Pensioners who live alone could increase their annual income by as much as £4,500 through Pension Credit, a means-tested benefit that many eligible people fail to claim. The Department for Work and Pensions (DWP) has highlighted the scale of unclaimed support, with a report showing that in 2023-2024, 32% of potentially eligible households missed out on more than £50 per week in Pension Credit.
How Pension Credit works
Pension Credit is designed to help those over State Pension age on low incomes with living costs, providing a weekly top-up that raises income to a set minimum level, which varies according to individual circumstances. When applying, the DWP calculates income, with couples' income assessed together in a joint pot. The benefit can also help with housing costs such as ground rent or service charges, by factoring the home into the award calculation.
Following an inflation-linked uprating in April, the Standard Minimum Guarantee was increased to £238 for single claimants and £363.25 for couples. Incomes are measured against these thresholds, with the DWP making up the difference if income falls below them. Additional boosts are available depending on circumstances, including additions for carers, people with children, those with a severe disability meeting certain criteria, and extras for certain housing and accommodation costs.
Claim processing and awareness
A DWP report published on Friday, October 30, revealed that households in England, Scotland and Wales are not claiming thousands of pounds a year in Pension Credit they could be eligible for. The department recently confirmed that nearly 78% of all new claims are processed, from initial application to award decision letter, within the target timeframe of 50 working days, or 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. Applications by people who live alone are generally simpler to process, as the Government only has to ascertain the circumstances of one person.
Government push to increase uptake
The DWP says it saw an extra 33,500 awards last year following its biggest ever Pension Credit awareness campaign, and is urging eligible people to come forward. The Government states the benefit is worth more than £4,500 a year on average.
Minister for Pensions Torsten Bell said: "Far too many pensioners are missing out on support they’re entitled to. Pension Credit is worth more than £4,500 a year on average and can make a real difference to people’s finances, while also opening the door to help with bills and other everyday costs. If you think you might be eligible, it’s worth checking. We want to make sure pensioners get the support they’re entitled to and don’t miss out on money that could help them in retirement."
Further details on Pension Credit rules and entitlement are available on the GOV.UK website.
