Single pensioners living alone could increase their income by more than £4,300 this year by claiming Pension Credit, a benefit that can be backdated by up to three months and unlocks access to other financial support. The Department for Work and Pensions (DWP) confirmed that nearly 78 per cent of new Pension Credit claims are processed within 50 working days, meaning those applying in July could receive their first payment and arrears before September.
Who Is Eligible for Pension Credit?
Pension Credit is a means-tested benefit for people who have reached State Pension age. It comes in two parts: Guarantee Credit and Savings Credit. To qualify for Guarantee Credit, your weekly income must be below £238.00 for a single person or £363.25 for a couple. This amount can be higher if you are disabled, a carer, or have certain housing costs. Savings Credit provides up to £17.96 a week for single people and £20.10 for couples.
Despite the full New State Pension being £241.30 per week and the Basic State Pension £184.90, data from the Office for National Statistics (ONS) shows that in 2021, 3.3 million people aged 65 and over lived alone in England and Wales, with 337,000 single pensioner households in Scotland. Many of these individuals may be missing out on Pension Credit.
How Much Could You Receive?
Pension Credit tops up your weekly income to £238.00 for a single person and £363.25 for a couple. Over the course of a year, this could provide over £4,300 in extra support. Even an award of just £1 per week can unlock other benefits, such as help with housing costs, heating bills, and Council Tax. Nearly 1.4 million older people across Great Britain, including more than 125,000 in Scotland, currently receive the benefit.
Some older people mistakenly believe that having savings or owning a home disqualifies them. However, eligibility depends on income and savings over £10,000 are taken into account as assumed income.
How to Check Eligibility
You can quickly check eligibility and get an estimate using the online Pension Credit calculator on GOV.UK. Alternatively, call the Pension Credit helpline at 0800 99 1234 (Monday to Friday, 8am to 6pm). Expert help is also available from Independent Age, Income Max, Citizens Advice, and Age UK.
To use the calculator, you will need details of your earnings, benefits, pensions, savings, and investments. 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 certain housing costs.
Additional Support Unlocked by Pension Credit
If you qualify for Pension Credit, you may also get 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 75 or over, help with NHS costs, and assistance with heating through the Warm Home Discount Scheme. There is also a discount on the Royal Mail redirection service if you move house.
Mixed-age couples—where one partner is State Pension age and the other is under it—are now treated as a working-age couple for means-tested benefits, so they cannot claim Pension Credit until both reach State Pension age. This change took effect in May 2019.
How to Make a Claim
You can apply up to four months before reaching State Pension age or any time after. Claims can be backdated three months, so you could receive 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.
Apply online if you have already claimed your State Pension and there are no children or young people included in your claim. For help, phone the Pension Credit helpline or use the GOV.UK calculator.
