Low-income pensioners who receive Attendance Allowance, or the middle or highest rate of the care component of Disability Living Allowance (DLA), Personal Independence Payment (PIP), or Adult Disability Payment (ADP) may be entitled to extra Pension Credit, according to online guidance from the Department for Work and Pensions (DWP). This also includes older people in Scotland claiming Pension Age Disability Payment (PADP), the devolved benefit that has replaced Attendance Allowance north of the border.
How Much Extra Could You Get?
The disability element of Pension Credit is worth £86.05 a week for single pensioners, which amounts to £344.20 every four-week pay period. For couples over State Pension age claiming Pension Credit where one person is on a disability benefit, the same £86.05 per week applies. Where both partners qualify, the payment doubles to £172.10 a week.
Those in receipt of Carer's Allowance or Carer Support Payment may receive an additional Pension Credit payment of £48.15. Older people may also qualify if they have an 'underlying entitlement' to Carer's Allowance or Carer Support Payment—meaning they are entitled but not receiving it, or receiving a lower amount, because they get a higher income-related benefit such as the State Pension.
Who Is Missing Out?
Nearly 1.4 million older people across Great Britain, including more than 125,000 in Scotland, currently receive Pension Credit. The DWP recently confirmed that Pension Credit could provide an average of £4,300 in support during the year ahead. However, latest figures suggest more than 700,000 eligible pensioners are not claiming the benefit they are entitled to.
Some older people mistakenly believe that having savings or owning their home disqualifies them from the means-tested benefit. In fact, Pension Credit can also provide access to help with housing costs, heating bills, and Council Tax.
How Pension Credit Works
Pension Credit tops up weekly income to a guaranteed minimum level of £238.00 for single pensioners or £363.25 for couples. It is a tax-free payment for those who have reached Pension Credit qualifying age (which is State Pension age) and live in Great Britain.
How to Check Eligibility
The quickest way to check eligibility and get an estimate is by using the online Pension Credit calculator on GOV.UK. Alternatively, pensioners can call the Pension Credit helpline on 0800 99 1234 (open 8am to 6pm, Monday to Friday). Expert help is also available from Independent Age, Income Max, Citizen's Advice, and Age UK.
Other Help You Can Get
If you qualify for Pension Credit, you may also be eligible for Housing Benefit (if you rent), Support for Mortgage Interest (if you own your home), Council Tax discount, a free TV licence if you are aged 75 or over, help with NHS dental treatment, glasses, and transport costs for hospital appointments, help with heating costs through the Warm Home Discount Scheme, and a discount on the Royal Mail redirection service if you are moving house.
Mixed Age Couples
Since May 2019, a 'mixed age couple'—where one partner is of State Pension age and the other is under it—are considered a 'working age' couple for means-tested benefits. This means they cannot claim Pension Credit or pension age Housing Benefit until both reach State Pension age.
Using the Pension Credit Calculator
To use the calculator, you will need details of your earnings, benefits, pensions, savings, and investments. You will also need the same details for your partner if you have one. The calculator asks for your date of birth, residential status, where in the UK you live, whether you are registered blind, which benefits you receive and how much, whether someone is paid Carer's Allowance to look after you, pension income, employment earnings, and savings or investments.
Once you submit your answers, the calculator shows how much benefit you could receive each week. You can then follow a link to the application page. There is also an option to print your answers to help complete the application form faster.
Who Cannot Use the Calculator?
You cannot use the calculator if you or your partner are deferring your State Pension, own more than one property, are self-employed, or have housing costs that 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 reaching State Pension age. Claims can be backdated for up to three months. You will need your National Insurance number, information about your income, savings, and investments, and your bank account details. If backdating, you will need 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 there are no children or young people included in your claim. Alternatively, phone the Pension Credit helpline on 0800 99 1234.
