Pension Credit where it’s due!
Around 800,000 State Pensioners living on a low income are not claiming the Pension Credit to which they are entitled. Could one of them be you?
The media has been full of stories recently about the challenges many older people will face this year following the Government’s decision to restrict the Winter Fuel Allowance to those receiving Pension Credit.
Pension Credit is a mean-tested benefit. And while this decision would mean, in theory, that those on the lowest incomes would continue to receive payments, in practice it means that the estimated 800,000 people who should be entitled to Pension Credit but haven’t claimed for it will really be struggling this winter.
The publicity surrounding the decision has led to a huge rush to claim, but hundreds of thousands of pensioners are still missing out.
There are lots of reasons why people who could claim don’t, from an anxiety around the application process (which is, admittedly, complex) through to concerns around confidentiality, language barriers and also a belief that they would not qualify because (for example) they own their own home.
Fortunately, there is help on hand to overcome some of the main barriers, with charities like Independent Age offering telephone assistance for the application process, and the information on this page is drawn from their very helpful website.
So could YOU be entitled to Pension Credit?
There are two types of Pension Credit: Guarantee Credit and Savings Credit.
To qualify for Guarantee Pension Credit, you must be State Pension age. Your weekly income will need to be less than the minimum amount the government says you need to live on. For 2024/25, this is £218.15 for a single person and £332.95 for a couple. This amount could be higher if you're disabled, a carer or have certain housing costs.
You can only get Savings Credit if:
you reached State Pension age before 6 April 2016, or you have a partner who reached State Pension age before this date and was already receiving it and you have qualifying income of at least £189.80 a week for a single person and £301.22 a week for a couple.
To qualify, you simply need to be State Pension age and your weekly income will need to be less than the minimum amount the government says you need to live on.
How much can you get?
Guarantee Credit tops up your weekly income to:
£218.15 for a single person
£332.95 for a couple (married, in a civil partnership or cohabiting).
You might be able to get more than this if you're disabled or a carer, or you have certain housing costs.
Savings Credit can give you up to:
£17.01 a week for a single person
£19.04 a week for a couple (married, in a civil partnership or cohabiting).
The exact amount you’ll get depends on your income and savings. Your income includes assumed income from savings and capital over £10,000.
Other entitlements if you receive Pension Credit
If you get Guarantee Pension Credit, you may qualify for other benefits, including:
* Help with NHS costs, including free dental treatment and travel costs for NHS treatment
* Help with the cost of glasses and contact lenses
* Housing Benefit if you rent
* Reduced Council Tax
* Cold Weather Payments or a Winter Heating Payment (in Scotland)
* Warm Home discount.
* If you’re over 75 years old, you can also apply for a free TV licence.
How to claim Pension Credit
To apply for Pension Credit, call the claim line on 0800 99 1234. You can also claim online if you've already applied for your State Pension.
You can apply for Pension Credit up to four months before you reach State Pension age, and any time after. Claims for Pension Credit can be backdated by up to three months if you qualified for it for the whole of that period.
When you claim, you’ll need the following information:
* Your National Insurance number
* Information about your income, including your pensions
* Details of your savings and investments
* Your bank account details.
If you have a partner, you'll need the same details for them too.
You can also download the form to print out.
If you need support to fill in the form…
…Independent Age’s advisers can help you complete it over the phone. Call their Helpline on 0800 319 6789 to book an appointment.
You can also get help from a voluntary organisation, such as a local Citizens Advice.
When posting your completed form back, you do not need to add a stamp to your envelope.
Rules for mixed-age couples
You cannot usually make a new claim for Pension Credit if you live with a partner who is under State Pension age unless:
* One of you reached State Pension age before 15 May 2019, AND
* One of you has been claiming pension age Housing Benefit since 15 May 2019 as part of the same
If you cannot claim Pension Credit, you may be able to claim Universal Credit instead, until you both reach State Pension age. Contact the Universal Credit helpline on 0800 328 5644 for more information.
