The elderly in Oldham are losing out on a staggering £8.5m because of unclaimed pension credit, research has found.

More than 3,000 eligible retirees have not applied for the support money, which could help them pay for basic necessities like heating, housing and groceries. 

The figure emerged after the Department for Work and Pensions (DWP) urged pensioners on Tuesday to check their eligibility following a backlash on the government’s decision to slash Winter Fuel Payments for pensioners above a certain income threshold. 

Pension credit tops up pensioners incomes to £218.15 a week – or £332.95 for couples. 

But data by Policy in Practice, an organisation that analyses social policy, found that across the UK £23 billion goes unclaimed by pensioners each year. The unclaimed money could be exacerbating the effects of the cost of living crisis on the elderly. 

The DWP are now urging pensioners to check their eligibility for the support. The government wants pensioners to apply by December 21, the last date for making a backdated claim for pension credit, while making them eligible for the winter fuel payment.

Chancellor of the Exchequer, Rachel Reeves said the “dire state of public finances” had forced the government to make “difficult decisions” but that Labour’s “commitment to supporting pensioners remains”. 

Arooj Shah, leader of Oldham council, said the local authority already ‘works really hard’ with partners in the charity sector to reach out to pensioners in Oldham who could be entitled to claim pension credit.

A recent campaign with AgeUK resulted in 27 pensioners claiming over £121,000 worth of pension credit, the councillor said. 

Cllr Shah said: “But there’s still lots more to do. It’s estimated that there’s over £8.5m going unclaimed in the system right now that Oldhamers are entitled to. 

“This money could make a massive difference to people and we want to get it out of the system and into their pockets. Pensioners who claim pension credit might also be able to access other support including help with NHS dental care or heating bills.” 

She advised pensioners and their loved ones to check their eligibility by ringing the pension credit claim line (0800 99 1234), filling out an online form or visiting one of the council libraries or customer service centres to speak to staff.