The Department for Work and Pensions (DWP) has announced that nearly 78% of all new Pension Credit applications are now being processed within the target period of 50 working days, or 10 weeks. This efficient handling means that older people on low incomes who apply this month could receive their first payment, along with any backdated arrears, by the middle of February.
Who Can Claim Pension Credit?
Pension Credit is a vital, means-tested benefit designed to top up the income of pensioners who are struggling financially. It is available to both single people and couples who have reached State Pension age, which is currently 66. Despite the full New State Pension being £230.25 per week, and the Basic State Pension £176.45, many still live on a low income.
Official data from the Office for National Statistics (ONS) shows that in 2021, approximately 3.3 million people aged 65 and over in England and Wales were living alone. As the UK faces cold winter weather and high energy bills, it is crucial for every eligible pensioner to claim all the financial support available to help with the ongoing cost of living crisis.
Understanding the Two Parts of Pension Credit
Pension Credit consists of two main elements: Guarantee Credit and Savings Credit. To qualify for the Guarantee Credit, your weekly income must be below a specific threshold. For a single person, this is £227.10 per week, and for a couple, it is £346.60. These amounts can be higher if you have a disability, are a carer, or have certain housing costs.
The Savings Credit element is only available to those who reached State Pension age before 6 April 2016. To be eligible, a single person must have a qualifying income of at least £198.27 per week, while a couple needs £314.34.
It is a common misconception that having savings or owning your home automatically disqualifies you. This is often not the case, and even a small award of £1 per week can act as a gateway to a significant package of extra help.
Extra Perks and How to Apply
Currently, around 1.4 million pensioners across the UK receive Pension Credit, which can provide an average of £4,300 in additional financial support. A successful claim can also unlock a host of other valuable benefits, including:
- Help with rent via Housing Benefit
- Support with NHS dental treatment, glasses, and hospital travel costs
- Eligibility for Cold Weather Payments and the Winter Fuel Payment
- Council Tax reductions of up to 100%
- A free TV licence for those aged 75 and over
- Assistance with mortgage interest and service charges
Checking your eligibility is straightforward. You can use the online Pension Credit calculator on the GOV.UK website. Alternatively, you or a family member can call the Pension Credit claim line on 0800 99 1234 (Monday to Friday, 8am to 6pm). Claims can be made online, by phone, or using a paper form.
With the DWP processing the majority of claims swiftly, there has never been a more important time for pensioners, especially those living alone, to ensure they are not missing out on this essential financial lifeline.
