Two-fifths missing out on pensions credits

Almost two-fifths of all pensioners entitled to pension credit are not claiming it, government figures have revealed.

The pension credits, which were launched in 2003, are intended to lift the poorest pensioners out of poverty.

Originally expected to reach around 73 per cent of those eligible, actual figures have levelled out between 31 and 39 per cent.

"These figures show in the starkest possible terms that Gordon Brown's flagship policy on pensioner poverty is failing to help many of the most vulnerable older people," said Anna Pearson, spokesperson at Help the Aged.

"Take-up has slowed almost to a crawl with an incredible £2 billion a year left unclaimed, which is equivalent to a tax windfall to Treasury coffers of £5.5 million each and every day."

The government said that the scheme was nonetheless boosting the pensions of two million retired people, but charities and MPs have called for a new way to distribute the funds.

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