The Department for Work and Pensions (DWP) has launched a new campaign to encourage eligible pensioners to claim Pension Credit, which is worth more than £4,500 a year on average. Leaflets are being posted to 660,000 homes in seven areas across the UK, targeting regions with a high proportion of low-income pensioners.
Figures show around 1.4 million pensioner households are already benefiting from Pension Credit. Last year, the DWP saw an extra 33,500 applications following its biggest ever Pension Credit awareness campaign.
Who is being targeted?
Leaflets will be delivered to homes in Glasgow, Powys, Stockton-on-Tees, inland Cornwall, Birmingham, East Suffolk and Manchester. The DWP says these areas have a high proportion of low-income pensioners.
Finance experts are advising people not to assume they won't qualify, as some may think they are ineligible because of savings or owning their own home. The call to check comes after Independent Age's analysis found that more than a million eligible older people missed out on a combined £2.5 billion in 2023/24.
Owning a home or having savings does not automatically rule you out
Joe Lytwyn, Personal Finance Expert at thimbl.com, is encouraging pensioners and their families to check their individual circumstances. He says: “DWP has launched a new awareness campaign, highlighting that Pension Credit is worth more than £4,500 a year on average. That is not a guaranteed payment, as individual entitlement depends on someone's circumstances.”
“Owning your home or having savings does not automatically rule you out, and Pension Credit is separate from the State Pension,” he adds. “Savings and investments of £10,000 or less do not affect Pension Credit. Above that amount, savings are taken into account, but you may still qualify. Your State Pension and other pension income generally count towards the assessment. The important thing is to check your individual circumstances rather than assume you are ineligible.”
Even a small award could open the door to further help
Receiving Pension Credit could also unlock other support, depending on individual circumstances. Joe said: “Depending on your circumstances, receiving Pension Credit could also open the door to help with housing costs, Council Tax, and heating bills.”
“People aged 75 or over may qualify for a free TV licence, while those receiving the Guarantee Credit element of Pension Credit may qualify for help with NHS dental treatment and glasses. Each scheme has its own conditions, but even a small Pension Credit award could be worth checking.”
Claims can be backdated by up to three months
For pensioners and families looking to check eligibility, Joe said: “Start with the official eligibility guidance and Pension Credit calculator. A trusted family member could help gather details of income, pensions, savings and investments. Applications can be made online, by telephone or by post. The claim line is 0800 99 1234, Monday to Friday, 8am to 6pm.”
While hundreds of thousands of homes are being sent leaflets, the advice is not just for people living in those areas. Pension Credit is available to all those on a low income who meet the criteria, live in England, Scotland or Wales and have reached State Pension age.
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 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 for Pension Credit if you have a disability, you care for someone, you have savings or you have housing costs.
While State Pension, other pensions, earnings and most social security benefits do count towards income, some are not included, such as Adult Disability Payment, Attendance Allowance, Child Benefit, Christmas Bonus, Council Tax Reduction, Disability Living Allowance, Housing Benefit, Pension Age Disability Payment, Personal Independence Payment, Scottish Adult Disability Living Allowance, and social fund payments like Winter Fuel Payment.
The expert recommends people should check to see if they meet the criteria. Joe adds: “You do not need to wait for a campaign leaflet. Claims can be backdated by up to three months if you were eligible during that period, so checking promptly could help prevent missed payments.”
