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Martin Lewis has shared several lesser-known loopholes that could mean retired people are eligible for pension credit and in turn the Winter Fuel Payment of up to £300 - even if their income is above the threshold.
Writing in his weekly email, the money expert highlights a few pension credit eligibility technicalities that prevent many pensioners from realising they could be eligible.
Under the current rules, you must be above the state pension age (66+) and on a low income to claim pension credit. It will top up your weekly income to either:
- £218.15 if you’re single
- £332.95 if you have a partner (shared jointly)
But Mr Lewis highlights that there are certain cases where a person can qualify with a higher income. The first of these is if you have a disability or illness, which may raise the threshold at which you become eligible.
For those claiming attendance allowance (AA), which helps disabled pensioners with extra costs, the income threshold to qualify for pension credit rises by £82 a week.
This doesn’t include the money received from AA, which will be £72.65 or £108.55 a week depending on need, so it’s highly recommended anyone who believes they could qualify checks with the DWP.
Mr Lewis shared a grateful message from reader Adele, who wrote: “Thank you for bringing AA to my attention. I’ve successfully claimed for my dad who has chronic arthritis - so he now gets an extra £72/wk.
“Now he has AA, he’s also eligible for a further £35/wk Pension Credit, and his Housing Benefit has been increased by £40/wk. So a total extra £150/wk - a huge help, and he will still be eligible for Winter Fuel Allowance.”
Next, the money guru advises pensioners not to count themselves out just because they have savings or investments. Anything worth up to £10,000 is not counted in the assessment, with every £500 over this limit being counted as £1 a week.
Finally, high housing costs will be taken into account when a person applies for pension credit. For instance, if a pensioner has a high ground rent or service charge for assisted living, this will be considered by the DWP.
It’s currently estimated that around 800,000 eligible pensioners do not claim pension credit, usually due to complexity, stigma or lack of awareness. Described as a ‘passport’ benefit, it gives access to several means of support beyond just the winter fuel payment.
It can unlock housing benefit, support with mortgages, a free TV licence and even help with NHS dental appointments. This can add up to thousands of pounds in additional support.
Pensioners who believe they may be eligible for pension credit are advised to call the DWP on 0800 99 1234 or apply online.
