A single letter from the Department for Work and Pensions (DWP) could potentially see some older people thousands of pounds better off. Recent DWP statistics reveal that 12.9 million individuals are currently claiming the State Pension.
Of these, 4.1 million are on the New State Pension (post-April 2016), while 8.8 million receive the Basic (or Old) State Pension (pre-April 2016). Both the New and Basic State Pensions are set to rise by 4.1% in April under the earnings growth measure of the Triple Lock.
However, additional elements, along with working age and disability benefits, will increase by 1.7% under the September Consumer Price Index (CPI) inflation rate. The DWP will send a letter to every pensioner before the payments increase on April 7, with most of these typically arriving in March.
It’s crucial that recipients give these letters their full attention, to make sure the amount they will receive is accurate. A vital leaflet included with the letter could potentially boost annual income by an average of £4,200.
This leaflet provides information about claiming Pension Credit, urging pensioners to verify their entitlement. It’s essential that all older people – whether single, married or cohabiting – ensure they are claiming all the additional financial support they are entitled to in 2025 to help augment their income and counterbalance the ongoing cost of living crisis, as reported by the Daily Record.
The eligibility rules for the annual Winter Fuel Payment have been revised, meaning only pensioners receiving certain benefits, such as Pension Credit, will be eligible for the 2024/25 payment. However, older individuals who successfully claim before September this year will qualify for the 2025/26 payment and a higher rate of the devolved Pension Age Winter Heating Payment (Scotland-only).
Pension Credit is the most under-claimed benefit, aimed at providing additional financial support for older people on a low income – singles and couples. Nearly 1.4 million older people across Great Britain are missing out.
Some older people mistakenly believe that having savings or owning their home makes them ineligible for the means-tested benefit, which can also provide access to help with housing costs, heating bills and Council Tax. An award of just £1 per week is enough to unlock other support.
Who qualifies for 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 (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.
If you reached State Pension age before April 6, 2016, or if your partner reached State Pension age before this date and was already receiving it, you may be eligible for certain benefits. You must have a 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. If you’re disabled, a carer, or have certain housing costs, you might be eligible for more.
Savings Credit can provide up to a certain amount. The exact amount you’ll receive depends on your income and savings.
Checking eligibility
Any income from savings and capital over £10,000 is taken into account. To check eligibility, use the calculator on GOV. UK.
You’ll need details of earnings, benefits and pensions, and savings and investments. If you have a partner, you’ll need their information as well. You will be presented with a series of questions with multiple-choice answer options.
The information required 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
The Pension Credit calculator then reveals the potential weekly benefit amount. Claims can be initiated up to four months prior to reaching State Pension age.
While claims can be made anytime after reaching State Pension age, they can only be backdated for three months.
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