New data from the Department for Work and Pensions (DWP) reveals that there are currently 12.9 million people claiming the State Pension, including over 1.1m residing in Scotland. Of these, 4.1m are on the New State Pension (post-April 2016), while 8.8m are receiving the Basic (or Old) State Pension (pre-April 2016).
The New and Basic State Pensions are set to increase by 4.1 per cent in April, under the earnings growth measure of the Triple Lock. However, additional elements, along with working age and disability benefits, will rise by 1.7 per cent under the September Consumer Price Index (CPI) inflation rate.
Every pensioner will receive a letter from the DWP before the payments increase on April 7, typically arriving in March. It’s crucial for all recipients to read this letter to ensure the amount they will receive is accurate.
They should also pay attention to an important leaflet included with the letter, which could potentially boost their annual income by an average of £4,200. Each year, the DWP includes information about claiming Pension Credit along with the uprating to ensure every pensioner directly receives guidance on the means-tested benefit, urging them to check their entitlement.
It’s vital for all older individuals – whether single, married or cohabiting – to ensure they are claiming all the additional financial support they are entitled to in 2025 to help enhance their income and counteract the ongoing cost of living crisis, reports the Daily Record.
The annual Winter Fuel Payment eligibility rules have been altered, meaning only pensioners receiving certain benefits, such as Pension Credit, will be eligible for the 2024/25 payment. However, older individuals who successfully claim before September this year will qualify for the 2025/26 payment and a higher rate of the devolved Pension Age Winter Heating Payment (exclusive to Scotland).
Pension Credit, the most under-claimed benefit, is designed to provide additional financial support for low-income older people – both singles and couples. Currently, nearly 1.4 million older people across Great Britain, including over 125,000 residing in Scotland, are receiving this means-tested benefit.
Some older people mistakenly believe that having savings or owning their home makes them ineligible for this means-tested benefit, which can also provide help with housing costs, heating bills and Council Tax. An award of just £1 per week can unlock other forms of support.
Here’s an overview of the benefit, including who should check eligibility, how to apply, potential amounts you could receive, and where to find help with the application process.
There are two types of Pension Credit – Guarantee Credit and Savings Credit.
To qualify for Guarantee Pension Credit, you must be of State Pension age (66) and your weekly income must be less than the minimum amount the UK Government says you need to live on.
The weekly income is topped up to £218.15 for a single person and £332.95 for a couple by Guarantee Credit. This amount could be higher if you’re disabled, a carer or have certain housing costs.
Savings Credit can provide up to: The exact amount you’ll receive depends on your income and savings, including assumed income from savings and capital over £10,000. To check eligibility for Pension Credit, older people, or their friends and family, can use the online Pension Credit calculator on GOV.
UK. 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: More details about claiming Pension Credit can be found on GOV. UK here..
If you qualify for Pension Credit, you can also get other help. 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 implies that they are unable to apply for Pension Credit or pension age Housing Benefit until both parties reach the State Pension age. Prior to this change by the DWP, a mixed-age couple could qualify for the more generous State Pension age benefits when just one partner reached the State Pension age.
To utilise the Pension Credit calculator on GOV. UK, you’ll need information about your earnings, benefits, pensions, savings, and investments.
If you have a partner, you’ll need their details as well. You will be asked a series of multiple-choice questions.
You can claim any time after you reach State Pension age but your claim can only be backdated for three months.
This means you could receive up to three months of Pension Credit in your first payment if you were eligible during that time. To make a claim, you will need your National Insurance number, information about your income, savings and investments, and 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. You can use the online service to apply if you have already claimed your State Pension and there are no children or young people included in your claim.
To check your entitlement, call 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.