Hundreds of thousands of pensioners are eligible to claim the Department for Work and Pensions’ (DWP) Pension Credit benefit – yet, they haven’t applied for it. The benefit can boost a person’s income by up to £4,200 a year on average, and it’s estimated that a staggering 700,000 people are missing out.
Rachel Vahey, head of public policy at AJ Bell, said: “Pension Credit has historically been underclaimed, with many people not realising they may be entitled to the payments. Pension Credit won’t be paid automatically, so you have to submit a claim through the DWP.” She added: “If you’re unsure whether to claim because you’re close to the income threshold, there’s no harm in submitting a claim – the worst that can happen is you find you’re not eligible.”
Who is eligible to claim Pension Credit?
The Pension Credit benefit aims to top up people’s state pension to give them a more reasonable standard of living. Claiming can also unlock access to other means of support, such as council tax reductions and free TV licences.
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 receiving housing benefits.
If this applies, the person must then work out their total weekly income. This should include the state pension, other pensions, earnings from employment and self-employment, and most social security benefits, such as Carer’s Allowance.
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.
If you live alone and have a weekly income of less than £227.10 (just over £11,800 a year), then you’ll likely be eligible for Pension Credit. The same applies to a couple with an income of £346.60 per week, equivalent to just over £18,000 a year.
However, if your income is higher, you might still be eligible, so it’s worth using the Government’s calculator to find out.
It takes an average of 16 minutes to check, according to Pensions Minister Emma Reynolds.
Ms Reynolds previously said: “We know 90% of new customers apply using our simple online form or over the phone. So I would urge everyone to check for their own eligibility or assist family members to apply online or pick up the phone today.
« The online process takes on average 16 minutes, so I would encourage people to apply for Pension Credit, worth around £4,200 a year.”
To apply for the benefit, people can reach the helpline by telephone on 0800 99 1234 or by textphone on 0800 169 0133. They can also apply online here.
