Nearly a million pensioners are being encouraged to see if they qualify for an income boost of £3,900, which also includes access to Winter Fuel Payments from the Department for Work and Pensions (DWP). Last month, Chancellor Rachel Reeves said the annual allowance designed to help with winter heating costs would no longer be paid to all state pensioners.
Instead, it is only given to those who receive income-related benefits such as Pension Credit. Many seniors may not realise that a new claim for Pension Credit made before the first week of December and subsequently successful may also qualify for a retroactive Winter Fuel Payment.
This is because Pension Credit claims can be backdated by up to three months, provided the applicant meets the eligibility criteria. This would bring all new claims submitted before December into the qualifying week of September 16-22, the Daily Record reports.
The Chancellor also announced an initiative to increase the take-up of Pension Credit, which currently provides financial help and access to other benefits and discounts to 1.4 million people in the UK.
Cohabiting couples of different ages and older people who receive certain benefits, such as Universal Credit, Income Support, Jobseeker’s Allowance or Employment and Support Allowance, are still entitled to Winter Fuel Payments.
Amid changes to eligibility rules, Just Group has urged state pension recipients to check their entitlement to Pension Credit. Stephen Lowe of Just Group highlighted the problem of unclaimed help: “In contrast, the government’s own figures show that up to 880,000 families entitled to Pension Credit fail to apply each year, missing out on an average of £2,200 a year, or more than £2 billion in total. When you add up the other benefits it triggers, claiming could be worth £8,000 a year.”
Lowe continued to urge action, saying: “We would urge everyone to use this decision as a reason to check their rights, or to ask someone like a family member to do it on their behalf. It could mean thousands of dollars in additional revenue.”
How to easily check your pension credit entitlement
Older people can quickly determine whether they qualify for pension credit and how much they can expect by using the online calculator available here on GOV.UK.
You can also contact the Pension Credit helpline directly if you wish to make a claim. You can contact them by calling 0800 99 1234, weekdays from 8am to 6pm.
Additional expertise and guidance is available through:
The conclusion provides a summary of the benefits and guidance for those who should assess their suitability, including the potential amounts involved.
Pension credit explained
Pension Credit is a benefit that provides extra money to help with living costs for people over state pension age and on low incomes. It also opens up access to a variety of other benefits.
The benefit increases income to a minimum of £218.15 a week for single pensioners and £332.95 for couples. The amount is higher if someone has a disability or caring responsibilities.
Even an amount of just £1 a week can provide other support, such as winter fuel payments.
Additional help if you receive Pension Credit
If you qualify for pension credit, you can also take advantage of other forms of assistance, such as:
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Housing benefit if you rent the home you live in
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Mortgage interest support if you own the property you live in
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Discount on municipal tax
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Free TV license if you are 75 or older
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Help with NHS dental treatment, glasses and transport costs for hospital appointments
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Help with your heating costs through the Warm Home Discount Scheme and Winter Fuel Payment
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Discount on Royal Mail forwarding service if you are moving house
Changes for older couples of mixed age and Pension Credit
In May 2019, the legislation was amended so that ‘mixed-age couples’ – where one partner is of state pension age and the other is not – are now considered a ‘working’ couple when assessing entitlement to income-related benefits.
This means that they cannot claim pension credit or pensionable housing benefit until both partners have reached state pension age. Before this DWP change, a mixed-age couple could qualify for the more generous state pension age benefits if only one of them had reached state pension age.
How to use the Pension Credit Calculator
To use the calculator on GOV. UK you will need the following information:
You will need the same information for your partner if you have one. You will be given a series of questions with multiple choice answer options.
This includes:
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Your date of birth
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Your residential status
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Where in the UK you live
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Whether you are registered blind
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What benefits you are currently receiving
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How much you receive each week for any benefits you receive
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Whether someone receives a caregiver allowance to care for you
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How much you receive per week from pension – AOW, private and company pensions
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All income from employment
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Any savings, investments or bonds you have
Once you have answered the required questions, your answers will be displayed on a summary screen, giving you the opportunity to revise any answers before you finally submit them. The Pension Credit calculator will then show you the potential weekly benefit you could receive.
The next step is to simply follow the link to the application page, where you will find out exactly what you are entitled to from the DWP, including access to other financial support.
There is also a handy option to print your answers from the calculator, so you can complete the application form more quickly without having to remember the same details. Try the Pension Credit Calculator for yourself or a family member to make sure you claim all the financial support you are entitled to.
Who is the Pension Credit Calculator not suitable for?
The calculator is not suitable if you or your partner:
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postpone your AOW benefit
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own more than one home
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are self-employed
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have housing costs (such as service charges or rent from the Crown) that are neither mortgage costs nor rent that fall under the Rent Allowance
How to file a claim
You can submit your application up to four months before reaching state pension age. Claims can be submitted at any time after you reach state pension age, but can only be submitted retroactively for three months.
This means that with your first payment you can receive up to three months of pension credit if you were eligible during that period.
You will need your National Insurance number to proceed, as well as details of your income, savings and investments, and your bank account details if you are claiming by phone or post. If you are backdating your claim, you will need to provide details of your income, savings and investments on the date you want your claim to start.
You can apply online if you have already claimed your State Pension and no children or young people are included in your claim. To check your entitlement, call the Pension Credit helpline on 0800 99 1234 or use the GOV.UK Pension Credit calculator here to work out how much you could receive.