Nearly 78 per cent of new Pension Credit claims are processed within the target timeframe of 50 working days, according to the Department for Work and Pensions (DWP). This means older people on a low income who make a new claim before the end of this month could receive their first payment and any arrears before September.
It is crucial for all older people—single, married or cohabiting—to ensure they are claiming all the additional financial support they are entitled to this year to boost their income and offset the ongoing higher cost of living.
Who Can Claim Pension Credit?
There are two types of Pension Credit: Guarantee Credit and Savings Credit. To qualify for Guarantee Credit, you must have reached State Pension age and your weekly income must be less than the minimum amount the UK Government says you need to live on. This is £238.00 for a single person and £363.25 for a couple—this amount could be higher if you are disabled, a carer, or have certain housing costs.
Savings Credit can give you up to £17.96 a week for a single person or £20.00 a week for a couple. The exact amount depends on your income and savings, including assumed income from savings and capital over £10,000.
How Much Could You Receive?
Guarantee Credit tops up your weekly income to £238.00 for a single person or £363.25 for a couple. You might get more if you are disabled or a carer, or have certain housing costs. Nearly 1.4 million older people across Great Britain, including more than 125,000 in Scotland, currently receive Pension Credit, which could provide over £4,300 in extra support during the year ahead.
Other Help Unlocked by Pension Credit
If you qualify for Pension Credit, you can also access other help, such as Housing Benefit if you rent, Support for Mortgage Interest if you own your home, a 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 and Pension Credit
In May 2019, the law changed so that 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.
How to Check Eligibility and Apply
Older people can check their eligibility and get an estimate using the online Pension Credit calculator on GOV.UK. Alternatively, they can contact 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, Citizens Advice, and Age UK.
To use the calculator, you will need details of earnings, benefits, pensions, savings, and investments. You can start your application up to four months before reaching State Pension age. Claims can be backdated for up to three months, meaning you could get up to three months of Pension Credit in your first payment if you were eligible during that time.
