The latest figures from the Department for Work and Pensions (DWP) show that there are now some 12.6million people across Great Britain claiming their State Pension and out of that overall total 1.4million are also in receipt of a passport benefit worth around £3,500 on average each year. This means that 1.6million older people, including spouses and partners, are receiving additional financial support through Pension Credit.
Of the overall total number of people drawing their State Pension, 9.7million are receiving Basic State Pension payments of up to £141.85 per week (rising to £156.20 in April), compared to 2.9million getting the New State Pension, which is worth up to £185.15 each week (rising to £203.85 in April).
However, despite those figures, pensions expert Helen Morrissey, head of retirement analysis at Hargreaves Lansdown estimates there are some 1.8million older people receiving less than £100 per week from their State Pension. The DWP launched a new Pension Credit awareness campaign last April, which resulted in a 177 per cent take-up of the benefit by December 2022.
But the charity, Independent Age, is calling on the UK Government to release up to date figures showing how many people are “missing out on the Pension Credit they should be getting”.
Morgan Vine, Head of Policy and Influencing at Independent Age, said: “The Pension Credit figures show a small increase in the number of people receiving the benefit. This is unusual, reversing the usual trend, which likely reflects the difficulties people are facing in the cost-of-living crisis and is encouraging to see.
“However, they don’t tell the full story. For new recipients this extra money will have made a big difference but there is still a long way to go to get this vital benefit to everyone who is eligible.”
Ms Vine continued: “The UK Government has still not provided up to date figures showing how many people are missing out on the Pension Credit they should be getting.
“This number is likely to still be in the hundreds of thousands. Last year the Government published estimates on uptake in February but has said it has no plans to do so this year. The government has a responsibility to monitor and publish the uptake statistics of this essential benefit payment. Without this, both the Government, and organisations like Independent Age will be unable to successfully target those eligible.”
She added: “We urge the government to implement a Pension Credit uptake strategy so it can tackle the problem of low uptake in a targeted way, otherwise many older people facing financial hardship will be left behind as the cost of living stays worryingly high.”
Helen Morrissey said: “Making sure those on lower incomes claim all they are entitled to is also hugely important. There were 44,000 fewer recipients of Pension Credit compared to the same period last year. This could be down to more people retiring under the New State Pension system but it’s clear there are still many people out there who could be receiving this valuable benefit who aren’t, and we await data showing whether the government’s drive to increase take up has been successful or not.
“In addition to topping up the income of the poorest pensioners it acts as a valuable gateway to other important benefits – most notably the extra cost of living payments issued by the government and so it’s hugely important that everyone who could benefit does so.”
Successful new claimants for Pension Credit will also be eligible for the £900 payments which will be made in three lump sums over the next financial yea with the first instalment of £301 due in the spring. In total, eligible pensioners could be due up to £1,350 in additional support through cost of living payments - find out more here.
Pension Credit is a retrospective benefit, which means it can be backdated by three months and no qualifying period has been announced for the first payment yet, but new claim submitted this month stands a good chance of being eligible for the £301. People can check their eligibility for Pension Credit using the online calculator or by calling the Pension Credit helpline on 0800 99 1234.
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 1.4million 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, follow us on Twitter @Record_Money, or subscribe to our newsletter which goes out Monday to Friday - sign up here.
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