Given the financial pressures many are facing, there may be additional sources of income that could provide support. For pensioners in the UK, some may be overlooking extra income available through Pension Credit, which can reportedly be backdated by up to three months by the Department for Work and Pensions.
For those who may be unaware of what Pension Credit is, it is a means-tested benefit that can provide about £4,300 in extra support for the 2026-27 financial year. Per the DWP, there are around 760,000 pensioners entitled to a State Pension top-up but have not claimed it, according to the Daily Record.
Those who apply for Pension Credit could receive up to three months of backdated payments, as long as they meet the eligibility criteria for that period. If successful, claimants can receive a lump sum in addition to their regular weekly payments.
As an example, single pensioners with an income below £238.00 may be eligible for Pension Credit. In the case of married pensioners, couples with a combined weekly income of less than £363.25 per week may also be eligible.
Misconceptions About Pension Credit
For some older people, this may be an opportunity that has been overlooked or remains largely unknown. Some believe that owning a home or having savings automatically makes them ineligible for the benefit. However, this could help ease financial pressure, particularly in terms of day-to-day costs.
The good news is that there is still time to apply. The DWP states that it continues to process new claims for Pension Credit, a process that can take around 50 working days, or 10 weeks. Given the rising cost of living, the additional financial support could make a significant difference.
The best way for those who want to check eligibility is to do so online. This can be done using the Pension Credit calculator available here.
As stated earlier, the income bracket used as an example is a guide to determine whether income meets the eligibility criteria. For those earning more, there may still be a chance of eligibility. Circumstances such as disability, caring responsibilities, savings and housing costs are also taken into account.
The following are considered as income:
- State Pension
- Other Pensions
- Earnings from Employment/ Self-Employment
- Social Security Benefits
On the other hand, the following are not counted as income:
- Adult Disability Payment
- Attendance Allowance
- DWP Christmas Bonus
- Child Benefit
- Disability Living Allowance
- Pension Age Disability Payment
- Personal Independence Payment
- Social Fund payments
- Housing Benefit
- Council Tax Reduction
Financial Guru Urges Pensioners to Verify Eligibility
According to financial expert Martin Lewis, there are nearly one million retired Brits not claiming the support they are entitled to. Lewis has urged pensioners to take the necessary steps to verify their eligibility, as they could be missing out on up to £3,000 annually.
In an effort to provide pensioners with a clearer overview, Lewis has offered advice on his MoneySavingExpert website. His guidance could be particularly valuable for pensioners surviving on limited incomes.
Some readers have reported that claiming Pension Credit has helped, with some benefiting and building up savings. The process involves checking eligibility, completing the necessary paperwork and waiting for the application to be processed, which typically takes around 10 weeks.
