The Department for Work and Pensions (DWP) is holding a 'Pension Credit Day of Action' on Wednesday, June 15 to encourage hundreds of thousands of older people to check eligibility for a benefit worth more than £3,300, on average, each year in financial support and additional discounts.
The DWP said the Day of Action will seek to "mobilise pensioners, their loved ones and friends" to boost the numbers checking eligibility for Pension Credit and applying for support, which could be an invaluable boost during the cost of living crisis.
And in even better news, older people who start a claim for Pension Credit which is later successful, may also be eligible for the second part of the £650 Cost of Living Payment (£325) which is being made to people on certain means-tested benefits in July and the autumn as no qualifying date has been announced yet.
Figures shared in the latest DWP Touchbase bulletin indicate £1.7 billion is being left unclaimed by around 800,000 pensioners across the UK.
An increase of 30,000 on the figures shared by DWP Minister Guy Opperman last week, who pitched the number of eligible, but not claiming pensioners at 770,000.
The DWP said: "The Day of Action will seek to mobilise pensioners, their loved ones and friends, to boost the numbers checking eligibility for Pension Credit and applying for support worth more than £3,300 a year on average.
“An estimated £1.7bn is being left unclaimed, by around 800,000 pensioners who are missing out. With the increasing cost of living, it is vital that those eligible are encouraged to apply."
Below is everything you need to know about Pension Credit, whether it's for you or someone you know.
What is Pension Credit?
Pension Credit gives people 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 thousands could be missing out on the extra money and discounts it provides every month.
More than 1.4 million people over State Pension age across the UK are currently receiving the benefit, including some 129,671 living in Scotland, and accessing additional financial help with Council Tax, Housing Benefit, hearing bills and a free TV Licence for the over 75s.
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
One of the quickest ways to find out if you are eligible, and how much extra you could potentially be paid every week, is to use the Pension Credit calculator on the GOV.UK website.
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, 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.
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 pensions news and benefits, join our Money Saving Scotland Facebook group here, follow Record Money on Twitter here, or subscribe to our twice weekly newsletter here.
