Brits over state pension age have been missing out on hundreds of pounds, according to a report. More low income older people could be in line for the boost, which in turn opens the door to additional financial assistance.
According to the Department for Work and Pensions (DWP), following a summer 2022 campaign to increase take-up of Pension Credit - a benefit designed to boost the cash directed at low income older people - the Pension Service has received an “unprecedented” number of new claims for the financial top-up. In fact, the latest figures from DWP show that during the week beginning Monday, December 12, 2022, it received more than 7,200 claims for Pension Credit - an increase of 177 percent on the same period in 2021.
Pension Credit opens the door to a number of further benefits - it is sometimes referred to as a 'passport' or 'gateway' benefit because of this. A report published by Nottinghamshire Live sister publication, Daily Record, states that while the means-tested benefit is worth up to £182.60 each week for people of State Pension age living on their own and up to £278.70 if they are part of a couple, further payment could be due if you are a carer or are disabled, and there are, on average, additional benefits worth up to £3,500 a year in the form of additional support and discounts.
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The DWP said additional resources are being deployed to ensure claims for the ‘passport’ benefit are being dealt with as quickly as possible.
So, what is Pension Credit and how do you know if you are eligible to receive it? Here's what you need to know and where to go next.
What exactly is Pension Credit?
Essentially, Pension Credit gives extra money to those over State Pension age, who are on a low income, to help with living costs. It can also help with housing costs such as ground rent or service charges. The benefit currently helps around 1.4 million people across the UK. Some older people think because they have savings or own their home they would not be eligible to claim, however, the DWP said hundreds of thousands could be missing out on the extra money and discounts it provides every month.
Pension Credit weekly payment rates 2023/24
How much Pension Credit is worth to you will depend upon your circumstances and whether you are single or in a couple. The current rates are listed below. Alongside this figure are the new rates in place from April as a result of the Chancellor Jeremy Hunt's announcement in the Autumn Statement, which said Pension Credit will increase by 10.1 percent from April 2023.
- Single: £201.05, up £18.45 from £182.60
- Couple: £306.85, up £28.15 from £278.70
If you think you might be eligible to claim, check the government website's Pension Credit calculator or call the Pension Credit helpline on 0800 99 1234.
Pension Credit as a 'passport' benefit
If you qualify for Pension Credit then this may open the door to further help. This type of benefit has, in the past, been referred to as a 'passport' or 'gateway' benefit. 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
Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, said: “Pension Credit boosts the income of the poorest pensioners and yet it remains woefully under-claimed. Firstly, many people believe you cannot claim Pension Credit if you own your own home, but this is not the case. Similarly, you can also claim this benefit if you have savings. Having £10,000 or less in savings and investments will not affect your entitlement to Pension Credit.
“Another key reason to claim Pension Credit is that it acts as a valuable gateway to other benefits such as help with NHS costs such as glasses, and if you are over age 75 you can get a free TV licence. Over time the value of these extra benefits can really add up and have a huge impact on your standard of living.”
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 Pension Credit calculator on GOV.UK, 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 Pension Credit calculator on GOV.UK 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 and can claim any time after you reach State Pension age. However, 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.
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