The Department for Work and Pensions (DWP) estimates that 850,000 pensioner households may be entitled to an average annual income boost of around £3,500, but do not claim it as they wrongly believe that because they have savings or own their own home they would not be eligible for Pension Credit.
New claims for the means-tested benefit made before May 19, which are later successful, will also qualify for the £301 cost of living payment, along with future support worth £599. UK Government payments of £300 and £299 are due in the autumn and spring 2024, respectively.
The DWP also recently shared new ways to encourage people of State Pension age - or a friend or family member - to check if they might qualify for the ‘gateway’ benefit, which could also provide additional financial support for housing costs, heating bills and Council Tax. This includes two new explainer-style YouTube videos, one aimed at the individual considering making a claim and one for family members.
Pension Credit tops up a person's income to a minimum of £201.05 per week for single pensioners and to £306.85 for couples or more if a person has a disability or caring responsibilities.
Who should check for Pension Credit eligibility
If you are over 65 and reached State Pension age before April 6, 2016, you could still qualify for Pension Credit if your weekly income is less than:
- £218.80 if you are single
- £319.20 if you are a couple
People can check their eligibility for Pension Credit using the online calculator here or by calling the Pension Credit helpline on 0800 99 1234.
The DWP has also listed some of the main reasons older people may be putting off making a claim for Pension Credit along with myth busting some of the most common misconceptions people may have to encourage them to think again about applying.
Barriers to claiming Pension Credit
DWP highlighted a number of barriers that stop people claiming Pension Credit.
Older people may wrongly think they are not eligible because they:
- have savings
- own their own home
- may be working
- may be getting a small occupational pension
- may have been turned down in the past
Other factors may be that they:
- do not want to be seen as needing to claim
- feel that they’re able to manage
- do not think it’s worth applying - as the amount they get will be very small
- do not recognise themselves as a Pension Credit claimant
- have not got around to it
- think it’s a complex and confusing subject
- already get other help and do not want to mess up the benefits they are getting
Eight Pension Credit myths busted
Having listed some of the main reasons people of State Pension age may be put off from claiming Pension Credit, the DWP has also busted eight common myths about the benefit.
They do not think they will be eligible for Pension Credit
- False - some 1.4 million older people across Great Britain, including over 127,000 living in Scotland currently receive the extra financial support.
They would get so little that it’s not worth claiming
- False - DWP says the average Pension Credit payment is actually over £65 per week - that’s well over an extra £3,500 per year. Plus, getting Pension Credit can provide a passport to help with things like rent, Council Tax, Winter Heating Payment (Scotland only), Cold Weather Payments (not Scotland) and a free TV licence for people aged 75 and over. A new award for just one penny will also qualify for the new £900 means-tested cost of living payment in 2023/24 - find out more here.
They have savings, so will not qualify
- False - DWP explains that people can have savings or another pension and still get extra money. Unlike other income related benefits like Universal Credit, there is no capital cut-off limit and for Pension Credit savings of under £10,000 are ignored.
They own their own home, so will not qualify
- False - DWP explains that homeowners can get Pension Credit too and that almost half of the people who get Pension Credit own their own home.
They are not eligible for Pension Credit - it’s for ‘old’ people
- False - People can claim as soon as they reach the qualifying age, which is now State Pension age - 66 for both men and women.
They cannot get a State Pension, so they will not be eligible
- False - DWP said that they may be entitled to Pension Credit - even if they’re not entitled to a State Pension.
They’ve been turned down for Pension Credit before, so it’s not worth applying again
- False - DWP said that personal circumstances could have changed and their income or capital may have changed as a result. The first £10,000 of savings will be ignored when working out if someone can get Pension Credit.
It’s too complicated and claiming is not worth the effort
- False - DWP has simplified the process and people can claim with one free phone call to the Pension Credit claim line. However, there are other ways to claim such as a paper claim form, which can be downloaded from the GOV.UK website or an online claim can be made - find out more here.
The Pension Service can also help people to claim other benefits such as Housing Benefit, which can help with paying rent, if they’re entitled to those as well. However, they will need to contact their local council directly if they wish to apply for a reduction in their Council Tax.
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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