New research from HUB Financial Solutions suggests that more than 720,000 people over State Pension age checked their eligibility for benefits last year following the UK Government’s delivery of a series of cost of living payments. Millions of low income, vulnerable, disabled and pensioner households received one-off payments to help them combat double-digit inflation, soaring energy bills and rising food and fuel costs.
The 2023/24 cost of living support package is worth £26billion and will provide extra cash support periodically throughout the financial year to millions of households. This includes payments of £900 (paid in three instalments of £301, £300 and £299) for those on means-tested benefits, including Pension Credit, £150 for those claiming disability benefits, including Attendance Allowance and a £300 top-up to the Winter Fuel Payment, which helps pensioner households during the colder months.
The advisory firm’s research found that a third (33%) of over 65s said they had checked their entitlement to benefits in the last year. Of these people, around one in five (19%) said that they had done so because of the government’s means-tested financial help aimed at supporting those on benefits through the cost of living crisis - around 720,000 people.
The financial strain felt by households due to the rising cost of day-to-day living also drove a similar proportion (20%) to check their benefit eligibility. An estimated £1.7billion of available Pension Credit is lost each year due to an estimated 850,000 people not claiming.
Commenting on the findings, Simon Gray, Managing Director of HUB Financial Solutions, said: “The financial pressures over the past year have placed immense stress on household budgets and pensioners can be particularly exposed given that a significant proportion of them rely on the State Pension to provide the greatest part of their retirement income.”
Financial support for people over State Pension age
Pension Credit tops up a person's income to a minimum of £201.05 per week for single pensioners and up to £306.85 for couples - or more if a person has a disability or caring responsibilities.
The Department for Work and Pensions (DWP) launched a Pension Credit awareness campaign in April 2022 and is continuing to promote the income-related benefit throughout 2023. Some 1.4million older people are currently in receipt of the ‘passport’ benefit which in turn is providing additional financial support for 1.6million pensioners and their spouses or partners.
Below is everything you need to know about the benefit to make a claim for yourself, a family member or friend. Successful new claims of at east one penny will be eligible for the next means-tested cost of living payment of £300, which is due in the autumn.
Who should check for Pension Credit?
If you are over 65 and reached their State Pension age before April 6, 2016, you could still qualify for Pension Credit if your weekly income is less than:
- £240.90 if they are single
- £351.45 if they are a couple
People can check their eligibility for Pension Credit using the online calculator here 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.
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.
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