Pride and ignorance cost pensioners £2bn

More than a million older people are not claiming means-tested pension credits because they are unaware of the benefits or too proud to ask for them, parliament's spending watchdog warned today.

The National Audit Office said 2.7m pensioner households received credits worth £6bn in 2004-05 and this helped to reduce the number living below the breadline.

But up to £2bn went unclaimed and the government would not achieve its takeup targets. The charity Help the Aged said the problem was means-testing and the solution was to make the payment automatic.