HARD-PRESSED households are missing out on thousands of pounds in support – and pension credit is the key to unlocking the help.
Around 850,000 older households on low incomes are missing out on an average of £9,665 a year in pension top-ups.
Pension credit is worth around £3,900 a year on average and unlocks many other benefits, such as council tax reductions and help with energy costs.
There are other bonuses available too, such as cold weather payments, free NHS dental treatment and a free TV licence.
But recent figures from Policy in Practice revealed that thousands of eligible pensioners are missing out.
The founder of Policy in Practice, Deven Ghelani, is warning it’s more important that ever that households check if they are eligible following the changes to the winter fuel payment.
The payment is now limited to retirees on pension credit or those receiving other means-tested benefits including Universal Credit.
Deven said: “There really is no excuse for the shockingly low levels of Pension Credit take up as many older people continue to struggle with the cost of living.”
How much can you get on pension credit?
Pension Credit is worth £218.15 if you’re single or for couples it’s £332.95.
If your income is lower than this, you should be eligible for the benefit.
You could get the “Savings Credit” part of pension credit if both of the following apply:
- You reached State Pension age before April 6, 2016
- You saved some money for retirement, for example, a personal or workplace pension
This part of pension credit is worth £17.01 for single people or for couples, £19.04.
You may also get additional pension credit if you are disabled, have caring responsibilities or have to pay certain housing costs such as mortgage interest payments.
You can find out more about Pension Credit including how to apply in our guide.
What other help can I get on pension credit?
Pension Credit also unlocks other support such as Housing Benefit and Council Tax support.
It opens up eligibility for social tariffs and the warm home discount, cheaper broadband, free TV licenses, lower water bills and the Winter Fuel Payment.
Below we outline how much each element of the extra support is worth:
- Housing Benefit – £4,338
- Council Tax support – £1,670
- Winter Fuel Payment – £300
- Broadband – £200
- Free TV licence – £170
- Water – £160
- Warm Home Discount – £150
Who is eligible for pension credit?
Anyone over the state pension age living in England, Scotland, or Wales is eligible for pension credit.
The state pension age is currently 66 for both men and women.
To qualify, you must have a weekly income of less than £218.15 for single people or £332.95 for couples.
Your estimated income could include:
- Your state pension
- Any other pensions you have saved, for instance, workplace or private pension savings
- Most social security benefits, for example, carer’s allowance
- Any savings or investments worth over £10,000
- Earnings from a job
The calculation does not include:
- Attendance allowance
- Christmas bonus
- Disability living allowance
- Personal independence payment
- Housing benefit
- Council tax reduction
If your income is too high to get pension credit, you may still get some savings pension credit, so it’s worth checking.
It used to be the case that couples, where one person was over state pension age, could claim, but new rules now mean that both people in a couple must be over retirement age to apply.
This means if you’re single and move in with a partner who is younger than the state pension age, you will stop being eligible.
But if you’re already receiving pension credit under the old system it won’t stop unless your circumstances change.
How do I apply and how will I be paid?
You can start your application up to four months before you reach State Pension age.
You can make an application on the Government website or by ringing the Pension Credit claim line on 0800 99 1234.
You can get a friend or family member to ring for you, but you’ll need to be with them when they do.
You’ll need the following information about you and your partner if you have one:
- National Insurance number
- Information about any income, savings and investments you have
- Information about your income, savings and investments on the date you want to backdate your application to (usually 3 months ago or the date you reached State Pension age)
You can also get help with the application process through charities and non-profit organisations such as Independent Age and Age UK.
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