Charity calls for new Pension Credit strategy to help more older people claim £3,500 income top-up

The Department for Work and Pensions (DWP) recently said that an estimated 850,000 older people on a low income could be eligible for an annual top-up of around £3,500 through Pension Credit – and the next cost of living payment worth £300. The DWP announced earlier this week that payments for the second part of the £900 cost of living payment will be made between October 31 and November 19, 2023.

Some 1.4 million older people across Great Britain, including more than 127,000 living in Scotland currently in receipt of Pension Credit, could be due the £300 automatic payment in the next few weeks. However, it also means that now that the qualifying period has been announced, new claims for Pension Credit made before mid-December, which later turn out to be successful, will also qualify for the £300 payment – even if their benefit award is just a few pence.

However, the charity Independent Age says the UK Government needs to put a new plan in place to urgently address the growing numbers of pensioners in poverty. They suggest that a Pension Credit uptake strategy should be devised to ensure that all older people on a low income are aware of, and receiving, the money that has been set aside for them.

Morgan Vine, Head of Policy and Influencing at Independent Age, said: “While the announcement of these payment dates will provide much-needed clarity for some older people in financial hardship, for the most financially vulnerable people we support, this money will only scratch the surface. Older people tell us they are falling into debt to pay their bills and skipping meals to make ends meet.

“In addition, with Pension Credit take up being used as a way to target cost of living payments for those on low incomes, we are incredibly concerned that the last data set released by the UK Government shows that up to 850,000 eligible households are not receiving the Pension Credit they are entitled to.

“If these numbers remain high, many more older people in financial hardship will continue to miss out on the support they are entitled to.”

Morgan continued: “The Government must urgently come up with long-term solutions for the more than 2 million older people in poverty, instead of short-term fixes. This should include a Pension Credit uptake strategy to ensure that all older people on a low income are aware of, and receiving, the money that has been set aside for them.”

Older people – or friends and family – can quickly check their eligibility and get an estimate of what they may receive by using the online Pension Credit calculator on GOV.UK here. Alternatively, pensioners can contact the Pension Credit helpline directly to make a claim on 0800 99 1234 – lines are open 8am to 6pm, Monday to Friday.

Older people can also check eligibility through the Independent Age helpline on 0800 319 6789 or use the online benefit checker at independentage.org.

Pension Credit in a nutshell

Pension Credit gives people extra money to help with their living costs if they are over State Pension age and on a low income. It can also provide access to a range of other benefits.

Pension Credit tops up a person’s income to a minimum of £201.05 per week for single pensioners and £306.85 for couples, or more if a person has a disability or caring responsibilities.

Below is everything you need to know about the benefit to make a claim for yourself, a family member or friend, including how to use the Pension Credit calculator and other entitlement an award of just a few pence may provide access to.

Who should check for Pension Credit?

If you are over 65 and reached State Pension age before April 6, 2016, you could still qualify for Pension Credit if your weekly income is less than:

• £240.90 if you are single
• £351.45 if you are a couple

Other help if you get Pension Credit

If you qualify for Pension Credit you can also get other help, such as:

• Housing Benefit if you rent the property you live in
• Support for Mortgage Interest if you own the property you live in
• Council Tax discount
• Free TV licence if you are aged 75 or over
• Help with NHS dental treatment, glasses and transport costs for hospital appointments
• Help with your heating costs through the Warm Home Discount Scheme
• A discount on the Royal Mail redirection service if you are moving house

Mixed aged older couples and Pension Credit

In May 2019, the law changed so a ‘mixed age couple’ – a couple where one partner is of State Pension age and the other is under it – are considered to be a ‘working age’ couple when checking entitlement to means-tested benefits.

This means they cannot claim Pension Credit or pension age Housing Benefit until they are both State Pension age. Before this DWP change, a mixed age couple could be eligible to claim the more generous State Pension age benefits when just one of them reached State Pension age.

How to use the Pension Credit calculator

To use the calculator on GOV.UK, you will need details of:

You’ll need the same details for your partner if you have one.

You will be presented by a series of questions with multiple choice answer options.

This includes:

• Your date of birth
• Your residential status
• Where in the UK you live
• Whether you are registered blind
• Which benefits you currently receive
• How much you receive each week for any benefits you get
• Whether someone is paid Carer’s Allowance to look after you
• How much you get each week from pensions – State Pension, private and work pensions
• Any employment earnings
• Any savings, investments or bonds you have

Once you have answered these questions, a summary screen shows your responses, allowing you to go back and change any answers before submitting. The Pension Credit calculator then displays how much benefit you could receive each week.

All you have to do then is follow the link to the application page to find out exactly what you will get from the DWP, including access to other financial support.

There’s also an option to print off the answers you give using the calculator tool to help you complete the application form quicker without having to look out the same details again. Try the Pension Credit Calculator for yourself or your family member to make sure you’re receiving all the financial support you are entitled to claim.

Who cannot use the Pension Credit calculator?

You cannot use the calculator if you or your partner:

• are deferring your State Pension

• own more than one property

• are self employed

• have housing costs (such as service charges or Crown Tenant rent) which are neither mortgage repayments nor rent covered by Housing Benefit

How to make a claim

You can start your application up to four months before you reach State Pension age. You can claim any time after you reach State Pension age but your claim can only be backdated for three months.

This means you can get up to three months of Pension Credit in your first payment if you were eligible during that time.

You will need:

• your National Insurance number

• information about your income, savings and investments

• your bank account details, if you’re applying by phone or by post

If you’re backdating your claim, you’ll need details of your income, savings and investments on the date you want your claim to start.

Apply online

You can use the online service if:

To check your entitlement, phone the Pension Credit helpline on 0800 99 1234 or use the GOV.UK Pension Credit calculator here to find out how much you could get.