The Department for Work and Pensions (DWP) has announced that it received an estimated 10,000 new claims for Pension Credit in one week during a nationwide drive encouraging older people to check eligibility for the ‘gateway’ benefit worth more than £3,300 each year.
The Pension Credit Day of Action on June 15, saw some famous faces and charities get behind the campaign including financial guru, Martin Lewis and former Strictly Come Dancing head judge, Len Goodman. DWP told the Work and Pensions Committee that in a typical week they would normally receive around 3,000 new claims, but as a result of the drive “saw a tripling” of applications.
Secretary of State at DWP, Dr Dr Thérèse Coffey MP, said this was down to “trying to appeal to the children and grandchildren of pensioners to encourage them to check” if they were missing out on the gateway benefit.
However, she added: “There were quite a lot of people who did apply who are not actually eligible, but that is okay. It is better for people to check and we want people to try to get access to the benefits if they are.”
But don’t let that put you off making a claim as Peter Schofield, Permanent Secretary at DWP, explained that between 60% and 70% of new claims for Pension Credit are successful.
He said: “The proportion who turned out not to be eligible has gone up, but it is still a good chunk of people who are applying who are eligible.”
A reminder about Pension Credit is sent out every year along with the State Pension uprating letter and while you may not get a huge financial boost, it could open a gateway to other benefits including help with housing costs, Council Tax reductions and free TV Licences for the over-75s.
Ms Coffey explained: “The thing we have particularly strengthened is the getting a few pennies from the UK Government.
“People may not think that is worthwhile but it opens up a gateway. That is what we have been trying to talk about passports too - in effect, other opportunities, such as TV Licences and other elements like that, to make it more of a reason, as opposed to perhaps getting an extra even penny from the state. Many people, I expect, probably would not think that would be worthwhile, but it is worthwhile.”
The latest figures released by the DWP indicate £1.7 billion is being left unclaimed by around 850,000 pensioners across the UK.
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 tool which can quickly indicate if your claim may be successful and how much you might get.
What is Pension Credit?
Pension Credit gives people 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 thousands could be missing out on the extra money and discounts it provides every month.
More than 1.4 million people over State Pension age across the UK are currently receiving the benefit, including some 129,671 living in Scotland, and accessing additional financial help with Council Tax, Housing Benefit, hearing bills and a free TV Licence for the over 75s.
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
One of the quickest ways to find out if you are eligible, and how much extra you could potentially be paid every week, is to use the Pension Credit calculator on the GOV.UK website.
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, 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 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 most-read money stories, subscribe to our newsletter which goes out three times each week - sign up here.
