State pensioners on a higher income can still receive an average of £3,900 a year from Pension Credit, a Department for Work and Pensions (DWP) benefit typically aimed at those on low incomes. While Pension Credit also qualifies recipients for a £300 Winter Fuel Payment, the benefit can be worth as much as £11,000 or more in a single year for some pensioners.
Who can claim despite higher income?
Normally, Pension Credit is only available to those with a weekly income of £238 or less, or £363.25 a week for couples. However, not all types of income are counted in the assessment, meaning pensioners can earn more than the threshold and still be eligible.
Income that is taken into account includes paid work, savings interest, second property income such as rent, and stocks and shares interest. But certain benefits are excluded from the calculation.
Extra additions for carers and disabled
Those with a disability, who are carers, or who have housing costs may still be able to claim Pension Credit even if they have income from these sources. Sarah Pennells, Consumer Finance Specialist at Royal London, explained some of the extra amounts available.
“If you care for someone, you may be entitled to £45.60 a week as an extra amount. It’s called the Carer Addition. If you have a disability, there’s the Severe Disability Addition that you may be entitled to, which is worth £81.50 a week. If you’re responsible for a child or young person under the age of 20, you could get an extra £66.29 a week,” she said.
Benefits not counted as income
The DWP says certain benefits do not count as income when assessing a claim, meaning pensioners can still claim if they receive money from these categories. These include Adult Disability Payment, Attendance Allowance, 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.
Pennells added: “If you receive benefits as part of your income, some benefits, such as Attendance Allowance or Personal Independence Payment, aren’t taken into account when your income is being assessed.”
