Martin Lewis has issued an urgent call for people to apply for a "state pension top-up", potentially claiming up to £3,900 in benefits.
The Money Saving Expert founder described the Pension Credit as a "financial lifeline" for low-income pensioners which is now needed to claim the Winter Fuel Payment.
Lewis emphasised the importance of applicants understanding the benefits of the scheme,
He explained: "So whatever your age, take a second to understand how it works, so we can all ensure the message is spread to every nook and granny (and grandpas too)."
"While for most single pensioners, you need total weekly income, including from savings, under around £218 to be very likely to qualify, my rule of thumb is to spend a few minutes to check even with weekly income up to £235 as there's still a chance some may be eligible."
Pension Credit is a benefit aimed at people over state pension age, offering a top-up to their income. It consists of two parts, though some may qualify for only one. The benefit tops up weekly income to £218.15 for single pensioners and £332.95 for couples.
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People can find out if they’re eligible for Pension Credit and how much they can get online via the Pension Credit calculator PEXELSDespite its value, around 880,000 eligible pensioners are not claiming this benefit.
Lewis called this a "national tragedy", noting that many who have paid into the system for years are missing out on an average income boost of £3,900 per year.
The financial expert stressed the importance of applying, even for small amounts: "Pension Credit can pay out £1,000s a year, but even if it's only going to pay you thruppence, still claim it."
Eligibility for Pension Credit is primarily based on age and income. Applicants must have reached the state pension age of 66 and be earning below a certain amount.
Single pensioners with a weekly income under £218 are likely to qualify, while couples should have a combined income below £333.
However, Lewis encourages those with slightly higher incomes to check their eligibility as well.
He advises people to apply even if their weekly income is up to £235 for singles or £350 for couples.
It's crucial to note that Pension Credit is widely known as a "gateway benefit" which means claimants are able to access a variety of support.
"As once you get it, it's a gateway benefit that opens the door to other entitlements including council tax reductions, free TV licences (if age over 75) dental and optical support and more," the financial journalist said.
To apply for Pension Credit, eligible individuals can use the online service on the Government website, call the Pension Credit claim line, or submit a paper application by post.
LATEST DEVELOPMENTS:
Pensioners can get the Winter Fuel Payment via Pension Credit to help them with heating bills during the winter - but now it will be means-tested
PALewis cited the importance of claiming, especially in light of recent changes.
He added: "As the Government has just severed Winter Fuel Benefits eligibility for millions, if you claim Pension Credit, you'll still get it."
Additional benefits of receiving Pension Credit include potential council tax reductions, free TV licences for those over 75, and support for dental and optical care.
The Department for Work and Pensions (DWP) is currently running a Pension Credit 'Week of Action' to raise awareness and encourage eligible pensioners to claim this vital support.