To help even more people of State Pension age access support worth around £3,300 on average each year, the Department for Work and Pensions (DWP) has 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.
Last month, the DWP confirmed that additional resources have been brought in to help process new claims for Pension Credit which it said are at “an all time high” following the success of a summer campaign to drive take-up of the benefit designed for people of State Pension age on a low income.
It also confirmed that new claims for Pension Credit made before December 19, which later turn out to be successful, will qualify for the second cost of living payment of £324.
The new interactive claim form could also help more people complete the application process for an older family member or someone who does not have access to the internet, something the DWP highlighted in a recent post on social media.
The DWP’s official Twitter account posted: “Could someone in your family be eligible for and missing out on #PensionCredit?
“Talk to them about checking their eligibility online today or call 0800 99 1234.”
A successful claim for Pension Credit acts as a ‘passport’ 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.
The latest figures released by the DWP indicate that £1.7 billion is being left unclaimed by around 850,000 pensioners across the UK. It also revealed that new claims are taking around six weeks to process from submitted application to decision letter being sent out.
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, here.
Below is everything you need to know about Pension Credit, whether it's for you or someone you know.
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, you will need details of:
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earnings, benefits and pensions
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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:
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are deferring your State Pension
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own more than one property
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are self employed
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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:
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your National Insurance number
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information about your income, savings and investments
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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:
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you have already claimed your State Pension
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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 three times each week - sign up here.
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