Martin Lewis is urging 800,000 people aged 66 or over to check if they are eligible for a “vital” annual income top-up worth around £3,500, on average. Pension Credit is a benefit delivered by the Department for Work and Pensions (DWP) that is designed to help low-income pensioner households access extra financial support.
In a special pensions edition of The Martin Lewis Money Show Live, the consumer champion urged older viewers who are not on the full State Pension to check if they qualify for the ‘gateway’ benefit which can also provide help with housing costs, heating bills, Council Tax reductions, cost of living payments and free TV licences for the over-75s.
The founder of MoneySavingExpert.com also urged people to share his simple rule of thumb with any friends or family members of State Pension age who may be eligible for the benefit.
Martin said: “If you know someone who is of State Pension age and they have a low income the most important message we need to spread is about Pension Credit.
“Pension Credit is a top-up to your pension income and my rule of thumb is that if you are single with income of under £200 per week or a couple with income of under £300 per week, check it out.”
But he warned: “I’m not saying you’ll get it, I’m saying you could get it and it’s worth checking out.”
He said the quickest and easiest way to check eligibility is to use the online Pension Credit calculator on GOV.UK here or by calling the Pension Credit helpline on 0800 99 1234.
Martin said: “There are 800,000 low income pensioners not getting this vital top-up that can be worth £3,500 per year. This is big money - and is a gateway benefit.
“If you get Pension Credit, it can enable you to get so many other things like cheaper Council Tax, a free TV licence for the over-75s, lower water bills, the energy cost of living payments - there’s so much that relies on Pension Credit that 800,000 people on lower incomes are missing out on is an absolute tragedy.”
Former pensions minister Sir Steve Webb, now at pensions specialists Lane, Clark and Peacock (LCP), also added that the 10.1% annual benefits uprating due in April will not affect Pension Credit eligibility after one viewer asked whether the increase to her State Pension will affect her Pension Credit entitlement.
More than 12.6 million people across Great Britain are claiming their State Pension. From April, those on the full New State Pension will see payments increase from £185.15 per week to up to £203.85 and those on the Basic State Pension will see weekly payments rise from £141.85 per week to up to £156.20.
Pension Credit is means-tested which means income and savings can impact eligibility, however, Sir Steve assured Pam that even though her State Pension payments will go up in April, her Pension Credit allowance will too.
He also confirmed to Martin that if you qualify for Pension Credit now, before the uprating, you will most-likely qualify for it in April after the uprating.
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.
You can catch up on The Martin Lewis Money Show Live on the STV Player.
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, or subscribe to our newsletter which goes out daily, Monday to Friday - sign up here.
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