The Department for Work and Pensions (DWP) is calling on individuals over the age of 66 to complete a “quick online application”. Doing just that could unlock an average of £4,200 annually in Pension Credit for those born before 1957.
Furthermore, some people could unlock additional assistance for heating costs such as the £150 Warm Home Discount, Winter Fuel Payment, and Pension Age Winter Heating Payment. In a recent update on X (formerly known as Twitter ), the DWP pointed out that it takes “roughly 16 minutes to apply online” for Pension Credit via GOV.UK.
An estimated 760,000 state pensioners are eligible for this means-tested benefit but aren’t claiming it. Pension Credit claims are processed within the target period of 50 working days from the initial application to the decision letter, meaning that older people with low income who apply this month could see their first payment and any backdated amounts by the end of March, , reports the Daily Record.
It’s vital for all seniors – whether single, married, or cohabiting – to ensure they’re claiming all the financial support available to them this year to help manage the rising cost of living. Pension Credit, the most under-claimed benefit in the UK, is designed to provide additional financial support for older people on a low income. Currently, nearly 1.4 million older people across Great Britain are receiving this means-tested benefit, which could provide an average of £4,200 in extra support in the coming months.
Despite common misconceptions, having savings or owning a home does not necessarily disqualify one from receiving Pension Credit, which can also help with housing costs, heating bills and Council Tax. Even an award of just £1 per week can unlock other forms of support.
Here’s a brief overview of Pension Credit, including eligibility criteria, how to apply, potential benefits, and where to find assistance with the application process…
Eligibility for Pension Credit
Pension Credit comes in two forms: Guarantee Credit and Savings Credit. To qualify for Guarantee Pension Credit, you must be of State Pension age (currently 66).
Your weekly income should be less than the minimum amount the UK Government deems necessary for living. This minimum is set at £218.15 for single individuals and £332.95 for couples.
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You have qualifying income of at least £189.80 a week for a single person and £301.22 a week for a couple
- 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
Guarantee Credit tops up your weekly income to a certain level. You might be eligible for more if you’re disabled, a carer, or have certain housing costs.
Savings Credit can provide up to a certain amount. The exact amount you’ll receive depends on your income and savings.
Any income from savings and capital over £10,000 is taken into account.
How to check your eligibility
You can check your eligibility for Pension Credit via the government’s Pension Credit calculator here.
To use the calculator you’ll need details concerning yourself and your partner if applicable when answering some questions included in the calculator:
- Any savings, investments or bonds you have
- Whether you are registered blind
- How much you receive each week for any benefits you get
- Your residential status
- Any employment earnings
- Where in the UK you live
- Which benefits you currently receive
- Whether someone is paid Carer’s Allowance to look after you
- How much you get each week from pensions – State Pension, private and work pensions
- Your date of birth
Once you’ve answered these questions, a summary screen displays your responses, allowing you to go back and alter any answers before submitting. The Pension Credit calculator then shows how much benefit you could receive each week.
How to apply
You can start applying for Pension Credit within the four months before you reach the State Pension age and any time after – in this case your claim could be backdated up to three months prior. You will also need the following information on hand before starting the application process:
- Information regarding income, savings, and investments you may have as well as this information dating back to up to three months if you’re backdating the claim.
- Your National Insurance Number
- Your bank details
You can apply online through GOV.UK here. Otherwise, you can apply by post by printing out and filling in the Pension Credit claim form and sending it to the DWP Pension Service or call the claim line to request a form.
Full details of the application process can be found here.