More than 1.4 million older people across Great Britain currently receive Pension Credit, a means-tested benefit that provides an average of £4,300 each year in additional financial support for those aged over 66 on a low income. The benefit can also unlock access to Council Tax discounts and assistance with heating bills, including the Warm Home Discount Scheme. However, many claimants may be unaware that they must notify the Department for Work and Pensions (DWP) if they plan to travel outside mainland Britain this year, regardless of the trip's duration, according to the Daily Record.
DWP Guidance on Travel
Guidance on GOV.UK states this applies to Pension Credit claimants "leaving England, Scotland and Wales for any period (for example, going on holiday)." It continues: "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 if there is a change to how your care home fees are funded, if you were staying temporarily and become a permanent resident, if you move to another care home, or if you go into hospital.
Changes to Financial Circumstances
You also need to report if your income or expenses change. This includes changes to:
- Housing costs, e.g., ground rent or service charges
- Benefits that anyone living in your home gets, including starting or stopping a benefit
- Occupational or personal pensions, including starting a new pension or taking a lump sum
- Other income, e.g., foreign pensions
- Savings, investments or property
The DWP urges anyone uncertain whether they need to report a change to call the Pension Credit helpline on 0800 99 1234. However, the DWP also 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."
Claimant Awareness
According to the latest DWP figures, more than 700,000 eligible individuals are not claiming Pension Credit despite being entitled to it. Some older people mistakenly believe that having savings or owning their home would disqualify them. However, an award of just £1 per week is sufficient to unlock other support.
Pension Credit Overview
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 are single, or £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, such as Carer's Allowance. Not counted as income are 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.
Savings
If you have £10,000 or less in savings and investments, this will not affect your Pension Credit. If you have more than £10,000, every £500 over £10,000 counts as £1 income a week. For example, if you have £11,000 in savings, this counts as £2 income a week.
Eligibility Check
Older people, or their friends and family, can swiftly assess eligibility and obtain an estimate of potential entitlements using the online Pension Credit calculator on GOV.UK. Alternatively, pensioners can call the Pension Credit helpline on 0800 99 1234 (8am to 6pm, Monday to Friday). Expert help is also available from Independent Age, Income Max, Citizens Advice, and Age UK.
Other Help if You Get Pension Credit
If you qualify, you can also get other help, such as Housing Benefit (if you rent), Support for Mortgage Interest (if you own), Council Tax discount, free TV licence if 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 moving house.
Mixed Age Couples
Since May 2019, a 'mixed age couple' (one partner of State Pension age, the other under it) are considered a working-age couple for means-tested benefits. They cannot claim Pension Credit or pension age Housing Benefit until both reach State Pension age.
How to Use the Pension Credit Calculator
To use the calculator, you will need details of earnings, benefits, pensions, savings, and investments (and the same for your partner if applicable). You will answer questions about your date of birth, residential status, location in the UK, whether registered blind, benefits received, weekly amounts, whether someone gets Carer's Allowance for you, pension amounts, employment earnings, and savings. After answering, a summary screen allows you to review and change answers before submitting. The calculator then displays how much benefit you could receive each week, with a link to the application page. There is also an option to print the 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. You can claim any time after, but your claim can only be backdated three months. You will need your National Insurance number, information about income, savings, and investments, and bank account details if applying by phone or post. If backdating, you need details from the date you want the 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. To check entitlement, call the Pension Credit helpline on 0800 99 1234 or use the GOV.UK calculator.
