Pension Credit is a financial scheme that offers those over 66 and on low incomes an extra helping hand with money, bolstering millions of retirees' pensions.
The scheme was devised to support living costs, but can also help with anything from ground rent to service charges.
Separate from a state pension, people can receive Pension Credit even if they have other forms of income, extra savings or their own property.
Those who are eligible could receive over £14,000 a year, or even more if they care for an adult, child or disabled person.
With the cost of living soaring, and the DWP urging people to step forward and claim their support, here's everything you need to know about the scheme, including how much you could get and how to claim.
Who is eligible for pension credit?
Over 1.5 million households across the UK receive Pension Credit, however the latest figures from the government have revealed that 850,000 people could be missing out on claiming the money.
The scheme can be particularly handy for carers, those looking after children or people with disabilities.
If applying for Pension Credit, you must include your partner's situation in your application.
You'll be eligible for support if:
- you and your partner have both reached State Pension age (66 years old or above)
- one of you is getting Housing Benefit for people over State Pension age
If you have less than £10,000 in savings then your Pension Credit will not be impacted, however if your savings go over this threshold support will be deducted accordingly.
How much could I get?
Pension Credit takes into account your income and relationship status when calculating your support. If you have a partner, your income is calculated as one.
Pension Credit tops up:
- your weekly income to £182.60 if you’re single
- your joint weekly income to £278.70 if you have a partner
'Income' includes:
- State Pension
- other pensions
- earnings from employment and self-employment
- most social security benefits, for example Carer’s Allowance
If you are severely disabled, you could get an extra £69.40 a week if you get any of the following:
- Attendance Allowance
- the middle or highest rate from the care component of Disability Living Allowance (DLA)
- the daily living component of Personal Independence Payment (PIP)
- Armed Forces Independence Payment
In addition, carers can receive a further £38.85 a week, and those looking after young children will be eligible for a further £56.35 every week.
The government offer a handy Pension Credit calculator, to help you figure out how much you can get.
How do I claim Pension Credit?
You can begin your application for Pension Credit up to four months before you reach the state pension age.
The DWP has a Pension Credit Toolkit which includes a quick guide to help you through your application process.
When signing up you'll need:
- your National Insurance number
- information about your income, savings and investments
- your bank account details
