Married couples over state pension age could be entitled to up to £4,300 a year in Pension Credit, but thousands still aren’t claiming it.
Pension Credit is a means-tested benefit designed to top up the incomes of older people on low incomes and help them cope with rising living costs.
It is paid by the Government, and can provide a significant financial boost to both single pensioners and couples whose income falls below a set weekly level.
Around 1.4 million pensioners across the UK currently receive the benefit, according to the Department for Work and Pensions (DWP).
However, official estimates suggest around 760,000 people who qualify for the benefit are not claiming it, with the average value of Pension Credit this financial year at around £4,300 per household.
For couples who qualify, the benefit can increase their combined weekly income to £346.60.
Single pensioners who are eligible can have their weekly income topped up to £227.10.
Figures reported by the Daily Record show that 78 per cent of new Pension Credit claims are processed within 50 working days.
Eligibility is not affected by whether someone owns their home, has savings, or receives income from other sources, although these factors are taken into account when calculating entitlement.
Additional amounts may be available for people who are carers, those who are severely disabled, or those who are responsible for a child or young person.
Hundreds of thousands still aren’t claiming
|
GETTY
Receiving Pension Credit can also unlock access to a range of other financial support, including help with Housing Benefit and reductions in Council Tax.
Claimants may also qualify automatically for Cold Weather Payments during periods of particularly low temperatures.
Anyone with a partner must include them on the application, even if the partner has not yet reached the required age.
In some cases, a claim may also be possible if one partner is over state pension age and the other is receiving Housing Benefit for older people.
When assessing eligibility, the Government counts most forms of income.
Households are missing out on support on bills like council tax
|
GETTY
This includes the state pension, workplace or private pensions, earnings and most social security benefits.
However, the following payments are excluded from the income calculation:
- Adult Disability Payment
- Attendance Allowance
- Child Benefit
- Christmas Bonus
- Council Tax Reduction
- Disability Living Allowance
- Housing Benefit
- Pension Age Disability Payment
- Personal Independence Payment
- Scottish Adult Disability Living Allowance
- Social fund payments, including the Winter Fuel Payment
Unclaimed workplace or personal pensions still count as income, even if the money is not being actively received.
Any deferred state pension amounts are also included in the assessment.
Savings of up to £10,000 do not affect Pension Credit entitlement, but anything above that figure is treated as producing additional income.
For every £500 held above the threshold, £1 a week is added to the income calculation, meaning someone with £12,000 in savings would have £4 a week added to their assessed income.
Successful applicants automatically qualify for Cold Weather Payments, with those aged 75 or over may also be able to apply for a free TV licence.
People who receive the Guarantee Credit element of Pension Credit may qualify for help with NHS costs, including prescriptions and dental treatment.
Support is also available for health costs
|
GETTY
Claims for Pension Credit can be submitted up to four months before reaching state pension age.
If a claim is made after reaching state pension age, it can usually be backdated for up to three months.
Applications can be made online through the Government website, or by calling the Pension Credit claim line on 0800 99 1234.
Alternatively, applications can be submitted by post using Freepost DWP Pensions Service 3.
No stamp is required, but applicants must print the claim form themselves or request one by phone.