Despite drastically increased efforts to raise awareness and the tightened restrictions on Winter Fuel Payments, hundreds of thousands of Brits that are eligible for Pension Credit still aren’t claiming their dues. On average the benefit alone can offer retirees a pension top-up of £3,900 a year on average according to government figures but with countless other additional benefits, freebies and discounts too.
850,000 people are believed to qualify for the Department for Work and Pension benefit but aren’t claiming it. Some of the most common reasons for this is the hefty 200-question application form and simply not knowing they are eligible. Finance expert Fiona Peake delved into the issue as many people could be needlessly scrapping pennies together to pay bills when help is available to them.
Some of the qualification criteria also tends to confuse people as it’s a means-tested benefit and therefore requires you to calculate your weekly income. This amount must be below £201.05 for a single person and £306.85 for couples according to the Ocean Finance expert.
While it can seem daunting trying to figure out what will and won’t count as income, and how your pension needs to be calculated, the government has already provided an online solution. The Online calculator can let people know in minutes if they might be eligible for Pension Credit and even provide an estimate of how much they could get each week.
The test takes just a few minutes and requires information you’ll already know, such as when you or your partner were born, how much state pension you receive and what other benefits you qualify for. An additional calculator is also available for people who don’t get paid weekly and need help figuring out how much the weekly figure is.
You will still need to go through the application process to get Pension Credit but ignoring the online test or its results could mean you’re missing thousands of pounds each year. Fiona urged: “The cost-of-living crisis has hit older people hard. Aside from the immediate financial relief, claiming Pension Credit can help protect you against rising costs.
“With the energy price cap increasing once again at the start of January and food inflation remaining stubbornly high, claiming what you’re entitled to is a smart move. If you think you might qualify – or know someone who could – take five minutes to check.”
Additionally, charities like Turn2Us and Age UK also have independent benefit calculators. These take your details including income, disabilities, age and caring responsibilities to figure out if you qualify for any of the benefits on offer from the DWP.
The expert added: “Many people assume that claiming Pension Credit is a complicated process or that they won’t qualify because they have savings or a small private pension. In reality, it’s a straightforward process, and the rules are more generous than you might think. It’s always worth checking; even if you only receive a small amount of Pension Credit, it could unlock other support worth thousands of pounds.”
This is because Pension Credit is a “gateway benefit” because it also unlocks your eligibility for things like council tax reductions, cold weather payments, free TV licences if you’re over the age of 75 and Winter Fuel Payments. Altogether, Ocean Finance estimates these additional extras could even be worth more than the full £3,900 Pension Credit offers.