The Department for Work and Pensions (DWP) has 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 September, especially those living alone, could receive their first payment and any arrears before the end of November.
Who can claim Pension Credit?
Pension Credit is the most under-claimed benefit and is 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, which could provide over £4,300 in extra support during the year ahead.
There are two types of Pension Credit: Guarantee Credit and Savings Credit. To qualify for Guarantee Credit, you must be of State Pension age, and your weekly income must be less than 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 your weekly income to £238.00 for a single person and £363.25 for a couple (married, in a civil partnership, or cohabiting). You might get more if you are disabled, a carer, or have certain housing costs. Savings Credit can give you up to £17.96 a week for a single person and £20.10 a week for a couple, depending on your income and savings. Your income includes 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 if you rent, Support for Mortgage Interest if you own your home, a 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.
How to check eligibility and claim
Older people, or friends and family, can quickly check eligibility and get an estimate of what they may receive 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 and advice is also available from Independent Age, Income Max, Citizens Advice, and Age UK.
You can start your application up to four months before you reach State Pension age, and you can claim any time after, 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 applying by phone or post. If backdating, you will need details of your income, savings and investments on the date you want your claim to start.
In May 2019, the law changed so a 'mixed age couple' - where one partner is of State Pension age and the other is under it - are considered a 'working age' couple when checking entitlement to means-tested benefits. This means they cannot claim Pension Credit or pension age Housing Benefit until both are State Pension age.
