Summer holiday payment alert for Pension Credit claimants: Many recipients may risk having their payments stopped or reduced if they fail to report travel plans. The means-tested benefit, which provides an average of £4,300 annually in additional financial assistance for those aged over 66 on a low income, also unlocks access to Council Tax reductions and help with energy bills, including the Warm Home Discount Scheme.
Over 1.4 million elderly people across Great Britain currently receive Pension Credit. However, the Department for Work and Pensions (DWP) requires claimants to report if they intend to travel outside mainland Britain for any period, including holidays. Guidance on GOV.UK confirms this applies to those leaving England, Scotland, and Wales.
The DWP states: "You need to report changes to you and your partner's personal and financial circumstances. Your claim might be stopped or reduced if you do not report a change straight away. Some changes will increase the amount of Pension Credit you could get."
Changes to Personal Circumstances
A change of personal circumstances can include:
- Moving to a new address
- Starting or stopping living with a partner
- The death of a partner named on your claim
- Starting or stopping work
- Going into hospital or a care home
- People moving in or out of your house
- Changing your name
- Switching your bank account
- Leaving Scotland, England, or Wales for any period (e.g., going on holiday)
- Starting or stopping looking after a child or young person under 20
- Changes to your immigration status if you're not a British citizen
If you go into a care home for more than four weeks, you must also report changes to care home fees funding, temporary stays becoming permanent, moving to another care home, or going into hospital.
Changes to Financial Circumstances
You also need to report changes in income or expenses, including:
- Housing costs, such as ground rent or service charges
- Benefits received by anyone in your home, including new benefits or stopped benefits
- Occupational or personal pensions, including new pensions or lump sums
- Other income, such as foreign pensions
- Savings, investments, or property
The DWP encourages anyone uncertain about reporting changes to call the Pension Credit helpline at 0800 99 1234. However, the DWP warns: "You could be taken to court or have to pay a penalty if you give wrong information or do not report a change in your circumstances."
Recent DWP statistics reveal that more than 700,000 eligible people are not claiming Pension Credit, despite being entitled. Some elderly people assume savings or property ownership disqualify them, but an award of just £1 weekly unlocks additional support.
Pension Credit in a Nutshell
When you apply for Pension Credit, your income is calculated. If you have a partner, your income is calculated together. Pension Credit tops up your weekly income to £238.00 if you're single, or your joint weekly income to £363.25 if you have a partner. If your income is higher, you might still be eligible if you have a disability, care for someone, have savings, or have housing costs.
What Counts as Income
Your income includes State Pension, other pensions, earnings from employment and self-employment, and most social security benefits (e.g., Carer's Allowance).
What Does Not Count as Income
Benefits not counted include Attendance Allowance, DWP Christmas Bonus, Child Benefit, Disability Living Allowance, Pension Age Disability Payment, Personal Independence Payment, social fund payments like Winter Fuel Allowance, Housing Benefit, and Council Tax Reduction.
Your Savings
If you have £10,000 or less in savings and investments, it will not affect your Pension Credit. If you have more than £10,000, every £500 over £10,000 counts as £1 income per week.
How to Check Eligibility
Older people, or their friends and family, can assess eligibility using the online Pension Credit calculator on GOV.UK. Alternatively, call the helpline at 0800 99 1234 (8am to 6pm, Monday to Friday). Expert help is available from Independent Age, Income Max, Citizens Advice, and Age UK.
Other Help if You Get Pension Credit
Qualifying for Pension Credit can also provide Housing Benefit, Support for Mortgage Interest, Council Tax discount, free TV licence (if aged 75+), help with NHS dental treatment, glasses, transport costs for hospital appointments, help with heating costs through the Warm Home Discount Scheme, and a discount on Royal Mail redirection service if moving house.
Mixed Age Older Couples
Since May 2019, a 'mixed age couple' (one partner of State Pension age, the other under) is considered a 'working age' couple for means-tested benefits. They cannot claim Pension Credit until both are State Pension age.
How to Use the Pension Credit Calculator
To use the calculator, you need details of earnings, benefits, pensions, savings, and investments. You'll answer questions about date of birth, residential status, location in the UK, registered blind status, current benefits, weekly benefit amounts, Carer's Allowance, pension amounts, employment earnings, and savings. A summary screen allows you to review and submit. The calculator shows how much you could receive weekly. You can then apply online or print the answers for faster application.
Who Cannot Use the Calculator?
You cannot use the calculator if you or your partner are deferring State Pension, own more than one property, are self-employed, or have housing costs not covered by mortgage or Housing Benefit.
How to Make a Claim
You can start your application up to four months before reaching State Pension age. Claims can be backdated three months. You need your National Insurance number, income, savings, investments details, and bank account details. Apply online if you have already claimed State Pension and no children are included in the claim. For help, call the helpline or use the GOV.UK calculator.
