Oldham Council has announced that £7.9m in pension credit is left unclaimed each year.
Cllr Abdul Jabbar MBE, deputy leader and cabinet member for value for money and sustainability, has supported Liz Kendall, work and pensions secretary, in her interest to reform the pension credit application process.
This comes after thousands of eligible residents are missing out on extra funds.
Figures reveal that more than 3,288 pensioners in the borough miss out on having their weekly income topped up by an average of £3,900 per year, as they do not claim the government benefit.
Pension credits also give access to other benefits such as the winter fuel allowance, which eligible people can also access if they apply by December 21, 2024.
Ms Kendall expressed the need to simplify the process to ensure that as many people as possible are claiming the money.
She suggested that the credit claiming process could be an automatic payment and not require an application form.
Cllr Jabbar said: "I'm pleased to see the work and pensions secretary call for a simplification to the pension credit process.
"I've been pushing for this to happen so more money can be put in the pockets of pensioners.
"This money is rightfully theirs, so they should be able to access it without barriers.
"Right now, thousands are going without this money.
"Oldham Council is doing everything we can to encourage take-up, including launching an awareness campaign and increasing capacity within our financial support teams to help people with the process.
"So, if you know someone who is claiming their pension, make sure they're checking to see if they could be claiming this extra cash.
"They can spend it on whatever they want, however it can help them best, and if people need any help in applying then we are here to support them."
To check pension credit eligibility, visit the government’s website.
Those needing additional support to do this can also contact the council's helpline on 0161 770 7007.
Alternatively, residents can visit the council’s new customer services centre in Spindles, where staff are on hand to help.
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