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There are 1.4 million people receiving support through Pension Credit across the country. But according to the Department for Work and Pensions (DWP), there are 880,000 households which could be entitled to help but do not claim it.
They could be missing out on an average annual income boost of £3,900 but wrongly believe that they would not be eligible for the income-related benefit as they have savings or own their home. An award of just £1 per week is enough to unlock extra support and discounts to help with housing costs, heating bills and Council Tax.
Pension Credit can provide an income boost for single people on the New State Pension who have a total weekly income below £218.15, or couples with a combined weekly income of less than £332.95. People over 65 who reached State Pension age before April 6, 2016, may still qualify for Pension Credit if their weekly income is less than £260.68 for single people, or £380.55 for married couples or those in a civil partnership.
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The DWP said there are several reasons why older people may not think they would qualify for Pension Credit, Daily Record reports. Older people may incorrectly think they are not eligible because they:
- Have savings
- Own their own home
- May be working
- May be getting a small occupational pension
- May have been turned down in the past
Other factors may be that they:
- Do not want to be seen as needing to claim
- Feel that they’re able to manage
- Do not think it’s worth applying – as the amount they get will be very small
- Do not recognise themselves as a Pension Credit claimant
- Have not got around to it
- Think it’s a complex and confusing subject
- Already get other help and do not want to mess up the benefits they are getting
The DWP recently confirmed that 78 per cent of Pension Credit claims are processed within 50 working days, which means a new application submitted this month could be completed before the end of September.
Pension Credit claims can also be backdated by up to three months, with any arrears paid with the first payment. You can check your eligibilityfor Pension Credit and get an estimate of what you could receive by using the online Pension Credit calculator on GOV.UK here.
Alternatively, you can contact the Pension Credit helpline to make a claim on 0800 99 1234 – lines are open 8am to 6pm, Monday to Friday. The DWP published a YouTube video with a step-by-step guide to using the online calculator which you can watch here.
What is Pension Credit?
Pension Credit gives people extra money to help with their living costs if they are over State Pension age and on a low income. It can also provide access to a range of other benefits.
The benefit tops up income to a minimum of £218.15 per week for single pensioners and £332.95 for couples – and could be more if a person has a disability or caring responsibilities.
What other help can you get if you are on Pension Credit?
If you qualify for Pension Credit you can also get other help including:
- 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
- A discount on the Royal Mail redirection service if you are moving house
Mixed aged older couples and Pension Credit
In May 2019, the law for ‘mixed age couples’ – a couple where one partner is of State Pension age and the other is under it. A ‘mixed age couple’ is now considered to be a ‘working age’ couple when checking entitlement to means-tested benefits.
This means they cannot claim Pension Credit or pension age Housing Benefit until they are both State Pension age. Before this DWP change, a mixed age couple could be eligible to claim State Pension age benefits when just one of them reached State Pension age.
How to use the Pension Credit calculator
To use the calculator on GOV.UK, you will need details of your earnings, benefits, pensions, savings and investments. You will also need the same details for your partner.
There will be a number of questions with multiple choice answer options. These include:
- 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 have answered these questions, a summary screen will show your responses, giving you the chance to go back and change any answers before submitting. The Pension Credit calculator then displays how much benefit you could receive each week.
You then can 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 is an option to print off the answers you have given to help you complete the application form quicker.
Who cannot use the Pension Credit calculator?
You cannot use the calculator if you or your partner:
-
Are deferring your State Pension
-
Own more than one property
-
Are self employed
-
Have housing costs (such as service charges or Crown Tenant rent) which are neither mortgage repayments nor rent covered by Housing Benefit
How 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
-
Your bank account details, if you are applying by phone or by post
If you want to backdate your claim, you will 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.
