The Department for Work and Pensions (DWP) has revealed more than 880,000 eligible pensioners are missing out on around £3,900 (on average) a year in pension credit.

These figures come as the Government gets set to launch a new campaign on Monday (September 2) called 'Pension Credit Week of Action'.

The aim of the campaign will be to encouraging those who are retired to check their eligibility for benefit payments and make an application.

The awareness campaign comes amid rising criticism of the Labour Government’s policy, which will end universal winter fuel payments and restrict the benefit payments to those receiving pension credit or other means-tested benefits.

Around 10 million pensioners are expected to lose out on winter fuel payments as a result of the policy, which the Government has revealed as part of its plan to tackle a £22 billion “black hole”.

What is winter fuel payment?

Chancellor Rachel Reeves said: “The £22 billion black hole inherited from the previous governments means we are having to take tough decisions now to fix the foundations of our economy – including making the winter fuel payments available to those most at need.

“(A total of) 1.3 million pensioners are already going to get help with fuel bills this year because they’re claiming pension credit – but thousands more are eligible.“So, if you know someone who could get pension credit and help with their fuel bills, now is the time to help them apply for pension credit.”

Are you entitled to £3,900 a year?

Pensioners whose weekly income is below £218.15 for a single person or £332.95 for a couple are being urged to use the DWP’s online calculator to determine their eligibility for payments.

People with a severe disability, carers and those who are responsible for a child or a young person who lives with them could receive additional money, the Government said.

Pension credit can also include extra amounts for certain housing costs, such as ground rent or service charges.

Work and Pensions Secretary Liz Kendall said: “Thousands of pensioners are missing out on pension credit worth on average £3,900 per year. That needs to change.

“It’s easier than ever to check if you are eligible, including with our online calculator, and if your circumstances have changed since the last time you looked – I urge you to check again.

“Friends, families and neighbours can also encourage their loved ones to apply, so that they are not missing out on this vital benefit.”

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Energy Secretary Ed Miliband added with energy prices set to rise this autumn due to an inherited legacy of "failure on energy policy" ensuring pensioners in the greatest need get access to the appropriate help.

Mr Miliband continued: “We will do everything in our power to increase take up of pension credit to the 880,000 households who are yet to claim – opening the door to other vital support such as the Winter Fuel Payment.

“The Government will also continue our mission to deliver clean power by 2030, helping to finally give families the energy security they deserve and our country the energy independence we need.”