Hundreds of thousands of state pensioners are being urged to claim Pension Credit – a benefit that could unlock access to as many as five other financial perks.
Latest data from the Department for Work and Pensions (DWP) estimates that as many as 700,000 eligible pensioners are missing out on this vital support.
Pension Credit, worth an average of £4,200 a year, is designed to top up the income of low-income pensioners, helping them achieve a more comfortable standard of living.
The benefit is available even to those who own their homes or have some savings, making it more accessible than some may assume.
According to research by Royal London, many pensioners are unaware that claiming Pension Credit also provides access to additional financial benefits.
More than a fifth (21%) of survey respondents said they were unaware they would be entitled to any other benefits if they qualified for Pension Credit, including:
- A discount on the Royal Mail redirection service if you move house – 93% unaware
- Help with rent costs through Housing Benefit – 57% unaware
- Help with NHS dental treatment, glasses and transport costs if you get certain types of Pension Credit – 47% unaware
- Help with Council Tax through the Council Tax Discount – 43% unaware
- A free TV Licence if you’re aged 75 or older – 41% unaware.
As part of its Take The Credit campaign, Royal London is partnering with social enterprise Pocket Power to offer pensioners a free 30-minute phone call to help them save on household bills, and to support with Pension Credit applications.
On average, Pocket Power says one call saves each person £250, which could provide critical support this winter.
Sarah Pennells, consumer finance specialist at Royal London said: “There is still a significant gap in awareness around Pension Credit and the other benefits that claiming it entitles people to. But our research also found that there is a sense of embarrassment associated with applying for benefits, when there should be absolutely no shame in accepting help.
“Despite the deadline having passed for applying for Pension Credit to allow you to claim the Winter Fuel Payment for this winter, pensioners can still check if they qualify for Pension Credit and apply to receive a valuable financial top-up in the coming year.
“Although the restriction of the Winter Fuel Payment has encouraged many thousands to apply for Pension Credit, other benefits that you could be able to claim because you’re receiving Pension Credit, such as help with housing costs through Housing Benefit and a reduction in Council Tax, could be worth much more than the Winter Fuel Payment.
“The easiest way to check if you qualify for Pension Credit is to use one of the free online benefit calculators, and, once you know that you can claim, you can apply via the Welcome to GOV.UK website, post or phone.”
Who is eligible to claim Pension Credit?
To claim Pension Credit, a person must live in England, Scotland or Wales and have reached the state pension age (currently 66 and over). They or their partner must also be receiving housing benefits.
If this applies, the person must then work out their total weekly income. This should include the state pension, other pensions, earnings from employment and self-employment, and most social security benefits, such as Carer’s Allowance.
Not all benefits are counted as income. For example, the following are not counted and shouldn’t be included in the calculation:
- Adult Disability Payment
- Attendance Allowance
- Christmas Bonus
- Child Benefit
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Social fund payments, such as the Winter Fuel Allowance
- Housing Benefit
- Council Tax Reduction.
Individuals are most likely to be eligible if their total weekly income is roughly under £220. Joint households may find themselves more likely to be eligible if their total weekly income is roughly under £332.
However, if their income is higher, they might still be eligible so it’s worth checking the Government Pension Credit calculator just in case. Those who have £10,000 or less in savings and investments will see no impact on their Pension Credit.
Those who have more than £10,000, every £500 over £10,000 counts as £1 income a week. For example, if you have £11,000 in savings, this counts as £2 income a week.
To apply for the benefit, people can reach the helpline by telephone on 0800 99 1234 or by textphone on 0800 169 0133. They can also apply online here.
