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Pensioners are being urged to check if they qualify for an annual £4,200 benefit boost from the Department for Work and Pensions (DWP).
Pension Credit aims to top up low-income pensioners’ state pension to give them a more reasonable standard of living. However, it’s estimated that as many as 700,000 are not claiming it despite being eligible.
The DWP plans to send letters to 11 million pensioners over the coming weeks to promote the benefit and share details on how to claim it, along with information about the state pension rate increase in April. It’s vital people keep an eye out for this, as they may be unaware they qualify.
Claiming Pension Credit also unlocks additional financial support, which many may not know about.
Labour MP Torsten Bell said: “Receipt of Pension Credit also opens the door to a whole range of other financial support, including help with rent, council tax, fuel bills and a free TV licence for those over 75.
“That’s why the Government is taking significant steps to raise awareness and maximise the take-up of Pension Credit.”
People can use the Government’s calculator to see if they might qualify for the benefit. It takes an average of 16 minutes to check, according to Pensions Minister Emma Reynolds.
Ms Reynolds said: “We know 90% of new customers apply using our simple online form or over the phone. So I would urge everyone to check for their own eligibility or assist family members to apply online or pick up the phone today.
“The online process takes on average 16 minutes so I would encourage people to apply for Pension Credit, worth around £4,200 a year.”
Who is eligible to claim Pension Credit?
To claim Pension Credit, a person must live in England, Scotland or Wales and have reached the state pension age (currently 66 and over). They or their partner must also be receiving housing benefits.
If this applies, the person must then work out their total weekly income. This should include the state pension, other pensions, earnings from employment and self-employment, and most social security benefits, such as Carer’s Allowance.
Not all benefits are counted as income. For example, the following are not counted and shouldn’t be included in the calculation:
- Adult Disability Payment
- Attendance Allowance
- Christmas Bonus
- Child Benefit
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Social fund payments, such as the Winter Fuel Allowance
- Housing Benefit
- Council Tax Reduction.
Individuals are most likely eligible if their total weekly income is roughly under £220. Joint households may be more likely to be eligible if their total weekly income is roughly under £332.
However, if their income is higher, they might still be eligible, so it’s worth checking the Government Pension Credit calculator just in case.
Those with £10,000 or less in savings and investments will see no impact on their Pension Credit entitlement.
For those who have more than £10,000, every £500 over £10,000 counts as £1 income a week. For example, if you have £11,000 in savings, this counts as £2 income a week.
To apply for the benefit, people can reach the helpline by telephone on 0800 99 1234 or by textphone on 0800 169 0133. They can also apply online here.
