DWP warns pensioners could be missing out on £3,300 a…

DWP warns pensioners could be missing out on £3,300 a year

An extra £3,300 a year could be in pensioners' bank accounts, according to the Department of Work and Pensions (DWP). The government department fears that those most vulnerable could be missing out on additional help.

Those eligible could claim pension credit, which in turn means they could be in line for further support to assist with living costs such as housing costs, council tax or heating bills. The help adds up to, on average, £3,300 a year.

Being eligible for pension credit comes down to your circumstances. Your income and savings will be calculated to determine to what you are entitled.

So, for a start, what is pension credit. Pension credit is extra money that is available to pensioners to bring the weekly income they receive up to a minimum amount. If you’re over State Pension age and on a low income, you could get help with your living costs. If you think you might be eligible it is well worth using the government's pension credit calculator to work out what you could get especially as claiming the extra money opens the door to a series of other help including housing benefit, support with mortgage interest... even a discount on the Royal Mail redirection service if you're moving house.

Here's a basic guide based on government information.

Pension Credit explained

Pension Credit is separate from your State Pension. You can get Pension Credit even if you have other income, savings or own your own home. When you apply your income is calculated and if you have a partner, your income is calculated together.

How much you might get

This depends upon how much your receiving in income. Pension Credit tops up:

your weekly income to £182.60 if you’re single
your joint weekly income to £278.70 if you have a partner

If your income is higher, you might still be eligible for Pension Credit if you have a disability, you care for someone, you have savings or you have housing costs.

Income is counted as:

State Pension
other pensions
earnings from employment and self-employment
most social security benefits, for example Carer’s Allowance

Be aware that if you’re entitled to a personal or workplace pension and you have not claimed it yet, the amount you’d expect to get still counts as income.

What does not count as income include benefits such as:

Adult Disability Payment
Attendance Allowance
Christmas Bonus
Child Benefit
Disability Living Allowance
Personal Independence Payment
social fund payments like Winter Fuel Allowance
Housing Benefit
Council Tax Reduction

What about savings?

If you have £10,000 or less in savings and investments this will not affect your Pension Credit. If you have more than £10,000, every £500 over £10,000 counts as £1 income a week. For example, if you have £11,000 in savings, this counts as £2 income a week.

Other help you might get you receive Pension Credit

If you get 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
a Council Tax discount
a free TV licence if you’re aged 75 or over
help with NHS dental treatment, glasses and transport costs for hospital appointments, if you get a certain type of Pension Credit
help with your heating costs through the Warm Home Discount Scheme
a discount on the Royal Mail redirection service if you’re moving house

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