Changes in eligibility rules implemented by the Labour Government mean that around 10 million individuals over the State Pension age across Great Britain will no longer qualify for Winter Fuel Payments. Starting this winter, the annual heating bill assistance of up to £300 will only be available to those over 66 who are receiving an income-related benefit such as Pension Credit.
Despite many households feeling the pinch this winter due to the loss of this additional financial aid, many may not realise they could qualify for two separate benefits, collectively worth nearly £10,000 each year.
Pension Credit, aimed at boosting the annual income of those over the State Pension age on a low income, can increase yearly income by approximately £3,900 on average. Meanwhile, Attendance Allowance can offer extra financial support of up to £434 per month – equating to around £5,644 annually – for those with a long-term health condition or disability.
There are close to 12.7 million people over the State Pension age and the Department for Work and Pensions (DWP) estimates that 880,000 are eligible for Pension Credit but are not claiming the income-related benefit.
Similarly, it’s believed that over one million pensioners could qualify for Attendance Allowance, which isn’t affected by income or savings, is tax-free and isn’t considered as income when applying for Pension Credit, according to the Daily Record.
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.
