Hundreds of thousands of pensioners could be missing out on a bonus worth up to £3,500. The Department for Work and Pensions (DWP) estimates that around 850,000 older people may be missing out on a means-tested payment.
Pension credit provides people extra money to help with their living costs if they are over state pension age and on a low income. It tops up a person’s income to a minimum of £201.05 per week for single pensioners and to £306.85 for couples or more if a person has a disability or caring responsibilities.
Pension credit can be worth up to £3,500 each year in financial support. It is currently claimed by 1.4m pensioners in Great Britain but the government believes that number should be higher.
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And there’s a quick and easy way you can check if you or your loved ones are eligible, Wales Online reports. Older people – or friends and family – can check GOV.UK here to see if they could claim it.
They will also get an estimate of the amount they might receive by using the online pension credit calculator on GOV.UK here. Alternatively, pensioners can contact the pension credit helpline directly for help on 0800 99 1234.
The lines are open 8am to 6pm, Monday to Friday. As well as giving people access to extra money, Pension Credit also acts as a ‘passport’ allowing people to get extra help with other bills including heating their homes and council tax costs.
The full new state pension is worth around £10,600 and a full basic state pension is £8,100 during the 2023/24 financial year.
Retirement expert Helen Morrissey has previously warned that many older people do not receive anywhere near the full amount of state pension, with many receiving less than £100 per week. A lot of those are women who have gaps in their National Insurance contribution due to raising families.
Helen, head of retirement analysis at Hargreaves Lansdown, said: “State pension incomes may have surged this year but still come nowhere near meeting our retirement income needs. Spending tends to fall sharply as we get older as you may go out less and you may not drive as much as you once did.
“Many over-65s will have their retirement incomes bolstered by final salary pension provision but those who don’t face real challenges and those of us still working need to plan if we are to have enough to live well in retirement.”
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 are eligible for pension credit, you could get access to a whole range of financial help. This includes:
- Housing Benefit if you rent a proerty
- Support for Mortgage Interest if you own a property
- 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
Those who meet the criteria but have a partner who is not State Pension age will not receive the benefit until they are both at the age to claim a pension. In May 2019, the law changed so a ‘mixed age couple’ are considered to be a ‘working age’ couple.
How to use the pension credit calculator
To use the calculator on GOV.UK, you will need details of:
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 the calculator has shown how much you could be entitled to, there is a link to follow to the application page to find out more from the DWP.
Try the Pension Credit Calculator.
Who cannot use the pension credit calculator?
You cannot use the calculator if you or your partner:
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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.
