Thousands of British pensioners could be entitled to a substantial income increase of up to £3,900 annually – but many remain unaware of this valuable benefit.
Who Qualifies for the Extra Payments?
The additional money is available through Pension Credit, a benefit designed to top up the income of retirees living on modest means. Those who reached state pension age before April 2016 and qualify for the 'old' state pension system may be particularly well-positioned to claim.
The £3,900 Income Boost Explained
Pension Credit can provide:
- Guarantee Credit topping up weekly income to £201.05 for singles or £306.85 for couples
- Savings Credit (for those who reached pension age before April 2016) worth up to £15.94 weekly for singles or £17.84 for couples
- Additional amounts for those with disabilities, caring responsibilities or certain housing costs
Why Thousands Are Missing Out
Despite the potential benefits, an estimated 880,000 eligible households currently fail to claim Pension Credit. Common misconceptions include:
- Believing they have too much in savings (many qualify despite modest assets)
- Assuming home ownership disqualifies them (it doesn't)
- Thinking the application process is too complicated (it takes about 20 minutes)
How to Claim Your Entitlement
Pension Credit applications can be made:
- Online via the government website
- By phone to the Pension Credit claim line
- Through paper forms available at local Jobcentres
Pro tip: Even if you're only slightly above the income threshold, you may qualify for Savings Credit if you reached pension age before April 2016.
