The Department for Work and Pensions (DWP) has disclosed that nearly 78% of all new Pension Credit claims are processed from the initial application to award decision letter within 50 working days. As such, older people on low incomes who submit a new claim this month may receive their first payment and any arrears before the end of December.
However, Pensions Minister Emma Reynolds has confirmed that the DWP has “secured funding for additional staffing to improve processing times”. This follows Conservative MP Dr Luke Evans questioning the steps being taken to reduce the time it takes to process a new claim for the annual income boost, which is worth an average of £3,900.
The DWP has experienced a 152% increase in new claims after the announcement in July that Winter Fuel Payments will only be issued to older people on low incomes who are receiving a means-tested benefit such as Pension Credit, Universal Credit (for mixed-age couples), or Tax Credits. New Pension Credit claims made before December 21, 2024, which are later successful, will qualify for a backdated Winter Fuel Payment.
In a written response to Dr Evans last week, the Pensions Minister stated: “The most recent information on processing times for Pension Credit was published in the DWP Annual Report and Accounts published on 22nd July 2024. This shows that in 2023/24 DWP cleared 192,000 Pension Credit claims within the planned 50 working day timescale, equating to 77.7 per cent. The department has secured funding for additional staffing to improve processing times.”
Pension Credit claimants in Great Britain stand at nearly 1.4 million, despite certain myths leading some to believe savings or owning a home may invalidate their eligibility – this isn’t necessarily true. The means-tested benefit can not only aid financial stability for the elderly but also unlock wider support for housing costs, heating, and Council Tax, reports the Daily Record.
Who can claim Pension Credit
For those unsure about their eligibility, a detailed guide outlines how to claim Pension Credit, which comes in two forms: Guarantee Credit and Savings Credit. Guarantee Credit targets those at State Pension age (66), ensuring their income is supplemented up to £218.15 for singles or £332.95 for couples weekly; increased amounts may apply due to disabilities, caring duties, or specific housing costs.
In contrast, Savings Credit offers an extra financial boost to those with modest retirement savings. The Pension Credit amount varies based on individual income and savings, with assumed income from any capital over £10,000 included in this calculation.
To determine eligibility for Pension Credit, older individuals or their loved ones can swiftly check their eligibility and receive an estimate of potential benefits using the online Pension Credit calculator on GOV. UK.
Alternatively, pensioners can directly contact the Pension Credit helpline on 0800 99 1234 – lines are open from 8am to 6pm, Monday to Friday, where expert advice is readily available. If you qualify for Pension Credit, additional assistance is also accessible.
In May 2019, legislation was altered so that a ‘mixed age couple’ – a pair where one partner is of State Pension age and the other is not – are deemed a ‘working age’ couple when assessing 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, a mixed age couple could be eligible to claim the more generous State Pension age benefits when just one partner reached State Pension age. To use the calculator on GOV.UK, details of earnings, benefits and pensions, savings and investments are required. If you have a partner, their details will also be needed.
