Low-income pensioners receiving disability benefits such as Attendance Allowance, or the middle or highest rate of the care component for Disability Living Allowance (DLA), Personal Independence Payment (PIP) or Adult Disability Payment (ADP), may be entitled to extra Pension Credit, according to online guidance from the Department for Work and Pensions (DWP).
This also includes older people in Scotland claiming Pension Age Disability Payment (PADP), the devolved benefit that has replaced Attendance Allowance north of the border. The disability element of Pension Credit is worth £86.05 a week to single pensioners, which amounts to £344.20 every four-week pay period.
How much extra could you get?
Similarly, a couple over State Pension age claiming Pension Credit where one person is claiming a disability benefit will also receive £86.05 a week. Where both partners qualify for Pension Credit, this payment is worth £172.10 a week.
Someone in receipt of Carer's Allowance or Carer Support Payment will get an additional Pension Credit payment of £48.15. Older people may also get this extra Pension Credit if they are entitled to Carer's Allowance or Carer Support Payment but are not being paid it, or are being paid it at a lower amount than normal, because they are receiving a higher amount from another income-related benefit such as the State Pension – more commonly referred to as an 'underlying entitlement'.
Who is claiming Pension Credit?
Nearly 1.4 million older people across Great Britain, including more than 125,000 living in Scotland, are currently receiving Pension Credit, which the DWP recently confirmed could provide an average of £4,300 in support during the year ahead. However, the latest figures from the DWP suggest there are still more than 700,000 eligible pensioners not claiming the benefit they are entitled to.
Some older people think because they have savings or own their home they would not be eligible for the means-tested benefit, which can also provide access to help with housing costs, heating bills and Council Tax. Pension Credit tops up weekly income to a guaranteed minimum level of £238.00 a week for single pensioners or £363.25 for couples.
How to check eligibility
It is a tax-free payment for those who have reached Pension Credit qualifying age, which is State Pension age, and live in Great Britain. Older people, or friends and family, can quickly check their eligibility and get an estimate of what they may receive by using the online Pension Credit calculator on GOV.UK.
Alternatively, pensioners can contact the Pension Credit helpline directly to make a claim on 0800 99 1234 – lines are currently open 8am to 6pm, Monday to Friday. Expert help and advice is also available from Independent Age, Income Max, Citizen's Advice and Age UK.
If you qualify for Pension Credit, you can also get other help, such as Housing Benefit if you rent the property you live in, Support for Mortgage Interest if you own the property, 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.
In May 2019, the law changed so a 'mixed age couple' – a couple where one partner is of State Pension age and the other is under it – are considered to be a 'working age' couple when checking entitlement to means-tested benefits. This means they cannot claim Pension Credit or pension age Housing Benefit until they are both State Pension age. Before this DWP change, a mixed age couple could be eligible to claim the more generous State Pension age benefits when just one of them reached State Pension age.
To use the calculator on GOV.UK, you will need details of earnings, benefits and pensions, and savings and investments, plus the same details for your partner if you have one. You will be presented with a series of questions with multiple choice answer options, covering your date of birth, residential status, where in the UK you live, whether you are registered blind, which benefits you currently receive, how much you receive each week for any benefits, whether someone is paid Carer's Allowance to look after you, how much you get each week from pensions – State Pension, private and work pensions – any employment earnings, and any savings, investments or bonds you have.
Once you have answered these questions, a summary screen shows your responses, allowing you to go back and change any answers before submitting. The Pension Credit calculator then displays how much benefit you could receive each week. All you have to do then is follow the link to the application page to find out exactly what you will get from the DWP, including access to other financial support. There's also an option to print off the answers you give using the calculator tool to help you complete the application form quicker without having to look out the same details again.
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 (such as service charges or Crown Tenant rent) which are neither mortgage repayments nor rent covered by Housing Benefit.
You can start your application up to four months before you reach State Pension age. You can claim any time after you reach State Pension age but your claim can only be backdated for three months. This means you can get up to three months of Pension Credit in your first payment if you were eligible during that time. You will need your National Insurance number, information about your income, savings and investments, and your bank account details if you're applying by phone or by post. If you're backdating your claim, you'll need details of your income, savings and investments on the date you want your claim to start. You can use the online service if you have already claimed your State Pension and there are no children or young people included in your claim. To check your entitlement, phone the Pension Credit helpline on 0800 99 1234 or use the GOV.UK Pension Credit calculator to find out how much you could get.
