Huge numbers of pensioners are missing out on significant financial support they could be claiming.
Pension Credit is the most under-claimed benefit specifically designed to provide extra financial support for older people on a low income – both singles and couples. It is currently received by almost 1.4 million older people across Great Britain, including more than 126,800 residing in Scotland. This means-tested benefit could offer nearly £4,000 in additional support during the upcoming year.
However, recent figures from the DWP suggest that there are still 880,000 pensioners eligible for benefits they aren’t claiming, as reported by the Daily Record.
Many elderly people are under the false impression that owning a property or having savings disqualifies them from receiving means-tested benefits. These benefits can offer help with housing expenses, heating bills and Council Tax.
Even a small award of just £1 per week can lead to additional support.
Here’s a quick guide to the benefit, including who is eligible, how to apply, potential amounts, and where to find assistance with the application.
Who qualifies for Pension Credit?
Pension Credit comes in two forms – Guarantee Credit and Savings Credit.
To be eligible for Guarantee Pension Credit, you must be of State Pension age (66). Your weekly income should be less than the minimum amount the UK Government deems necessary for living.
This is £218.15 for a single person and £332.95 for a couple – these figures could be higher if you’re disabled, a carer or have certain housing costs.
You can only receive Savings Credit if:
- 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 tops up your weekly income to:
- £218.15 for a single person
- £332.95 for a couple (married, in a civil partnership or cohabiting)
You might be able to get more than this if you’re disabled or a carer, or you have certain housing costs.
Savings Credit can give you up to:
- £17.01 a week for a single person
- £19.04 a week for a couple (married, in a civil partnership or cohabiting)
The exact amount depends on your income and savings. Your income includes assumed income from savings and capital over £10,000.
Fastest way to check eligibility for Pension Credit
Older individuals, or their friends and family, can swiftly verify their eligibility and get an estimate of potential benefits by using the online Pension Credit calculator on GOV. UK.
Alternatively, pensioners can directly contact the Pension Credit helpline to make a claim at 0800 99 1234 – lines are open from 8am to 6pm, Monday to Friday.
Independent Age provides free and confidential advice. Their helpline number is 0800 319 6789, and they can also be reached via email at [email protected].
Additional assistance if you receive Pension Credit
If you qualify for Pension Credit, you may also be eligible for other forms of help.
- 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 and Winter Fuel Payment
- 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 was altered so that a ‘mixed age couple’ – a couple where one partner is of State Pension age and the other is under it – are considered to be a ‘working age’ couple when checking entitlement to means-tested benefits.
This implies they cannot claim Pension Credit or pension age Housing Benefit until both partners reach State Pension age. Prior to this DWP change, a mixed age couple could be eligible to claim the more generous 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:
You’ll need the same details for your partner if you have one. You’ll be faced with a series of questions, each offering multiple choice answers.
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 responded to these queries, a summary screen will display your answers, giving you the opportunity to revise any responses before final submission. The Pension Credit calculator then reveals the potential weekly benefit you could receive.
All that’s left to do is follow the link to the application page to discover exactly what you’ll receive from the DWP, including access to other financial support.
There’s also an option to print off the responses you’ve provided using the calculator tool, aiding in a quicker completion of the application form without needing to recall the same details.
Who cannot use the Pension Credit calculator?
The calculator isn’t suitable 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 initiate your application up to four months prior to reaching State Pension age. You can claim at any point 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’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.
Apply online
You can use the online service if:
- you have already claimed your State Pension
- 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.
