ALMOST half of North-East pensioners are missing out on a flagship government benefit expected to pay out up to £25 a week, it was revealed last night.

Just 51 per cent of 250,000 pensioner households eligible to claim the pension credit are receiving money, government figures reveal.

Now the Liberal Democrats have claimed the figures back up their warnings that the benefit - introduced in October - is too complex and bureaucratic.

The Government has asked 5.4 million pensioners to apply for the pension credit, which replaced the minimum income guarantee, by telephoning a helpline.

According to the Department for Work and Pensions, only 128,000 of eligible North-East pensioner households are receiving money - with 122,000 missing out.

Steve Webb, the Lib Dem pensions spokesman, said: "It's shocking that pension credit is reaching so few of the people who should be getting this money.

"The Government has a bizarre strategy of writing to 80 per cent of pensioners to tell them about the benefit only after it had been introduced. This has resulted in an appalling take-up.

"This eye-wateringly complex benefit is claimed by few and understood by no one. The only guaranteed way to get extra money to the poorest pensioners is by boosting the inadequate state pension."

Work and Pensions Secretary Andrew Smith has said every claim for pension credit will be backdated to its start date.