Last year, the Department for Work and Pensions (DWP) confirmed that “additional resources” have been brought in to help process new claims for Pension Credit which had reached “an all time high” following the success of a campaign to drive take-up of the benefit designed for people of State Pension age on a low income.
New claims for the ‘passport’ benefit, which is worth up to £3,500 a year in financial support and discounts, are being dealt with as quickly as possible. DWP has now said that following a surge of applications last month - some 7,200 claims in the first full week of December - claim waiting times are set to get back to normal.
This should mean new claims are processed within the DWP target time of six weeks. However, it’s worth pointing out that successful claims are backdated by up to three months from the point of application and paid accordingly, to ensure those who are entitled do not miss out.
The update came during a recent DWP oral questions session in Parliament.
Labour MP Fleur Anderson asked: “According to research from the Law Centres Network’s recent pension credit report, nearly 60 per cent of respondents said that they waited between three and six months for claims to be processed.
“A constituent of mine has been waiting six months and losing out during that time. Will the Minister address the Pension Service’s processing failure and take steps to bring the average time it takes to deal with claims for pension credit down to the target time of six weeks?”
In response, Pensions Minister Laura Trott MP, said: “I am concerned to hear of that individual case and if the Hon. Lady would like to write to me, I will look into it.
“More broadly, we know that there have been delays; that is partly because the number of claims doubled in 2022.
“I am pleased to say that in February we expect claim waiting times to get back to normal, but I will, of course, report back to the House on how we are doing on that.”
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.
People can check their eligibility for Pension Credit using the online calculator or by calling the Pension Credit helpline on 0800 99 1234.
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.
During the Autumn Statement, Chancellor Jeremy Hunt announced that Pension Credit will increase by 10.1 per cent from April.
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
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.
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