Pensioners living alone could boost their income by more than £4,000 a year by claiming an often-overlooked DWP benefit. Pension Credit is designed to provide extra financial help to people over State Pension age who are on a low income.
Nearly 1.4 million older people across Great Britain currently receive the means-tested benefit, but others could be missing out simply because they do not realise they qualify. This could be particularly important for people living alone. Figures from the Office for National Statistics previously showed that 3.3 million people aged 65 and over were living alone in England and Wales.
How much could you get?
Pension Credit's Guarantee Credit element can top up a single person's weekly income to £238. For couples, the equivalent figure is £363.25 a week. Some people can receive more if they are a carer, have a disability or face certain housing costs.
Savings Credit, which is only available to people who reached State Pension age before April 6, 2016, can provide up to an additional £17.96 a week for a single person or £20.10 a week for a couple. How much someone receives will depend on their individual circumstances, including their income and savings.
Savings and extra support
Having savings does not necessarily prevent someone from qualifying. There is no fixed savings cut-off for Pension Credit, although savings and investments above £10,000 are taken into account when entitlement is calculated.
Even a small Pension Credit award can be valuable because receiving the benefit can open the door to other financial support. Depending on their circumstances, claimants could qualify for help with Council Tax, housing costs and NHS dental treatment, as well as the Warm Home Discount. Those aged 75 or over who receive Pension Credit may also qualify for a free TV licence.
Processing times and how to claim
The DWP recently confirmed that nearly 78% of new Pension Credit applications are processed within its target of 50 working days. That means someone submitting a successful claim during August could potentially receive their first payment and any money owed in arrears by the end of October.
Pensioners can check how much they might be entitled to using the Pension Credit calculator on GOV.UK or contact the Pension Credit claim line for help with an application.
