Pensioners making over £218 a week could be missing out on an extra £3,900 a year via Pension Credit.
Experts are urging pensioners to check their eligibility before December 21, 2024, to secure a cash boost this winter.
A loophole in the benefits system means that those above the standard Pension Credit threshold may still qualify for support, particularly if they receive disability benefits such as Attendance Allowance.
Research shows that many pensioners are failing to claim benefits they’re entitled to – potentially missing out on thousands of pounds in additional support – because they don’t think they would qualify.
Pension Credit is based on the amount of income one receives. It tops up weekly income to £218.15 for those who are single and £332.95 with a partner.
Sarah Pennells, consumer finance specialist at Royal London explained that those on a higher income than this may still be able qualify if they “have a disability, care for someone, have savings, or have housing costs.”
Pension Credit tops up weekly income to £218.15 for those who are single and £332.95 with a partner
PA
She said: “There are a number of reasons for this. If you receive benefits as part of your income, some benefits, such as Attendance Allowance or Personal Independence Payment, aren’t taken into account when your income is being assessed.’
This means those receiving certain benefits such as Attendance Allowance can see their income threshold for Pension Credit eligibility rise as it is not counted towards their income.
Benefits that are not counted as income also include the Christmas Bonus, Child Benefit, Personal Independence Payment, and social fund payments like Winter Fuel Allowance, Housing Benefit, and Council Tax Reduction.
Income that is counted includes the state pension, other pensions, earnings from employment and self-employment and some social security benefits, for example, Carer’s Allowance.
Martin Lewis, the money saving expert shared a success story from a woman who claimed Pension Credit for her father through this loophole. She emailed his team and said: “I’ve successfully claimed for my dad who has chronic arthritis – so he now gets an extra £72/wk.
“He has struggled for years, he’d not been able to claim Pension Credit previously as he has a small private pension. Now he has AA, he’s also eligible for a further £35/wk Pension Credit, and his Housing Benefit has been increased by £40/wk.”
Lewis explained that high housing costs are taken into account when applying for Pension Credit. This could allow individuals earning above the standard threshold qualify for the benefit, potentially leading to additional benefits such as council tax reduction or Housing Benefit.
New research from Royal London has revealed that 40 per cent of UK pensioners haven’t checked if they qualify for Pension Credit. Of those who haven’t verified their eligibility, a striking 75 per cent believe they wouldn’t qualify for the benefit.
Some 31 per cent of low-income pensioners haven’t checked their eligibility, while 45 per cent of those on mid-to-higher incomes also haven’t investigated their potential entitlement. The research also showed that 11 per cent of those who know they qualify still haven’t applied for Pension Credit.
Pennells said: “Some of the main reasons people miss out on Pension Credit are because they don’t think they would qualify, or they don’t check because they feel too ashamed to admit they need extra help. We need to spread the message that there is no shame in accepting help that is available.
“There is also a significant generational gap in awareness, which means family and friends aren’t prompting their loved ones to check if they qualify.”
Claiming Pension Credit can also act as gateway to get Winter Fuel Payments for an estimated 10 million pensioners who will no longer be eligible for the payment.
The recent change to Winter Fuel Payment eligibility has meant only those on certain means tested benefits now qualify, such as Pension Credit. Previously, the £200 to £300 payment was automatically given to households with someone over state pension age.
Pennells highlighted that although Pension Credit is so vital, approximately three-quarters of a million pensioners are still missing out on this financial support.
People have until Saturday December 21 to claim Pension Credit and still qualify for this year’s Winter Fuel Payment as the benefit can be backdated by three months.
Royal London has launched their ‘Take The Credit’ campaign to help reduce stigma around applying for Pension Credit. The organisation has made a free two-minute calculator available on their website to help people check their eligibility.
Psychologist Emma Kenny explains that many pensioners miss out on financial support due to feelings of shame or reluctance to ask for help. She said: “For many, there’s a stigma around seeking assistance, often rooted in the belief that it’s a sign of failure or that others might need it more
Kenny emphasises that schemes like Pension Credit aren’t handouts but recognition of people’s lifetime contributions. She added: “No one should feel shame for seeking the help they need to live with dignity and comfort in later life.”
The expert suggests that viewing support as earned rather than charity could help shift pensioners’ perspectives.