Married pensioners could be eligible for additional funds from the Department for Work and Pensions (DWP). Many may not realise they qualify for Pension Credit, a means-tested benefit on top of their State Pension.
Nearly 1.4 million older people across Great Britain currently receive Pension Credit, which provides an average of £4,300 in extra support over the coming year. However, the DWP estimates around 760,000 pensioners are entitled to this top-up but are not claiming it.
Who Qualifies for Pension Credit?
Married pensioners with a combined weekly income of less than £363.25, or single pensioners with an income below £238.00, may be eligible. The benefit boosts income up to that threshold. Even those with savings or a home may qualify, as an award of just £1 per week unlocks other support such as help with housing costs, heating bills, and Council Tax.
The DWP recently confirmed that nearly 78% of new Pension Credit claims are processed within 50 working days. This means older people on a low income submitting a claim now could receive their first payment and arrears by August.
What Counts as Income?
Income includes State Pension, other pensions, earnings from employment and self-employment, and most social security benefits like Carer's Allowance. However, certain benefits are not counted, such as Adult Disability Payment, Attendance Allowance, DWP 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.
Savings and Investments
If you have £10,000 or less in savings, it does not affect Pension Credit. For savings over £10,000, every £500 above counts as £1 income per week. For example, £11,000 in savings counts as £2 weekly income.
How to Check Eligibility
Use the online Pension Credit calculator on GOV.UK or 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.
Other Help with Pension Credit
Qualifying for Pension Credit can also provide access to Housing Benefit, Support for Mortgage Interest, Council Tax discount, free TV licence if aged 75 or over, help with NHS dental treatment, glasses, transport costs, heating costs through the Warm Home Discount Scheme, and a discount on Royal Mail redirection service.
Mixed Age Couples
Since May 2019, mixed age couples (one partner of State Pension age, the other under) are treated as a working age couple for means-tested benefits. They cannot claim Pension Credit until both reach State Pension age.
How to Use the Calculator
You will need details of earnings, benefits, pensions, savings, and investments for you and your partner. The calculator asks about date of birth, residential status, UK location, blindness registration, current benefits, weekly amounts, Carer's Allowance, pension income, employment earnings, and savings. After answering, a summary screen allows changes before submission. The calculator shows your potential weekly benefit, and you can apply online or print answers for faster application.
You cannot use the calculator if you or your partner are deferring State Pension, own more than one property, are self-employed, or have housing costs not covered by mortgage or Housing Benefit.
How to Make a Claim
Apply up to four months before reaching State Pension age. Claims can be backdated three months. You need your National Insurance number, income and savings details, and bank account details. Apply online if you have already claimed State Pension and no children are included. Otherwise, call the helpline.
