Hundreds of thousands of people in the UK could be due an annual income top-up of almost £4,000, with many not even aware. According to data from the Department for Work and Pensions (DWP), Pension Credit is the most under-claimed benefit available in the UK.
This cash support is specifically aimed at providing additional financial support for older people on a low income including singles and couples. As reported by the Daily Record, nearly 1.4 million older people across the UK are currently receiving the means-tested benefit that could provide nearly £4,000 in extra support during the year ahead.
But there are still 880,000 eligible pensioners not claiming the benefit they are entitled to. Some older people think because they have savings or own their home they would not be eligible for the means-tested benefit, which can also provide access to help with housing costs, heating bills and Council Tax.
Recently the DWP confirmed that nearly 78 percent of all new claims for Pension Credit are processed – from initial application to award decision letter – within the target timeframe of 50 working days.
This means older people on a low income making a new claim this month, especially those living on their own, could receive their first payment and any arrears by February.
It’s crucial for older people – single, married or cohabiting – to make sure they are claiming all the additional financial support they are entitled to this winter to help offset the price cap increase of 10 percent which came into force last month. The rule change to eligibility for the Winter Fuel Payment – worth up to £300 – means that Pension Credit claimants will automatically qualify and new claims made before December 21 will also qualify for a backdated payment.
Who can claim Pension Credit?
There are two types of Pension Credit – Guarantee Credit and Savings Credit. To qualify for Guarantee Pension Credit , you must be State Pension age (66). Your weekly income will need to be less than the minimum amount the UK Government says you need to live on.
This is £218.15 for a single person and £332.95 for a couple – this amount could be higher if you’re disabled, a carer or have certain housing costs.
You can only get Savings Credit if:
- You reached State Pension age before April 6, 2016, or you have a partner who reached State Pension age before this date and was already receiving it
- You have qualifying income of at least £189.80 a week for a single person and £301.22 a week for a couple.
How much could you receive from DWP?
Guarantee Credit tops up your weekly income to:
- £218.15 for a single person
- £332.95 for a couple (married, in a civil partnership or cohabiting)
- You might be able to get more than this if you’re disabled or a carer, or you have certain housing costs
Savings Credit can give you up to:
- £17.01 a week for a single person
- £19.04 a week for a couple (married, in a civil partnership or cohabiting).
- The exact amount you’ll get depends on your income and savings. Your income includes assumed income from savings and capital over £10,000
How to check eligibility for Pension Credit
Older people, or friends and family, can quickly check their eligibility and get an estimate of what they may receive by using the online Pension Credit calculator on GOV.UK here.
Alternatively, pensioners can contact the Pension Credit helpline directly to make a claim on 0800 99 1234 – lines are open 8am to 6pm, Monday to Friday.
Expert help and advice is also available from:
- Independent Age
- Income Max
- Citizens Advice
- Age UK
Other help if you get Pension Credit
If you qualify for Pension Credit you can also get other help, such as:
- Housing Benefit if you rent the property you live in
- Support for Mortgage Interest if you own the property you live in
- Council Tax discount
- Free TV licence if you are aged 75 or over
- Help with NHS dental treatment, glasses and transport costs for hospital appointments
- Help with your heating costs through the Warm Home Discount Scheme or Winter Fuel Payments
- A discount on the Royal Mail redirection service if you are moving house
- Mixed aged older couples and Pension Credit
In May 2019, the law changed so a “mixed age couple” – a couple where one partner is of State Pension age and the other is under it – are considered to be a ‘working age’ couple when checking entitlement to means-tested benefits.
This means they cannot claim Pension Credit or pension age Housing Benefit until they are both State Pension age. Before this DWP change, a mixed age couple could be eligible to claim the more generous State Pension age benefits when just one of them reached State Pension age.
How to make a claim
You can start your application up to four months before you reach State Pension age. You can claim any time after you reach State Pension age but your claim can only be backdated for three months.
This means you can get up to three months of Pension Credit in your first payment if you were eligible during that time.
You will need:
- Your National Insurance number
- Information about your income, savings and investments
- Your bank account details, if you’re applying by phone or by post
If you’re backdating your claim, you’ll need details of your income, savings and investments on the date you want your claim to start.
To check your entitlement, phone the Pension Credit helpline on 0800 99 1234 or use the GOV.UK Pension Credit calculator here to find out how much you could get.
