Over 750,000 Brits are entitled to Pension Credit but are not claiming it, according to the Department for Work and Pensions (DWP).
Pension Credit claims can be backdated by up to three months and provide access to heating help (Image: Getty)
Nearly 1.4 million older people across Great Britain are claiming pension credit, a means-tested benefit that can provide an average of £4,300 in extra support during the current financial year. But according to the Department for Work and Pensions (DWP) 760,000 pensioners are entitled to the benefit which tops up the state pension but not claiming it.
The DWP will be continuing its awareness campaign this year, encouraging people who are eligible to come forward and make a claim. Married pensioners with a combined weekly income of less than £346 per week, or single pensioners with an income of below £227.10, could be eligible. Older people who have savings or own their home may still be eligible: pension credit also gives access to help with housing costs, heating bills and council tax.
How pension credit works
When you apply for Pension Credit your income is calculated. If you have a partner, your income is calculated together.
Pension Credit tops up:
- your weekly income to £227.10 if you’re single
- your joint weekly income to £346.60 if you have a partner
If your income is higher, you might still be eligible for Pension Credit if you have a disability, you care for someone, you have savings, or you have housing costs.
What counts as income
Your income includes:
- state pension
- other pensions
- earnings from employment and self-employment
- most social security benefits – for example, Carer’s Allowance
What does not count as income
Not all benefits are counted as income. For example, the following are not counted:
- Adult Disability Payment
- Attendance Allowance
- DWP Christmas Bonus
- Child Benefit
- Disability Living Allowance
- Pension Age Disability Payment
- Personal Independence Payment
- social fund payments like Winter Fuel Allowance
- Housing Benefit
- Council Tax Reduction
Your savings
If you have £10,000 or less in savings and investments, this will not affect your Pension Credit.
If you have more than £10,000, every £500 over £10,000 counts as £1 income a week. For example, if you have £11,000 in savings, this counts as £2 income a week.
How to check eligibility for Pension Credit
Older people, or friends and family, can quickly check their eligibility and get an estimate of what they may receive by using the online Pension Credit calculator on GOV.UK here.
Alternatively, pensioners can contact the Pension Credit helpline directly to make a claim on 0800 99 1234 – lines are open 8am to 6pm, Monday to Friday.
Expert help and advice is also available from:
More details about claiming Pension Credit can be found on GOV.UK here.
Mixed aged older couples and Pension Credit
In May 2019, the law changed so 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 claim pension credit
You can start your application up to four months before you reach state pension age. You can claim it at 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.
