The Department for Work and Pensions (DWP) will start to make the first of two payments which make up the £650 means-tested Cost of Living Payment financial support package from this week. Most eligible claimants who are in receipt of certain benefits will be paid £326 between July 14 and 31.
One of the seven qualifying benefits, Pension Credit, is a ‘passport’ benefit aimed at supporting people over State Pension age on a low income by providing up to £3,300 each year, on average, in financial support. It also acts as a ‘gateway’ to Council Tax, housing and NHS discounts along with free TV Licences for the over-75s.
The qualifying period for the first part of the £650 cost of living payment was in May, however, Pension Credit is a retrospective benefit which means it can be backdated three months at the point of claim. The DWP has now confirmed that older people who apply for Pension Credit before August 24, 2022 - whose claim is later successful - will be eligible for the full £650 payment.
People on Pension Credit may also qualify for the £300 pensioner cost of living payment which will be added to Winter Fuel Payments in November/December and the £150 disability cost of living payment, due in September.
Re-appointed Pensions Minister, Guy Opperman MP, confirmed the date in the House of Commons on Monday in response to a question from Martyn Day.
The SNP MP asked: “Pension Credit figures show that an estimated £1.7 billion goes unclaimed. Not only are 850,000 families missing out on this essential support, but they are also ineligible for the £650 cost of living payment.
“Will the Minister consider extending the cut-off date for entitlement to that payment to next March? Will the Department finally look at a proper benefits take-up strategy such as the one we have in Scotland?”
Mr Opperman responded: “By reason of the Pension Credit awareness campaign from April and in particular the Pension Credit day of action on 15 June, the numbers for Pension Credit have massively increased - by well over 275% for that period.
“He will also be aware that there is a huge effort being made to ensure that Pension Credit take-up increases. I ask all hon. Members please to encourage their communities to apply.
“Finally, he will also be aware that Pension Credit is retrospective, so people have until 24 August to apply and still be entitled to the £650 cost of living payment that this Government will be making from Thursday.”
Below is everything you need to know about the benefit to make a claim for yourself, a family member or friend. We also have details on the handy online Pension Credit tool which can quickly indicate if your claim may be successful and how much you might get.
What is Pension Credit?
Pension Credit gives people extra money to help with living costs if they are over State Pension age and on a low income.
Some older people think because they have savings or own their home they would not be eligible for any Pension Credit, but thousands could be missing out on the extra money and discounts it provides every month.
More than 1.4 million people over State Pension age across the UK are currently receiving the benefit, including some 129,671 living in Scotland, and accessing additional financial help with Council Tax, Housing Benefit, hearing bills and a free TV Licence for the over 75s.
Other help if you get Pension Credit
If you qualify for Pension Credit you can also get 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
- A discount on the Royal Mail redirection service if you are moving house
One of the quickest ways to find out if you are eligible, and how much extra you could potentially be paid every week, is to use the Pension Credit calculator on the GOV.UK website.
Mixed aged older couples and Pension Credit
In May 2019, the law changed so that a ‘mixed age couple’ - a couple where one partner is of State Pension age and the other is under it - are considered to be a ‘working age’ couple when checking entitlement to means-tested benefits.
This means they cannot claim Pension Credit or pension age Housing Benefit until they are both State Pension age.
Before 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 use the Pension Credit calculator
To use the calculator, you will need details of:
earnings, benefits and pensions
savings and investments
You’ll need the same details for your partner if you have one.
Who cannot use the Pension Credit calculator?
You cannot use the calculator 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
How 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 can get up to three months of Pension Credit in your first payment if you were eligible during that time.
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
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.
Apply online
You can use the online service if:
you have already claimed your State Pension
there are no children or young people included in your claim
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.
To keep up to date with the most-read money stories, subscribe to our newsletter which goes out three times each week - sign up here.
