.
Close to one million families who qualify for Pension Credit are still not claiming it
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Crucially, many participants were unaware that they met the conditions for support.
A significant proportion incorrectly believed owning their home would automatically disqualify them from receiving payments.
Others assumed having savings or a working partner meant they were not eligible to apply.
The findings suggest such misconceptions are preventing substantial numbers of pensioners from accessing financial support to which they are entitled.
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The research concluded that improving take-up among those currently missing out would depend heavily on clearer and more targeted information.
David Brooks, head of policy at Broadstone, said: “The DWP research shines a light on many of the attitudinal and awareness issues that have plagued Pension Credit take up, with entitled pensioners still lacking a clear understanding of eligibility requirements and the application process.”
He added: “Many are holding assumptions that homeownership or savings may exclude them from this financial support, and delivering vital financial assistance to the nearly one million eligible families not currently claiming is essential for their retirement quality of life.”
Mr Brooks said he was disappointed by the scale of the reduction in applications following earlier campaigns linked to changes to the Winter Fuel Payment.
He said: “We would hope to see continued and urgent efforts to increase awareness and uptake to support more pensioners in need with this additional income.”
Eligibility thresholds mean single pensioners with weekly income below £227.10, equivalent to around £11,800 per year, qualify for the benefit.
Couples qualify if their combined weekly income is below £346.60, or approximately £18,000 annually, with these rates set to rise from April.
Pension Credit tops up income to meet these thresholds, meaning a claimant receiving £217 per week would be entitled to an additional £10.
Pensioners could be missing out on crucial support
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Rachel Vahey, head of public policy at AJ Bell, said: “The panic triggered by the July 2024 winter fuel payment announcement is still written large in the pension credit statistics for all to see.”
She noted almost 100,000 claims were rejected in the year to February 22 2026, indicating that confusion about eligibility remains widespread.
Applications for Pension Credit must be submitted directly to the DWP, either online or by telephone: 0800 99 1234.