Successful new claims for Pension Credit submitted before December 21 will qualify for a Winter Fuel Payment. (Image: Getty Images)
The Department for Work and Pensions (DWP) has recently confirmed that nearly 78 percent of all new Pension Credit claims are processed within the target timeframe of 50 working days. This means that older people on a low income making a new claim this month could receive their first payment and any arrears by mid-December.
Despite the full new state pension now being worth £221.20 per week and the full basic state pension worth £169.50, data from the Office for National Statistics (ONS) shows that in 2021, some 3.3 million people aged 65 years and over were living alone in England and Wales, with around 337,000 single pensioner households recorded in Scotland.
It’s vital for older people – whether they’re single, married or cohabiting couples – to ensure they are claiming all the additional financial support they are entitled to this winter to help offset the higher price cap increase of 10 percent which came into force on October 1.
The recent change to eligibility for the Winter Fuel Payment – worth up to £300 – means that Pension Credit claimants will automatically qualify for the cash and claims made before December 21 will qualify for a backdated payment.
Pension Credit, a benefit specifically designed to provide additional financial support for older people on a low income, is the most under-claimed in the UK. Currently, nearly 1.4 million older individuals across Great Britain are receiving this means-tested benefit, which could offer an average of £3,900 in extra support throughout the upcoming year.
State pensioners can also backdate claims for this benefit (Image: Getty)
Despite this, recent data from the DWP indicates that there are still 880,000 eligible pensioners not claiming the benefit despite being entitled to it. In response, the DWP has launched a nationwide campaign to encourage more uptake of the benefit, reports the Daily Record.
Many older people mistakenly believe that having savings or owning their home disqualifies them from this means-tested benefit. However, Pension Credit can also provide assistance with housing costs, heating bills and Council Tax.
Even an award of just £1 per week can unlock other forms of support.
Here’s a quick overview of the benefit, including the fastest ways to check eligibility and where to get help with the application form.
Who is eligible for Pension Credit?
There are two types of Pension Credit – Guarantee Credit and Savings Credit.
To be eligible for Guarantee Pension Credit, you must be of state pension age (66). Your weekly income needs to be less than the minimum amount the UK Government says you need to live on.
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.
Hundreds of thousands of pensioners are thought to be eligible for Pension Credit but aren’t claimin (Image: Getty)
You can only receive 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 a qualifying income of at least £189.80 a week for a single person and £301.22 a week for a couple.
How much could I receive?
Guarantee Credit supplements your weekly income to:
- £218.15 for a single person
- £332.95 for a couple (married, in a civil partnership or cohabiting).
You may be eligible for more if you’re disabled, a carer, or have certain housing costs.
Savings Credit can provide up to:
- £17.01 a week for a single person
- £19.04 a week for a couple (married, in a civil partnership or cohabiting).
The exact amount you’ll receive depends on your income and savings. Your income includes assumed income from savings and capital over £10,000.
Quickest methods to verify eligibility for Pension Credit
Older individuals, or their friends and family, can swiftly check their eligibility and get an estimate of what they might receive by using the online Pension Credit calculator on GOV. UK here.
Alternatively, pensioners can reach out to the Pension Credit helpline directly to check if they should make a claim on 0800 99 1234 – lines are open from 8am to 6pm, Monday to Friday.
Additional support if you receive Pension Credit
If you qualify for Pension Credit, you can also receive 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 couple where one partner is of state pension age and the other is under it – is considered to be a ‘working age’ couple when checking entitlement to means-tested benefits.
This implies that they are unable to claim Pension Credit or pension age Housing Benefit until both of them reach the state pension age. Prior to this change by the DWP, a mixed-age couple could be eligible to claim the more generous state pension age benefits when just one of them reached the state pension age.
Here’s how to use the Pension Credit calculator
To utilise the calculator on GOV. UK, you’ll need details of:
- Your earnings, benefits and pensions.
- Your savings and investments.
If you have a partner, you’ll need their details as well. You will be presented with a series of multiple-choice questions.
Once you’ve answered these questions, a summary screen will display your responses, allowing you to go back and modify any answers before submitting. The Pension Credit calculator will then show how much benefit you could receive each week.
All you need 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 provide using the calculator tool to help you complete the application form quicker without having to look out for the same details again.
Who cannot use the Pension Credit calculator?
The calculator cannot be used 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.
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.
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, and your bank account details if you’re applying by phone or by post. If you’re backdating your claim, you’ll need details of your income, savings and investments on the date you want your claim to start.
You can apply online if you have already claimed your state pension and there are no children or young people included in your claim. To check your entitlement, call the Pension Credit helpline on 0800 99 1234 or use the GOV.
