The Department for Work and Pensions (DWP) has unveiled a strategy to proactively reach out to individuals of State Pension age who are on Housing Benefit but might also qualify for Pension Credit, which they have not yet claimed. This move aims to enhance the claim rate of this income-related benefit that could offer an extra £3,900 a year in State Pension income and eligibility for Winter Fuel Payments.
Sir Stephen Timms, the Minister for Social Security and Disabilities, explained that the DWP doesn’t need HM Revenue and Customs (HMRC) data to “match Housing Benefit customers with Pension Credit” because it can use existing departmental information. In his written reply to Labour MP Paula Barker, Sir Stephen elaborated: “The government is actively working with external partners and local authorities to boost the uptake of Pension Credit and to target additional support to the poorest pensioners.”
He also mentioned: “In November we will also be directly contacting pensioners who are in receipt of Housing Benefit but who may be eligible for, but not currently claiming, Pension Credit – building on last year’s ‘Invitation to Claim’ trial.”
The DWP Minister has signalled intentions for the long haul, aiming to “bring together the administration of Pension Credit and Housing Benefit as soon as operationally possible”. This move is designed to guarantee that “pensioner households receiving Housing Benefit also receive any Pension Credit to which they are entitled.”
Who is eligible for Pension Credit?
There are two types of Pension Credit – Guarantee Credit and Savings Credit. To qualify for Guarantee Pension Credit, you must be of State Pension age (currently 66). Your weekly income needs to be less than the minimum amount the UK Government says you need to live on, reports the Daily Record.
This is £218.15 for a single person and £332.95 for a couple. These amounts could be higher if you’re disabled, a carer, or have certain housing costs.
You can only get 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 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).
You might be able to get more than this if you’re disabled, a carer, or have certain housing costs.
The exact amount you’ll receive depends on your income and savings. This includes assumed income from savings and capital over £10,000.
Here’s how to check if you’re eligible for Pension Credit
Elderly 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 here.
Alternatively, pensioners can reach out to the Pension Credit helpline directly to make a claim on 0800 99 1234 – lines are open from 8am to 6pm, Monday to Friday.
Expert guidance and advice is also accessible from:
Additional assistance if you receive Pension Credit
If you’re eligible for Pension Credit, you can also avail other help, such as:
- 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 or Winter Fuel Payments
- A discount on the Royal Mail redirection service if you are moving house
Mixed age older couples and Pension Credit
In May 2019, the law was altered so a ‘mixed age couple’ – a pair where one partner is of State Pension age and the other is below it – are deemed 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 utilise the Pension Credit calculator
To use the calculator on GOV. UK, you will require details of:
You’ll need the same details 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 the questions, a summary screen will display your responses, giving you the opportunity to revise any answers before submitting. The Pension Credit calculator will then reveal how much benefit you could receive each week.
Next, simply 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 your responses from the calculator tool to help speed up the application process without having to search for the same details again.
How to make a claim
You can begin your application up to four months before you reach State Pension age. You can claim at any time after you reach State Pension age but your claim can only be backdated for three months.
This means you could receive up to three months of Pension Credit in your first payment if you were eligible during that period.
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
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.
