Andy Burnham has inherited the Pension Credit system (Image: Getty)
It’s one of the best ways that state pensioners can boost their weekly income and the old-age benefit is set to continue under new Prime Minister Andy Burnham.
Pension Credit is a DWP benefit that is available to state pensioners but will only pay out extra money per week to those who are below a certain weekly income.
The benefit is aimed at helping those on low incomes in old age top up their weekly income, especially if they don’t have a private pension, or their state pension payments are lower than they could be because of an incomplete National Insurance record.
On average, Pension Credit claimants are able to get around £4,300 a year.
In order to be eligible, single pensioners must have an income of less than about £238 per week, including savings income, the state pension and work or other income sources, and couples must have less than £363 per week.
Martin Lewis’ MSE explains: “If you’re retired and have income less than £238 a week as an individual, or £363 a week as a couple, you may be due Pension Credit worth £4,300 a year, on average. Plus, it entitles you to a whole raft of other benefits. Yet, around £2.5 billion of pension credit is unclaimed by over 910,000 eligible pensioners.”
Money expert Martin Lewis has urged pensioners to go and check online if they can get the money, as it costs nothing to find out but it could be worth thousands.
Speaking in 2024, Martin said: “Let’s make this really simple: if you’re a low income pensioner and you don’t get pension credit, just go online and do the calculator. Or if online scares you, just call up the pension credit hotline and just talk to someone.
“You will not be told off for asking if you’re due pension credit. If you’re not due pension credit, they’ll just tell you you’re not due it.”
New PM Andy Burnham inherits the current Pension Credit system from his predecessors Sir Keir Starmer and now-ex Chancellor Rachel Reeves, who in turn inherited it from previous governments.
Changes to Pension Credit are unlikely, but if they are made, would not be announced until the next Budget under new Chancellor John Healey in November and would not be likely to take effect until a future tax year. Given Mr Burnham’s comments indicating that he wants to help households with the cost of living crisis, removing Pension Credit from low income pensioners would be incredibly unlikely.
The government’s current guidance says that state pension, other pensions, earnings from employment and self-employment and most social security benefits, for example Carer’s Allowance, count as income for the purposes of Pension Credit calculations.
Pension Credit is also a ‘gateway benefit’ which can open up access to various other discounts and handouts, including a free TV Licence for over 75s, free dental care, the Warm Home Discount worth £150 a year, and Council Tax reduction as well as Housing Benefit.
You can apply online via gov.uk or call 0800 99 1234
