Former Strictly Come Dancing Judge Len Goodman and Minister for Pensions Guy Opperman have joined forces in the ballroom for a video to help promote a benefit which could give an estimated 850,000 people of State Pension age an annual income boost of up to £3,300. Along with a financial boost, successful claimants could also access reductions and discounts on housing and Council Tax.
Wednesday, June 15 was the Department for Work and Pensions’ (DWP) second annual Pension Credit ‘Day of Action’, with the aim of encouraging people over 66 to check their eligibility for the gateway benefit and make a claim. The UK-wide campaign encouraged everyone to pas the information on to someone who could be eligible.
Consumer champion Martin Lewis, well-known charities, banks and pension providers, such as Age UK, Virgin Money and Legal & General also got behind the awareness campaign, taking to social media to help spread the message. Martin also discussed the benefit on his regular slot on ITV's, This Morning.
The founder of MoneySavingExpert.com explained: “It's not often I agree to team up with the [UK] Government on a campaign, but I was happy to offer assistance for this one, as it's a national tragedy that getting on for a million pensioners, many of whom have been paying into the system for years, are missing out on a major income boost.”
Martin even has a quick check everyone can do to see if they should contact the DWP and make a claim.
He said: “My simple rule of thumb is if you (or someone you know) are aged 66 or older, and have total income of under roughly £200 a week, get online or call the Pension Credit claim line to see if you’re due a payment that can be as much as £3,300 a year.
“I’m not saying everyone will get it, but many will, and it only takes a few minutes to find out. So don’t stall, just call.”
Martin added: “Not only is this serious money, it’s also often a gateway entitlement that means you’re due a range of other support, such as Council Tax reductions, the £650 extra energy funding help, Warm Home Discount, housing benefit, dental and optical treatments and, for the over-75s, a free TV licence.”
The latest figures from the DWP show that more than 1.4 million older people are receiving Pension Credit, including some 129,671 living in Scotland, however an estimated £1.7 billion is being left unclaimed.
And the DWP is reminding everyone that it’s not too late to get involved and help spread the word about the importance of Pension Credit - which can also open the door to other support including the £650 cost of living payment.
The first instalment of the £650 means-tested Cost of Living Payment will be made from July 14, however, the second payment will be in the autumn and the qualifying date has still to be confirmed.
This means starting an application for Pension Credit now, which later results in an award for the benefit could mean you are also eligible for the £324 later in the year.
Below is everything you need to know about Pension Credit, whether it's for you, a family member or a friend.
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 latest pensions news and benefits, join our Money Saving Scotland Facebook group here, follow Record Money on Twitter here, or subscribe to our twice weekly newsletter here.
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