The Department for Work and Pensions (DWP) has revealed that as many as one million older people across the UK may be eligible to receive Pension Credit but are not claiming it.
Pension Credit is a benefit for people over State Pension age that is intended to top up the income of those if struggling to make ends meet.
Even if you already receive a pension or have another source of regular income, you may be entitled to Pension Credit.
READ MORE — People claiming certain DWP benefits or Tax Credits may be eligible for £1,200 bonus
As reported by the Daily Record, many people falsely assume that they are not eligible for the benefit since they have savings or own property — but are in fact missing out on monthly payments they are due.
Secretary of State at the Department for Work and Pensions Thérèse Coffey explained in 2021 that even those who would only receive as little as 2p a week through Pension Credit would still benefit from applying as it would open the door to additional benefits and discounts.
This is due to the fact that those who claim Pension Credit may also be eligible for extra financial assistance with Council Tax or Housing Benefit — and will also get a free TV licence if they are over 75, saving £159 a year.
Coffey said: “About three-quarters of people whom we estimate to be eligible for the minimum income guarantee do apply. On the savings side, only about half of people, we estimate, apply.
“I expect a lot of that might be driven not by complexity but, when you go through some of the calculation, you might be getting pennies back from the savings credit element.”
She added: “We will continue to highlight the other benefits that could accrue and, even if you are getting, frankly, two pence a week from the [UK] Government, what you could be entitled to as well.
“We will continue to advertise that, but we have done quite a substantial amount of advertising in the past year. We cannot force people to apply for this. There are plenty of indicators.”
Additional benefits of claiming Pension Credit
- Free TV licence for over-75s : worth £159 a year
- Council Tax Reduction: potentially worth £1,000 to £2,000 a year
- Warm Homes Discount: worth £140 a year
- Housing Benefit: potentially worth £1,000s a year
- Cold weather payments: potentially worth £25 a week in winter
- Free home insulation and boiler grants: worth £1,000s for some
- Free dental treatment: worth £100s a year for some
- Voucher for glasses/contact lenses: worth £39 to £215 depending on your prescription
In an effort to encourage those who are eligible for Pension Credit to make a claim, the DWP have released two short videos that summarise the benefit.
The DWP also introduced a new Pension Credit Toolkit — including a quick guide to the benefit, information about payments, and an online Pension Credit calculator.
The UK Government department's goal is for health visitors, home helps, day care centre staff, welfare advisers, GP’s and staff at the surgery, the local pharmacist who prepares their prescriptions, people at the Post Office where they collect their pension, local councils or friends and family to help them check if they could be eligible for Pension Credit.
To help discern whether people are eligible for Pension Credit, the DWP states that there are four primary questions to consider:
- How old are they?
- If they have a partner, how old is their partner?
- What is their weekly income? Is it less than £173.75 if they are single or £265.20 if they are a couple?
- Do they have any savings? Have they got less than £10,000?
The DWP states: “People who have more income or savings than this may still qualify for Pension Credit, but these questions are a good basic indication of who is likely to qualify.”
The guidance adds that those older than 65 and who reached State Pension age before April 6, 2016 could still be eligible for Pension Credit if their weekly income is less than:
- £208.68 if they are single
- £304.25 if they are a couple
People may have applied for Pension Credit in the past and been told, at the time, they were not eligible, however, a change in their circumstances could now give a different outcome.
Use the Pension Credit calculator here or phone the Pension Credit helpline on 0800 99 1234 to find out how much you could get.
What is Pension Credit?
Pension Credit is a benefit intended to help older people in the UK who are over the State Pension age.
Those who claim the benefit will receive a weekly top-up to the income — it can also be paid fortnightly or monthly depending on preference.
Single pensioners — including widows and widowers — and couples are all eligible.
To use the calculator, you’ll 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.
