The Department for Work and Pensions (DWP) recently announced that following the success of its summer campaign to increase take-up of a benefit designed to boost the income of older people on a low income, the Pension Service has received an “unprecedented” number of new claims for Pension Credit.
The DWP also said that additional resources are being deployed to ensure claims for the ‘passport’ benefit - worth up to £3,300 a year on average in financial support and discounts - are being dealt with as quickly as possible. It said: “Once an application has been received, claim decisions will be sent out in the post within six weeks. People can be reassured, successful claims will be backdated to the date the application was made, it is important those who are entitled do not miss out.”
The means-tested benefit is wroth 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. If you are a carer or disabled, you may qualify for higher payments.
Pension Credit is definitely something worth looking into either for yourself, a family member or a friend as older people who start a claim for Pension Credit now - which is later successful - may also be eligible for the second part of the £650 Cost of Living Payment, worth £324, due to be paid to more than 8 million households between November 8th and 23rd.
This is because Pension Credit is a retrospective benefit which can be claimed up to three months in arrears, taking it to within the qualifying period between August 26 - September 25. You can read more about this here.
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
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.
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 news, join our Money Saving Scotland Facebook page here, or subscribe to our newsletter which goes out four times each week - sign up here.
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