The Department for Work and Pensions (DWP) hopes ‘Pension Credit Week of Action’, an awareness campaign which runs until Friday, June 16, will encourage more older people to claim the ‘gateway’ benefit worth more than £3,500 each year. DWP estimates 850,000 pensioners are potentially eligible for the income boost, but not claiming.
The means-tested benefit gives people extra money to help with their living costs if they are over State Pension age and on a low income. Pension Credit can also provide access to a range of other benefits such as help with housing costs, Council Tax, heating bills and for those aged 75 or over, a free TV licence.
However, a rule change in May 2019, means 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 it comes to 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.
Earlier this year, Labour MP Matt Rodda, pressed DWP about the mixed-age policy in the House of Commons.
The Reading East MP said: ‘When one member of a couple is on Universal Credit and the other receives the State Pension, the pensioner is not allowed to claim Pension Credit, which may have a significant impact on the couple’s income. Will the Minister explain that to me, and write to me about it? Will he also consider changing that harsh and unnecessary policy?”
He continued: “It was clear in contributions made by Members from across the House that there was a great deal of feeling about and interest in this matter.”
In his response, Minister for Employment Guy Opperman, focused on the uptake of Pension Credit, rather than responding directly to the proposal.
The quickest way to check if you, or someone you know should claim, is to use the online Pension Credit calculator on GOV.UK here.
For those without access to the internet, or not confident using an online calculator, you can also check if you should claim by calling the Pension Credit helpline on 0800 99 1234 - lines are open 8am to 6pm, Monday to Friday.
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.
Below is everything you need to know about the benefit to make a claim for yourself, a family member or friend, including how to use the Pension Credit calculator and other entitlement an award of just a few pence may provide access to.
Who should check for Pension Credit?
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:
- £240.90 if you are single
- £351.45 if you are a couple
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
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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