The Department for Work and Pensions (DWP) is urging Britons to check if they or someone they know could be eligible to claim Pension Credit.
Pension Credit is worth up to £3,500 a year, tax-free, and is available to state pensioners who are on a low income.
Claiming the benefit can also open doors to additional financial help, such as entitlement to a free TV licence and discounted Council Tax.
Pension Credit is separate from the state pension and people must claim it – it’s not automatically paid. This makes it vital that people know about it to reduce the risk of missing out.
The DWP recently tweeted: “Could someone you know be eligible for #PensionCredit? They could be missing out on an average of £3,500 per year. Talk to them about checking their eligibility online today or call 0800 99 1234.”
Who is eligible for Pension Credit?
To claim, a person must live in England, Scotland or Wales and have reached the state pension age (currently 66 and over). They or their partner must also be in receipt of housing benefits.
If this applies, the person must then work out their total weekly income. This is calculated to include the person’s state pension, other pensions, earnings from employment and self-employment, and most social security benefits, such as Carer’s Allowance.
However, not all benefits are counted as income. For example, the following are not counted and shouldn’t be included in the calculation:
- Adult Disability Payment
- Attendance Allowance
- Christmas Bonus
- Child Benefit
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Social fund payments, such as the Winter Fuel Allowance
- Housing Benefit
- Council Tax Reduction.
People are most likely to be eligible for Pension Credit if their total weekly income is roughly under £220. However, if their income is higher, they might still be eligible.
How much is Pension Credit?
There are two types of Pension Credit available and these include Guarantee Credit and Savings Credit. Successful claimants can also get access to additional benefits, such as help with NHS dental care, council tax discounts, and more.
Currently, Guarantee Credit tops up a person’s weekly income to a guaranteed level of £201.05 if they are single, or for those with partners, a joint weekly income level of £306.85.
Savings credit provides an additional top-up for those who have made some provision towards their retirement by saving or contributing to a pension other than the basic state pension.
This component provides people with an additional £15.94 a week if they’re single, or £17.84 a week for those with partners. People may get extra amounts if they have other responsibilities, conditions and costs to account for, making for a much-needed income boost to many in need.
People can view the full list of additional benefits, what they can receive, and whether or not they qualify for each individual benefit on the Government website.
Pension Credit can be claimed by phone and online, ensuring that older people can apply safely and easily, wherever they are. The online Pension Credit calculator can also help pensioners check if they’re likely to be eligible and get an estimate of what they may receive.
