Up to 760,000 families who were entitled to receive pension credit did not claim it in the financial year ending in 2023, according to Department for Work and Pensions (DWP) figures.

This was a decrease compared with the financial year ending in 2022, when up to 870,000 families who were entitled did not claim.

Claims for pension credit have shown signs of a jump recently, as it has become linked to winter fuel payments.

Figures released in September showed a rise in pension credit claims in the weeks after the Government announced restrictions on who would receive winter fuel payments.

This started after July 29, when Chancellor Rachel Reeves announced the winter fuel allowance for pensioners would be limited to only those claiming pension credit or other means-tested benefits.

Ms Reeves announced the squeeze as part of a series of measures aimed at filling what she called a £22 billion “black hole” in the public finances.

It is expected to reduce the number of pensioners in receipt of the up to £300 payment by 10 million, from 11.4 million to 1.5 million.

Up to £1.5 billion of available pension credit went unclaimed in the financial year ending 2023, a decrease from the estimate of up to £2.0 billion that went unclaimed in the financial year ending 2022, according to the figures covering Britain, placed on the DWP website.

Around two-thirds (65%) of those entitled to pension credit claimed the benefit in the financial year ending in 2023, which was an increase from 63% in 2022.

Helen Morrissey, head of retirement analysis, Hargreaves Lansdown, said: “Boosting take-up of pension credit has been a major problem that has proven tricky to crack, with previous campaigns being derailed by the pandemic.

“However, there are signs that progress is being made, with take-up creeping up to 65% from 63% the previous year.

“It was during this period that pension credit claimants were entitled to payments designed to help see them through the punishing cost-of-living crisis. However, given the scale of the crisis, it’s surprising that take-up didn’t increase far more.

“Looking through more recent data shows that we may be in line for more of an uptick though. The recent restriction of the winter fuel allowance to people on benefits such as pension credit has garnered many headlines, with people urged to check if they can put in a claim.”

She added: “However, the scale of the challenge is enormous, with more than 750,000 families who could receive pension credit not claiming it.

“Pension credit is a hugely valuable benefit that not only tops up income but also acts as a gateway to other support such as a free TV licence for the over-75s as well as help with council tax.

“The winter fuel payment will also be a major help as we head into the winter months with energy bills on the rise. Anyone who thinks they or a loved one could be entitled should put in a claim.”

Joanna Elson, chief executive of Independent Age, described the figures released on Thursday as “disappointing”.

She said: “Behind these statistics are real people who are worrying about whether they will be able to afford next month’s bills.

“Each year, our Independent Age advisers hear from thousands of older people living in financial hardship who are forced to make decisions such as whether to wash in warm water or eat fresh vegetables.

“To ensure this group don’t also miss out on the winter fuel payment we continue to call on the UK Government to pause their plan to means test the winter fuel payment.”

She added: “We know there has been an increase in applications since the announcement that the winter fuel payment would be means tested, but it is unclear how many of these will result in successful claims…

“Previous strategies have not moved the dial, we can’t have more of the same. We need an innovative, evidence-based, long-term benefits take-up strategy that maps out how older people living in, or on the edge of, poverty can access the financial support they are entitled to.

“With winter around the corner, now is the time to bring those who most need it back in from the cold.”