State pensioners on low incomes can claim Pension Credit worth £4,300 a year on average, under the system inherited by new Prime Minister Andy Burnham. The benefit is aimed at topping up weekly income for those below a certain threshold.
Eligibility and amounts
Single pensioners must have an income of less than about £238 per week, including savings, state pension, and other sources. Couples must have less than £363 per week. On average, claimants receive £4,300 a year.
Martin Lewis urges pensioners to check
Money expert Martin Lewis has urged pensioners to check online or call the Pension Credit hotline. He said: “Let’s make this really simple: if you’re a low income pensioner and you don’t get pension credit, just go online and do the calculator. Or if online scares you, just call up the pension credit hotline and just talk to someone. You will not be told off for asking if you’re due pension credit. If you’re not due pension credit, they’ll just tell you you’re not due it.”
Lewis noted that around £2.5 billion of Pension Credit is unclaimed by over 910,000 eligible pensioners.
Future under Burnham
Changes to Pension Credit are unlikely, but if made, would not be announced until the next Budget under new Chancellor John Healey in November and would not take effect until a future tax year. Given Burnham's comments on helping households with the cost of living, removing the benefit is unlikely.
Other benefits
Pension Credit is a gateway benefit that can unlock free TV Licence for over-75s, free dental care, Warm Home Discount worth £150 a year, Council Tax reduction, and Housing Benefit. Apply online via gov.uk or call 0800 99 1234.
