The Department for Work and Pensions (DWP) has confirmed that nearly 78 per cent of all new Pension Credit claims are processed within the target timeframe of 50 working days. This means older people on a low income submitting a new claim at the start of this month could receive their first payment and any arrears by mid-July.
Pension Credit: The Most Under-Claimed Benefit
Pension Credit remains the most under-claimed benefit, designed to provide extra financial support for older people on a low income. Nearly 1.4 million older people across Great Britain currently receive this means-tested benefit, which could deliver over £4,300 in additional support throughout the coming year. Many elderly people mistakenly believe that having savings or owning their home would disqualify them, but even receiving as little as £1 per week is sufficient to access additional support.
Who Is Eligible to Claim Pension Credit?
Pension Credit comes in two forms: Guarantee Credit and Savings Credit. To be eligible for Guarantee Pension Credit, you must have reached State Pension age and your weekly income must fall below the minimum amount the UK Government deems necessary to live on. This stands at £238.00 for a single person and £363.25 for a couple. The figure could be higher if you are disabled, a carer, or have certain housing costs.
How Much Could You Receive from DWP?
Guarantee Credit tops up your weekly income to £238.00 for a single person or £363.25 for a couple. You might get more if you are disabled or a carer. Savings Credit can give you up to £17.96 a week for a single person or £20.00 a week for a couple. The precise amount depends on your income and savings, including assumed income from savings and capital over £10,000.
How to Check Your Eligibility
Older people, or their friends and family, can quickly check eligibility and obtain an estimate of potential payments using the online Pension Credit calculator on GOV.UK. Alternatively, you can call the Pension Credit helpline at 0800 99 1234 (Monday to Friday, 8am to 6pm). Expert help is also available from Independent Age, Income Max, Citizens Advice, and Age UK.
Common Myths About Pension Credit
- “I have savings so I won’t qualify.” Savings over £10,000 are taken into account, but many with modest savings still qualify.
- “I own my home so I’m not eligible.” Home ownership does not automatically disqualify you.
- “I have a small private pension so I’ll be refused.” Pension Credit tops up income, so even small occupational pensions can leave you eligible.
- “The amount would be too small to bother.” Even a small award can unlock help with housing costs, council tax, and energy bills.
- “It’s too complicated to apply.” Claims can be made online or by phone through the DWP.
Other Help If You Get Pension Credit
Qualifying for Pension Credit may also entitle you to Housing Benefit, Support for Mortgage Interest, Council Tax discount, a free TV licence if aged 75 or over, help with NHS dental treatment, glasses, and transport costs, heating cost help through the Warm Home Discount Scheme, and a discount on Royal Mail redirection service when moving house.
Mixed Age Older Couples and Pension Credit
Since May 2019, a 'mixed age couple' where one partner has reached State Pension age and the other has not are treated as a 'working age' couple for means-tested benefits. Neither partner can claim Pension Credit or pension age Housing Benefit until both have reached State Pension age.
How to Use the Pension Credit Calculator
To use the calculator on GOV.UK, you will need details of your earnings, benefits, pensions, savings, and investments. You will answer questions about your date of birth, residential status, where in the UK you live, whether you are registered blind, which benefits you receive, and more. After submitting, the calculator shows how much benefit you could receive each week. You can then follow the link to the application page.
Who Cannot Use the Calculator?
You cannot use the calculator if you or your partner are deferring your State Pension, own more than one property, are self-employed, or have housing costs that are not mortgage repayments or rent covered by Housing Benefit.
How to Apply
You can apply up to four months before reaching State Pension age or at any point after. Claims can be backdated by up to three months. You will need your National Insurance number, information about your income, savings, and investments, and your bank account details if applying by phone or post. Apply online if you have already claimed your State Pension and there are no children or young people included in your claim. For more information, call the Pension Credit helpline at 0800 99 1234 or use the GOV.UK calculator.
