With a historical trend of underclaiming, Pension Credit comes into focus as retirees look to claim this year’s Winter Fuel Payments.
As voting approaches on eligibility for Winter Fuel Payments, there is crucial information Britons need to understand for claiming the “gateway benefit” of Pension Credit.
The principal advantage of Pension Credit lies in supplementing your income to £218.15 weekly for singles or £332.95 for couples.
Typically, those with a pension income above these figures, such as the full new state pension rate of £221.20 weekly, are not eligible.
But Martin Lewis emphasises that only 25% of retirees get the full amount due to fewer qualifying years, meaning many could still be eligible.
Furthermore, some individuals may be entitled to Pension Credit beyond the usual income thresholds if they have certain disabilities, savings, housing costs, or care responsibilities.
There are additional qualifying criteria that individuals must meet to be eligible for Pension Credit. They must reside in England, Scotland or Wales and have reached the State Pension age.
Savings and investments exceeding £10,000 will affect your Pension Credit amount, with every £500 over this threshold counting as £1 of weekly income. For instance, if you have savings of £11,000, this equates to £2 income per week.
When calculating income for Pension Credit purposes, your partner’s income is included if you’re part of a couple. This includes state pension, other pensions, earnings from employment and self-employment, and most social security benefits such as Carer’s Allowance.
If you’ve deferred a pension, the potential weekly amount will still count towards your income.
Certain benefits are not counted towards your income.
These include: Adult Disability Payment, Attendance Allowance, Christmas Bonus, Child Benefit, Disability Living Allowance, Personal Independence Payment, social fund payments like Winter Fuel Allowance, Housing Benefit and Council Tax Reduction.
