Time is running out for eligible pensioners to receive £301 from the UK Government’s 2023/24 cost of living support package, warns Independent Age, the national older person’s charity. The £900 cost of living payment announced last year will be made in three instalments and is for households on many means-tested benefits including Pension Credit, the income top-up for older people on a low income.
The Department for Work and Pensions (DWP) recently confirmed that if eligible older people make a claim for Pension Credit before Friday May 19, they will be able to backdate it by the maximum of three months, taking it to within the qualifying period for the £301 payment. However, it’s important to note that only successful applicants will receive the cost of living payment along with Pension Credit arrears.
Pension Credit is a form of financial support that tops-up the income of people over the State Pension age who fall below a minimum income threshold. It can be worth over £3,500 per year on average, the equivalent to £60 a week.
The most recent figures from DWP suggest that an estimated 850,000 eligible pensioners could be missing out on the additional financial support.
Even if a person only gets a few pennies extra per week in Pension Credit, it can also unlock additional benefits such as the Warm Home Discount, a free TV licence (for people aged over 75), Council Tax Reduction, help to pay rent and free NHS dental treatment. Independent Age’s research has shown that these extra benefits alone can be worth up to £8,000 a year.
John Palmer, Director of Policy and Communications at Independent Age said: “We’re urging all older people that are financially struggling now to check whether they could receive Pension Credit. Time is running out. Not only could they receive an extra £301 to help with the cost of living, but they will gain an additional weekly income and unlock a host of other entitlements.
”If you think you could be eligible visit the DWP website or call the Independent Age helpline on 0800 319 6789 and we can talk you through the application process, and especially how to backdate your claim by three months so you will receive the £301.”
He added: “Even homeowners and people with savings can be eligible. The support you could be entitled to is sitting in a pot, with up to £1.7 billion a year not being received by those who should be getting it. During this turbulent period of high costs, we all need to make sure we’re receiving all the support we’re entitled to.”
Below is everything you need to know about the benefit to make a claim for yourself, a family member or friend.
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.
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, follow us on Twitter @Record_Money, or subscribe to our newsletter which goes out Monday to Friday - sign up here.
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