A State Pension top up worth an average £4,300 is not being claimed by about 760,000 pensioners. Almost 1.4 million older people in the UK receive Pension Credit currently, but hundreds of thousands are missing out on the means-tested benefit.
Pension Credit can provide an average £4,300 this financial year. The Department for Work and Pensions (DWP) has been encouraging people to check if they are eligible. Those who could receive the income boost include married pensioners. Their joint weekly income would be topped up to £346.60 while single pensioners would see their weekly income increased to £227.10.
The DWP has said 78% of new Pension Credit claims are processed within 50 working days, according to the Daily Record.
For those on a low income over State Pension age, which is 66 for men and women, Pension Credit can provide extra money to help towards the cost of living.
Carers, the severely disabled or those responsible for a child or young person might also be eligible for the extra help.
The benefit can be given even to those who have other sources of income, savings or own their own home.
Getting Pension Credit doesn’t mean you can’t get other help, such as Housing Benefit, Cold Weather Payments or reduced Council Tax.
To qualify for Pension Credit, a claimant must live in England, Wales or Scotland and have reached State Pension age.
Anyone with a partner should say so on their application. A partner can be a husband, wife or civil partner or someone you live with as a couple without being married or in a civil partnership.
A person can apply if either they and their partner are of State Pension age or one of them is in receipt of Housing Benefit for people over State Pension age.
The Government counts the following as income for the purposes of Pension Credit: State Pension, other pensions, earnings from work and most social security benefits.
These benefits are not counted as income:
- Adult Disability Payment
- Attendance Allowance
- Child Benefit
- Christmas Bonus
- Council Tax Reduction
- Disability Living Allowance
- Housing Benefit
- Pension Age Disability Payment
- Personal Independence Payment
- Scottish Adult Disability Living Allowance
- social fund payments like Winter Fuel Payment
A personal or workplace pension which has not been claimed yet still counts as income. For anyone who has deferred their State Pension, the amount of State Pension you would get is counted as income too.
Savings and investments of £10,000 or less will not affect your Pension Credit, but every £500 over that amount is counted as £1 income per week. So for example £12,000 in savings will count as £4 income per week.
Those whose Pension Credit applications are successful will automatically receive Cold Weather Payments and be eligible to apply for a free TV licence if aged 75 or over.
They will also be eligible for help with NHS costs if they receive the Guarantee Credit part of Pension Credit.
An application can be started four months before reaching State Pension age. Applications made after State Pension age is reached are backdated by three months.
Applications can be made online, by phone on the Pension Credit claim line 0800 99 1234 and by post at Freepost DWP Pensions Service 3.
There is no need to include a stamp on the envelope but applicants will need to download and print out the Pension Credit claim form or request one by phone.
