People born before a certain date have a higher income threshold for Pensions Credit, it has been confirmed, meaning they could still receive the £300 winter fuel payment. For those who reached state pension age before 6 April 2016 – men born before 6 April 1951; women born before 6 April 1953, the DWP has confirmed the thresholds are higher.
Contrary to the widely-held assumption that the threshold for Pension Credit is £218.15 for single individuals and £332.95 for couples, official Department for Work and Pensions (DWP) guidance indicates that those who reached State Pension age before 6 April 2016 can qualify with higher incomes of £260.68 for singles and £380.55 for couples.
BBC expert Paul Lewis noted, “Those who reached pension age before 6 April 2016 have a higher threshold. The constant use of the lower threshold helps put people off claiming.”
According to the DWP’s Pension Credit toolkit, four key questions determine a pensioner’s eligibility for Pension Credit: their age, their partner’s age (if applicable), their weekly income, and their savings. While the toolkit suggests that those with incomes below £218.15 (single) or £332.95 (couple) and savings under £10,000 may qualify, it also notes that individuals with higher incomes or savings may still be eligible, with these questions serving as a basic indicator of potential qualification.
“If they are over 65 and reached their State Pension age before 6 April 2016, they could still qualify for Pension Credit if their weekly income is less than: “260.68 if they are single, £380.55 if they are a couple. “”.
It’s estimated that around 880,000 individuals who are eligible for Pensions Credit are not currently claiming it. Campaigners, including Martin Lewis, are encouraging people to apply even if they believe they may not qualify.
Earlier this year, the Labour government discontinued the £2-300 winter fuel payment for anyone not receiving Pensions Credit – impacting over 10 million individuals.
The criteria for pension credit eligibility varies depending on age and gender. The income thresholds for those who reached state pension age before 6 April 2016 (men born before 6 April 1951; women born before 6 April 1953) are:
- Single income below £260.68/week.
- Couple income below £380.55/week.
For those who reached state pension age on or after 6 April 2016:
- Single income below £218.15/week.
- Couple income below £332.95/week.
In an article for Saga, Mr Lewis highlighted: “And that rule creates both age and sex discrimination. For example, neighbours Barbara and Susan live alone, each on an income of £250 a week.”
People who have more income or savings than this may still qualify for Pension Credit. But these questions are a good basic indication of who is likely to qualify.
“But Barbara reached pension age on 5 April 2016 and could get pension credit of £4.27 a week (£222 a year) plus the £200 Winter Fuel Payment. Susan, who reached pension age on 6 April 2016, could not get pension credit or Winter Fuel Payment and would be £422 a year worse off than her day older neighbour.”
To apply for Pensions Credit click here.
