Over 1m state pensioners could be due annual DWP income boost of nearly £4,000
The Department for Work and Pensions (DWP) recently confirmed that nearly 78 per cent of all new claims for Pension Credit are processed within 50 days
Martin Lewis shares advice on pension credit payments
The Department for Work and Pensions (DWP) has recently confirmed that nearly 78 per cent of all new claims for Pension Credit are processed - from initial application to award decision letter - within the target timeframe of 50 working days.
This means older people on a low income making a new claim this month, especially those living on their own, could receive their first payment and any arrears by mid-November.
Despite the full New State Pension now being worth £221.20 per week and the full Basic State Pension worth £169.50, data from the Office for National Statistics (ONS) shows that in 2021, some 3.3 million people aged 65 years and over were living alone in England and Wales, with around 337,000 single pensioner households recorded in Scotland.
It's crucial for older people - single, married or cohabiting - to make sure they are claiming all the additional financial support they are entitled to this winter to help offset the looming price cap increase of 10 per cent on October 1.
The recent change to eligibility for the Winter Fuel Payment - worth up to £300 - means that Pension Credit claimants will automatically qualify and claims made before December 21 will qualify for a backdated payment.
Pension Credit, a benefit specifically designed to provide additional financial support for older people on a low income - both singles and couples - is the most under-claimed. Nearly 1.4 million older individuals across Great Britain, including over 125,000 residing in Scotland, are currently receiving this means-tested benefit that could offer nearly £4,000 in extra support for the upcoming year.
However, recent data from the DWP indicates that there are still 880,000 eligible pensioners not claiming the benefit they are entitled to. A new 'week of action' campaign has been launched with the aim of increasing the uptake of the benefit, reports the Daily Record.
Some elderly individuals believe that because they have savings or own their home, they would not qualify for the means-tested benefit, which can also provide assistance with housing costs, heating bills and Council Tax.
An award of just £1 per week is sufficient to unlock other forms of support.
Below is a summary of the benefit, including who should check eligibility, how to go about it, how much you could receive and where to get help filling in the form.
Who can claim Pension Credit?
There are two types of Pension Credit - Guarantee Credit and Savings Credit.
To be eligible for Guarantee Pension Credit, you must be of State Pension age (66). Your weekly income needs to be less than the minimum amount the UK Government says you need to live on.
This is £218.15 for a single person and £332.95 for a couple - this amount could be higher if you're disabled, a carer or have certain housing costs.
Savings Credit is only available under certain conditions:
- 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
- you have qualifying income of at least £189.80 a week for a single person and £301.22 a week for a couple
The potential amount you could receive
Guarantee Credit boosts your weekly income to a certain level:
- £218.15 for a single person
- £332.95 for a couple (married, in a civil partnership or cohabiting)
If you're disabled or a carer, or have specific housing costs, you might be eligible for more.
Savings Credit can provide up to a certain amount:
- £17.01 a week for a single person
- £19.04 a week for a couple (married, in a civil partnership or cohabiting).
The exact sum you'll receive depends on your income and savings. This includes assumed income from savings and capital over £10,000.
How to verify eligibility for Pension Credit
Older individuals, or their friends and family, can swiftly check eligibility and get an estimate of potential benefits using the online Pension Credit calculator on GOV. UK here.
Alternatively, pensioners can reach out to the Pension Credit helpline directly to make a claim on 0800 99 1234 - lines are open from 8am to 6pm, Monday to Friday.
Expert assistance and advice is also accessible from:
More details about claiming Pension Credit can be fond on GOV.UK here.
Additional support if you qualify for Pension Credit
If you're eligible for Pension Credit, you can also receive other forms of 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
- A discount on the Royal Mail redirection service if you are moving house
Mixed age older couples and Pension Credit
In May 2019, legislation was altered so that a 'mixed age couple' - a pair where one partner is of State Pension age and the other is below it - are deemed to be a 'working age' couple when assessing entitlement to means-tested benefits.
This implies that they are unable to claim Pension Credit or pension age Housing Benefit until both of them reach the State Pension age. Prior to this change by the DWP, a mixed-age couple could be eligible to claim the more generous State Pension age benefits when just one partner reached the State Pension age.
Here's how to use the Pension Credit calculator
To use the calculator on GOV.UK, you will need details of:
earnings, benefits and pensions
savings and investments
If you have a partner, you'll need their details as well. You will be presented with a series of multiple-choice questions.
This includes:
- Your date of birth
- Your residential status
- Where in the UK you live
- Whether you are registered blind
- Which benefits you currently receive
- How much you receive each week for any benefits you get
- 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
- Any employment earnings
- Any savings, investments or bonds you have
Once you've answered these questions, a summary screen will display your responses, allowing you to go back and modify any answers before submitting. The Pension Credit calculator will then show how much benefit you could receive each week.
All that's left is to follow the link to the application page to find out exactly what you will get from the DWP, including access to other financial support.
There's also an option to print off the answers you provide using the calculator tool to help you fill out the application form faster without having to look up the same details again. Try the Pension Credit Calculator for yourself or a family member to ensure you're receiving all the financial support you're entitled to claim.
Who can't use the Pension Credit calculator?
The calculator cannot be used if you or your partner are deferring your State Pension, if you own more than one property, are self-employed, or have housing costs (such as service charges or Crown Tenant rent) which are neither mortgage repayments nor rent covered by Housing Benefit, you may be eligible for certain benefits.
To make a claim, you can start your application up to four months before you reach State Pension age. You can claim any time after you reach State Pension age but your claim can only be backdated for three months.
This means you can get up to three months of Pension Credit in your first payment if you were eligible during that time.
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 apply online if you have already claimed your State Pension and there are no children or young people included in your claim. To check your entitlement, phone 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.
