The Department for Work and Pensions (DWP) is continuing its campaign to encourage more older people of State Pension age not to miss out on an average income boost of up to £3,500 a year through a benefit designed specifically for those over 66. Pension Credit is a 'passport' benefit which can unlock extra help with daily living costs including Council Tax, housing costs and heating bills.
DWP has committed to continue promoting the benefit throughout 2023 in an effort to help an estimated 800,000 State Pensioners on a low income who may be missing out on the weekly benefit boost of up to £201.05 each week for single pensioners and up to £306.85 for couples.
In new guidance on GOV.UK designed to help organisations encourage older people to claim Pension Credit, it highlights seven ‘life events’ which could occur that may be an opportunity to claim the benefit - even if they have claimed in the past and the application was unsuccessful.
The Pension Credit guidance for stakeholders explains: “Many pensioners claim Pension Credit when there is a change in their lives. So talking to them when these changes happen is a good idea.”
Life event triggers
The guidance advises that people who have made a previous claim for Pension Credit, but were not eligible at that time could be following a number of different changes in their circumstances.
The guidance adds: “Older pensioners who may have been ineligible (or just thought they were ineligible) in the past can become ‘suddenly eligible’ following important life changes.”
Seven examples of these life events include:
- depletion of savings
- death of a partner
- leaving employment
- increasing ill-health
- becoming a carer
- developing a disability
- taking responsibility for a child
The DWP also recently announced a series of new cost of living payments for 2023/24. This includes £150 for those on disability benefits, £300 for eligible pensioner households which will be added to the 2023/24 Winter Fuel Payments and a £900 means-tested cost of living payment.
Successful new claimants for Pension Credit will also be eligible for the £900 payments which will be made in three lump sums over the next financial yea with the first instalment of £301 due between April 25 and May 17, 2023. In total, eligible pensioners could be due up to £1,350 in additional support through cost of living payments - find out more here.
New claims submitted before May 19, 2023 which later turn out to be successful, will be eligible for the £301 payment in arrears. This is because Pension Credit is a retrospective benefit that can be backdated by up to three months, taking it to within the qualifying period between January 26 and February 25, 2023.
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, follow us on Twitter @Record_Money, or subscribe to our newsletter which goes out Monday to Friday - sign up here.
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