Local authority leaders today called on pensioners who are eligible for Pension Credit to apply for the top-up welfare payment to help with the cost-of-living crisis.

Pension Credit provides people who are on a low income and over the state pension age with extra money to help with living costs.

The Local Government Association (LGA) has warned that only about two-thirds of those eligible for the payment have so far claimed it. The LGA estimates that around 850,000 households are missing out on the extra support.

The latest statistics show that 2.1 million (18%) of pensioners in the UK live in poverty, an increase from 1.6 million (14%) in 2013/14.

The tax-free Pension Credit payment, which for single pensioners tops up weekly income to a guaranteed minimum level of £182.60, or £278.70 for couples, is also a vital gateway for claimants to be entitled to other related help such as council tax relief, support for dental care costs and the one-off cost of living payment of £650.

Cllr Andrew Western, chair of the LGA’s Resources Board, said: ‘People across the country, including our oldest and most vulnerable, are feeling the pressure from rising prices and bills with some really struggling to make ends meet.

‘Councils want to do all they can to help those most in need, including encouraging anyone who is eligible to receive the benefits they are entitled to and not miss out on essential support which could make all the difference.

‘Increasing Pension Credit uptake will definitely help and open up avenues to other benefits, such as council tax relief and should be part of a wider, longer-term approach to making sure everyone has a decent standard of living.’

Separately, the Department for Work and Pensions today issued a reminder that the first instalment (£326) of the £650 for qualifying low income households in England, Wales, Scotland and Northern Ireland will be paid next month.