Pensioners living on their own could boost their annual income by up to £4,500 by claiming Pension Credit, a benefit that can be backdated by up to three months and unlocks access to other financial support.
The Department for Work and Pensions (DWP) recently confirmed that nearly 78 per cent of all new Pension Credit claims are processed within the target timeframe of 50 working days (10 weeks). This means older people on a low income making a new claim in November, especially those living alone, could receive their first payment and any arrears by mid-January.
Who Is Eligible for Pension Credit?
Pension Credit is the most under-claimed benefit, aimed at providing additional financial support for older people on a low income, both singles and couples. Nearly 1.4 million older people across Great Britain, including more than 125,000 in Scotland, currently receive the means-tested benefit.
To qualify for Guarantee Credit, you must be of State Pension age, with weekly income below 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, though the amount could be higher if you are disabled, a carer, or have certain housing costs.
How Much Could You Receive?
Guarantee Credit tops up weekly income to £238.00 for a single person and £363.25 for a couple (married, in a civil partnership, or cohabiting). Savings Credit can give up to £17.96 a week for a single person and £20.10 a week for a couple. The exact amount depends on income and savings, including assumed income from savings and capital over £10,000.
An award of just £1 per week is enough to unlock other support, such as Housing Benefit, Council Tax discount, a free TV licence for those aged 75 or over, help with NHS dental treatment and glasses, and heating cost support through the Warm Home Discount Scheme.
How to Check Eligibility and Claim
Older people, or friends and family, can check eligibility and get an estimate using the online Pension Credit calculator on GOV.UK. Alternatively, pensioners 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.
Claims can be backdated by 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. You can start your application up to four months before reaching State Pension age. You will need your National Insurance number, information about income, savings, and investments, and bank account details if applying by phone or post.
Some people cannot use the calculator if they or their partner are deferring State Pension, own more than one property, are self-employed, or have certain housing costs. The online service is available if you have already claimed your State Pension and there are no children or young people included in your claim.
