Martin Lewis is urging nearly one million people aged 66 or over to check if they are eligible for an annual income boost worth around £3,300 on average. Pension Credit is a benefit delivered by the Department for Work and Pensions (DWP) designed to help low-income pensioner households.
Writing in the latest edition of the MoneySavingExpert.com (MSE) newsletter, the financial journalist said it was a “national tragedy” that so many people of State Pension age, who have been paying National Insurance contributions for years, are missing out on a “critical boost to their income”.
The consumer champion also shared his rule of thumb for instantly checking whether you or someone you know, who is over 66, may be eligible for the additional weekly payment - and it will take less than 10 seconds to do.
Martin wrote: “It is a national tragedy that getting on for a million pensioners, many of whom have been paying into the system for years, are missing out on a critical boost to their income. It's called Pension Credit, and this year it also means you get up to £650 extra to help with energy bills.
“So as we're slap-bang in the middle of a cost of living crisis, it's crucial we spread the word as quickly as possible.”
Pension credit 10-second need-to-knows
An infographic on the MSE.com website explains that you may be eligible for Pension Credit if:
- you are over 66 and single with a total weekly income of under £200
- you are in a couple and you are both aged 66 or over, with a total weekly income of under £300
However, Martin warned that even if you answer yes to either of these questions, you may not qualify for the benefit.
He said: “I'm NOT saying everyone will be entitled to Pension Credit; there's huge variance depending on if you've savings, disabilities, and other factors.
“Yet at this income it's definitely worth spending five minutes to check. You CAN get it if you're a homeowner, claim other benefits or live with a grown-up family. The worst that can happen is they say no.”
He also clarified how total income is calculated as DWP takes into account:
- Income from work
- Pension
- State Pension
- Some benefits
- Savings or investments over £10,000
The latest DWP figures indicate £1.7 billion is being left unclaimed by around 850,000 older people across the UK who are missing out on this vital ‘passport’ benefit which unlocks a whole host of other discounts, including free TV licences for the over-75s and Council Tax Reductions.
Pension Credit helps top-up a person’s income to a minimum of £182.60 per week for single pensioners and £278.70 for couples.
However, during his Autumn Statement, Chancellor Jeremy Hunt announced that Pension Credit will increase by 10.1% from April. This is on top of a 10.1% increase to State Pension, means-tested and disability benefits delivered by DWP.
Pension Credit weekly payment rates 2023/24
- Single: £201.05, up £18.45 from £182.60
- Couple: £306.85, up £28.15 from £278.70
People can check their eligibility for Pension Credit using the online calculator here or call 0800 99 1234.
You can read Martin’s full guide on MSE.com here.
Pension Credit and £324 cost of living payment
The DWP is also reminding eligible pensioners that making a new claim for Pension Credit before December 18, 2022 , which later turns out to be successful, will result in a backdated cost of living payment worth £324.
This is because a claim for Pension Credit can be backdated for up to three months taking it to the final qualifying date of September 25.
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, or subscribe to our newsletter which goes out four times each week - sign up here.
READ NEXT
- Older people making new claim for Pension Credit could get decision before Christmas
- DWP shares new plans to fix 237,000 State Pension underpayments
- Five ways to boost State Pension payments
Older people may be due over £1,100 to help with energy bills this winter
DWP benefits older people can no longer claim when they reach State Pension age
