The Department for Work and Pensions (DWP) recently announced plans to continue encouraging more than 11 million older people to check if they qualify for an annual income top-up worth over £3,500. This is part of an ongoing awareness campaign to encourage more pensioners on a low income to check if they are entitled to additional financial help through Pension Credit.
In addition to the printed campaign which began in April 2022, DWP has also introduced a new interactive Pension Credit claim form which can be completed online, downloaded and posted to the Pension Service. This could be useful for those who cannot claim the benefit online or over the phone as progress on the 24-page application form can be saved and completed at a later time - find out more about this here.
A successful claim for Pension Credit acts as a ‘gateway’ to other financial support including Council Tax reductions, help with housing and mortgage payments, discounted NHS treatments and free TV Licences for the over-75s. Even if the financial award isn't great, just one penny is enough to unlock other support, including cost of living payments.
Earlier this week, DWP Pensions Minister Laura Trott MP explained: "A key message of DWP’s Pension Credit awareness campaign, which has been running since last April is that claiming and receiving even a small amount of Pension Credit can act as a gateway to a wide range of other help including access to the Warm Home Discount Scheme."
The latest figures released by the DWP suggest that £1.7 billion is being left unclaimed by around 850,000 State Pensioners across Great Britain despite enhanced social media posts by DWP encouraging friends and family members to help older loved ones check if they are entitled to the support.
Below is an overview of the benefit along with additional discounts and reductions a successful claim may be able to unlock.
£900 Cost of Living Payment
A new claim for Pension Credit which later turns out to be successful will also qualify for the £900 means-tested cost of living payment and the £300 pensioner cost of living payment in 2023/24.
Winter Fuel Payment
Pension Credit claimants may also be eligible for the annual Winter Fuel Payment next year which has already seen 11.6 million households across the UK receive up to £600 help with the additional cost of heating bills, including 973,604 living in Scotland.
In November, Chancellor Jeremy Hunt announced that Pension Credit will increase by 10.1 per cent from April. This is on top of a 10.1 per cent increase to State Pension, means-tested and disability benefits delivered by DWP.
Pension Credit weekly payment rates 2023/24
- Single: £201.05, up £18.45 from £182.60
- Couple: £306.85, up £28.15 from £278.70
People can check their eligibility for Pension Credit using the online calculator or by calling the Pension Credit helpline on 0800 99 1234.
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 news, join our Money Saving Scotland Facebook page here, or subscribe to our newsletter which goes out four times each week - sign up here.
READ NEXT
People of State Pension age with angina may be due up to £369 from DWP
Martin Lewis urges older people not to miss out on new £900 cost of living payment
Proposed new State Pension age changes could mean you need to work longer
Older people on State Pension could be due up to £1,506 each month from April
