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Pension expert reveals ISA tax hack that can make pensioners £4,300 a year better off

Journalist: Samantha Downes (Soames), News reporter - freelance - national newspapers and trades

ended 28. November 2025

As Pension Credit applications fall concern is growing over the large number of state pensioners who are failing to claim the payment, despite being eligible.

Pension Credit tops up a weekly income to £227.10 if you’re single or a joint weekly income to £346.60 if you have a partner

But many Brits appear to be too embarrassed to claim the payment. Last month the Department of Work and Pensions said it was attempting to boost take-up of Pension Credit by partnering with Age UK and Independent age.

DWP analysis found that between 60% and 70% of potentially eligible pensioners in the North and London were claiming Pension Credit, while in the East and South this drops to around the mid-50% mark. Take up rates are highest in the North East at 71% compared to just 55% in the South West. 


In the 52-weeks ending 23 November 2025 the number of applications fell by 26% decrease or 80,670.

The previous year to November 2024 saw an uplift in applications after the incoming Labour government announced those on Pension Credit could claim the Winter Fuel Allowance

Scott Gallacher, director at Leicester-based Rowley Turton said he had found a novel way of encouraging his clients to apply for Pension Credit.

"In my experience, many people are still very reluctant to claim benefits they are legally — and morally — entitled to. There’s a deep-rooted stigma around ‘claiming,’ even when Pension Credit can be worth £2,500 a year once you include the extra support it unlocks.

"I often have to frame Pension Credit as a refund of the tax they’ve paid over a lifetime, because that’s the only way some clients feel comfortable accepting it. They’re perfectly happy using ISAs and pensions to be tax-efficient, yet claiming money they’re fully entitled to feels far less palatable.The fall in applications suggests this stigma is still holding many pensioners back — and it means thousands are missing out on support that could genuinely transform their finances."

If you get Pension Credit you can also get other help, such as:

  • Housing Benefit if you rent the property you live in
  • Cold Weather Payments (or Winter Heating Payments in Scotland)
  • Support for Mortgage Interest if you own the property you live in
  • a Council Tax Reduction
  • a free TV licence if you’re aged 75 or over
  • help with NHS dental treatment, glasses and transport costs for hospital appointments, if you get the Guarantee Credit part of Pension Credit
  • help with your heating costs through the Warm Home Discount Scheme
  • a discount on the Royal Mail redirection service if you’re moving house

     


 

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Editor
Scott Gallacher
Director at Rowley Turton
In my experience, many people are still very reluctant to claim benefits they are legally — and morally — entitled to. There’s a deep-rooted stigma around ‘claiming,’ even when Pension Credit can be worth £2,500 a year once you include the extra support it unlocks.

I often have to frame Pension Credit as a refund of the tax they’ve paid over a lifetime, because that’s the only way some clients feel comfortable accepting it. They’re perfectly happy using ISAs and pensions to be tax-efficient, yet claiming money they’re fully entitled to feels far less palatable.

The fall in applications suggests this stigma is still holding many pensioners back — and it means thousands are missing out on support that could genuinely transform their finances.