The Department for Work and Pensions (DWP) recently announced plans to continue encouraging more than 11million State Pensioners to check if they qualify for an annual income top-up worth over £3,500, on average, through Pension Credit. Households will soon receive a letter informing them of their new State Pension payment rate from April along with details on eligibility for Pension Credit.
This is part of an ongoing awareness campaign to encourage more pensioners on a low income to check if they are entitled to additional financial help. In addition to the printed campaign, DWP has also introduced a new interactive Pension Credit claim form which can be completed online, downloaded and posted to the Pension Service.
Some older people may not be aware that, if they are in receipt of Attendance Allowance or certain rates of disability benefits, they may also be entitled to extra Pension Credit, worth £69.40 each week.
Extra Pension Credit if you have a severe disability
You could get an extra £69.40 a week if you get any of the following:
- Attendance Allowance
- Armed Forces Independence Payment
- the middle or highest rate from the care component of Disability Living Allowance (DLA)
- the daily living component of Personal Independence Payment (PIP)
- the daily living component of Adult Disability Payment (ADP) at the standard or enhanced rate
Extra Pension Credit if you care for another adult
If someone gets Carer’s Allowance they may be entitled to extra Pension Credit of £38.85.
They may also get this extra Pension Credit if they are entitled to Carer’s Allowance but are not being paid it, or being paid it at a lower amount than normal, because they are being paid a higher amount by another, income-maintenance benefit such as State Pension - often referred to as an underlying entitlement.
You could get an extra £38.85 a week if:
- you get Carer’s Allowance
- you’ve claimed Carer’s Allowance but are not being paid because you already get another benefit paying a higher amount
DWP guidance on GOV.UK add: “If you and your partner have both claimed or are getting Carer’s Allowance, you can both get this extra amount.”
Extra Pension Credit if you are responsible for children or young people
You could get an extra £56.35 a week for each child or young person you’re responsible for. This is increased to £66.85 a week for the first child if they were born before April 6, 2017. The child or young person must normally lives with you and be under the age of 20.
If they are 16 or over and under 20, they must be in (or accepted for):
- approved training, such as Foundation Apprenticeships
- a course of non-advanced education
If they are in education, it must be for more than 12 hours a week on average. If you get Tax Credits, you cannot get this extra amount of Pension Credit for caring for a child. But you might be eligible for Child Tax Credits.
Full details on the additional payments for Pension Credit can be found on GOV.UK here.
A new claim for Pension Credit which later turns out to be successful will also qualify for the £900 means-tested cost of living payment and the £300 pensioner cost of living payment in 2023/24 - more details on these payments can be found here.
During his Autumn Statement in November, Chancellor Jeremy Hunt announced that Pension Credit will increase by 10.1 per cent from April. This is on top of a 10.1 per cent 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 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 1.4 million people across Great Britain 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.
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