Older people urged to claim £3,500 annual Pension Credit top-up as new applications dip

New figures published by the Department for Work and Pensions (DWP) show in the financial year end (FYE) 2022, an estimated 63 per cent of pensioner households who were entitled to an annual income top-up of more than £3,500, claimed it. This means up to 880,000 people over State Pension age missed out on Pension Credit.

Retirement experts and charities said the drop from 66 per cent claiming in FYE 2020 is worrying, however, the data notes the pandemic did affect how information was gathered and this may well have impacted the results. Since April 2022, the DWP has been running an ongoing awareness campaign to drive take-up of the means-tested benefit and announced recently between May 2022 and May 2023, new claims for Pension Credit were up 75 per cent.

But the bottom line is hundreds of thousands of people who are struggling in retirement are not getting the financial help they need – and are entitled to.

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “Pension Credit boosts the income of the poorest pensioners and acts as a valuable gateway to other benefits, such as help with heating bills and NHS treatment.

“If you’re over 75, you’re also entitled to a free TV licence. Most notably, claiming Pension Credit also means you are entitled to a series of cost of living payments, which can make a huge difference in these difficult times. Quite simply, not claiming Pension Credit can leave you poorer to the tune of thousands of pounds.”

She explained that Pension Credit could “really boost people’s income in retirement, and it is vitally important that those who think they may be entitled to support check to see if they are entitled”.

Joanna Elson CBE, Chief Executive of Independent Age said: “It is heartbreaking that hundreds of thousands of older people have suffered needlessly, while this money has been available all along.

“The UK Government’s awareness raising activity during this time had the right intentions, but it’s clear that efforts to raise awareness of Pension Credit failed to reach the right people. The Government must quickly learn from its mistakes and consider a more targeted approach that gets money directly into the pockets of those that need help.

“We want to see the introduction of a Pension Credit uptake strategy that spells out how older people living in, or on the edge of poverty can access the financial support they are entitled to receive. Winter is fast approaching, the time for action is now.”

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.

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.

£300 cost of living payment

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 – payments will be made between October 31 and November 19, 2023.

However, it also means 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.

This is because Pension Credit is a retrospective benefit that can be backdated by up to three months. The qualifying period for the £300 cost of living payment is between August 18 and September 17.

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.

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.

Join the Daily Record’s WhatsApp community here and get the latest news sent straight to your messages.