The Department for Work and Pensions (DWP) 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 could receive their first payment and any arrears by the end of November.
It’s crucial for older people on a low income – 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 means that around 10 million pensioners will now miss out on annual payments of between £100 and £300 – unless they are in receipt of an income-related benefit such as Pension Credit.
New claims for Pension Credit made before December 21, 2024 which turn out to be successful, will also qualify for a backdated Winter Fuel Payment.
The most under-claimed benefit, specifically aimed at providing additional financial support for older people on a low income – singles and couples – is Pension Credit. Some 1.4 million older people across Great Britain, including more than 125,000 living in Scotland, are currently receiving the means-tested benefit that could provide nearly £4,000 in extra support during the year ahead.
However, recent data from the DWP indicates that there are still 880,000 pensioners eligible for benefits they aren’t claiming, reports the Daily Record.
Many elderly individuals mistakenly believe that their savings or home ownership disqualify them from means-tested benefits, which can also provide assistance with housing costs, heating bills and Council Tax.
A mere award of £1 per week is sufficient to unlock additional support.
Here’s a brief overview of the benefit, including eligibility checks, application process, potential amounts, and where to find help with form completion.
Who is eligible 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. These amounts may be higher if you’re disabled, a carer, or have certain housing costs.
Savings Credit is only available under specific 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
How much could you potentially receive?
Guarantee Credit supplements 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.
Checking eligibility
To utilise the calculator on GOV. UK, you’ll need details of:
- earnings, benefits and pensions.
- savings and investments.
You’ll require the same information for your partner if you have one. You will be presented with a series of questions with multiple-choice answer options.
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 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.
All you have to do next is 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 give using the calculator tool to help you complete the application form quicker without having to look out the same details again. Try the Pension Credit Calculator for yourself or your family member to make sure you’re receiving all the financial support you are entitled to claim.
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.
