Hundreds of thousands of people in the UK could be entitled to an annual income boost of nearly £4,000 through Pension Credit, a benefit that many are unaware of. This financial aid is specifically designed to provide additional support for older individuals on low incomes, including both singles and couples.
The Daily Record reports that almost 1.4 million older people across the UK are currently receiving this means-tested benefit, which could offer nearly £4,000 in extra assistance over the coming year. However, there remain 880,000 eligible pensioners who are not claiming the benefit they are entitled to, according to the Department for Work and Pensions (DWP).
Some elderly individuals believe that having savings or owning their home would disqualify them from this means-tested benefit, which can also help with housing costs, heating bills and Council Tax. Recently, the DWP confirmed that nearly 78 percent of all new Pension Credit claims are processed – from initial application to award decision letter – within the target timeframe of 50 working days.
This suggests that older people on a low income making a new claim this month, particularly those living alone, could receive their first payment and any arrears by February. It’s vital for older individuals, whether single, married or cohabiting, to ensure they’re claiming all the additional financial support they’re entitled to this winter. This is particularly important in light of the 10 percent price cap increase that was implemented last month.
Changes to the eligibility rules for the Winter Fuel Payment, which can be worth up to £300, mean that those claiming Pension Credit will automatically qualify. Furthermore, new claims made before December 21 will also be eligible for a backdated payment.
Who can claim Pension Credit?
There are two types: Guarantee Credit and Savings Credit. To be eligible 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 – £218.15 for a single person and £332.95 for a couple.
These amounts could be higher if you’re disabled, a carer or have certain housing costs. Savings Credit is only available if you reached State Pension age before April 6, 2016, or if you have a partner who reached State Pension age before this date and was already receiving it.
You also need a 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 and £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 provide up to £17.01 a week for a single person and £19.04 a week for a couple (married, in a civil partnership or cohabiting). The exact amount you’ll receive depends on your income and savings, which includes assumed income from savings and capital over £10,000.
To check eligibility for Pension Credit, older people, or their friends and family, can quickly verify their eligibility and get an estimate of what they may receive by using 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 from 8am to 6pm, Monday to Friday. Expert help and advice is also available from Independent Age, Income Max, Citizens Advice, and Age UK.
Other help
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, and A discount on the Royal Mail redirection service if you are moving house.
In May 2019, the law was altered so that a “mixed age couple” – a pair where one partner is of State Pension age and the other is not – are deemed to be a ‘working age’ couple when assessing entitlement to means-tested benefits. This implies they cannot claim Pension Credit or pension age Housing Benefit until both partners reach State Pension age.
Prior to this DWP alteration, a mixed age couple could potentially claim the more generous State Pension age benefits when just one partner reached State Pension age. To make a claim, you can initiate your application up to four months before you attain State Pension age.
How to claim
You can claim at any point after you reach State Pension age but your claim can only be backdated for three months. This indicates you can receive up to three months of Pension Credit in your initial payment if you were eligible during that period.
You will require: 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 commence.
To verify your entitlement, ring the Pension Credit helpline on 0800 99 1234 or utilise the GOV. UK Pension Credit calculator here to discover how much you could receive.