Department for Work and Pensions (DWP) Minister, Laura Trott MP, is calling on older people across the country to check if they are entitled to Pension Credit as soon as possible to ensure they stand the best chance of qualifying for an extra £324 cost of living payment.
Checking eligibility and applying by December 18 - just over a week away - will mean people of State Pension age could receive the £324 income boost thanks to Pension Credit backdating rules. This is because successful Pension Credit claims can be backdated for up to three months - as long as the applicant was also eligible to receive it during that time.
The average Pension Credit award is worth over £3,500 a year and even a small Pension Credit award can provide access to a wide range of other benefits - such as help with housing costs, Council Tax or heating bills - in addition to the extra cost of living payments.
Minister for Pensions Laura Trott said: “The run up to Christmas is always a busy time, but one thing to make sure that’s on your list over the coming days is to find out whether you or your loved ones could be eligible for Pension Credit.
“Pension Credit can make a real difference and I am determined to make sure this support, worth an average of £3,500 per year, is reaching everyone who needs it.”
Pension Credit is designed to help people over State Pension age and on a low income with daily living costs, though you do not need to be in receipt of State Pension to get it.
It tops up a person’s income to a minimum of £182.60 per week for single pensioners and to £278.70 for couples.
Currently, more than 125,000 pensioners in Scotland receive Pension Credit. However, many are still not claiming this extra financial help.
UK Government Minister for Scotland John Lamont said: “More than 125,000 pensioners in Scotland already benefit from Pension Credit - and will be able to access the extra £324 Cost of Living payment as a result. However, we know that more people in Scotland may be eligible for this additional UK Government support, but are not currently claiming it.
“If you think you, or anyone in your family may be eligible I would urge you to check now - it’s quick and easy to do so and might mean you can access even more help.”
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 calculator which can quickly indicate if your claim may be successful and how much you might get.
What is Pension Credit?
Pension Credit currently gives 1.4 million people across the UK 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 the DWP said hundreds of thousands could be missing out on the extra money and discounts it provides every month.
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
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 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.
You will be presented by a series of questions with multiple choice answer options.
This includes:
- Your date of birth
- Your residential status
- Where in the UK you live
- Whether you are registered blind
- Which benefits you currently receive
- How much you receive each week for any benefits you get
- Whether someone is paid Carer’s Allowance to look after you
- How much you get each week from pensions - State Pension, private and work pensions
- Any employment earnings
- Any savings, investments or bonds you have
Once you have answered these questions, a summary screen shows your responses, allowing you to go back and change any answers before submitting.
The Pension Credit calculator then displays how much benefit you could receive each week.
All you have to do then 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 give using the calculator tool to help you complete the application form quicker without having to look out the same details again.
Try the Pension Credit Calculator for yourself or family member to make sure you’re receiving all the financial support you are entitled to claim.
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 latest State Pension benefits, join in the conversation on our Money Saving Scotland Facebook page here, or subscribe to our newsletter which goes out three times each week - sign up here.
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