The Department for Work and Pensions (DWP) has confirmed a significant rise in the number of people claiming Pension Credit over the past year. In a recent social media update, the DWP revealed that it received 105,100 more applications for Pension Credit compared to the same period last year.
Furthermore, nearly 1.4 million individuals nationwide are currently benefiting from this means-tested support. Contrary to popular belief, having savings or owning property does not disqualify someone from receiving Pension Credit.
This benefit can help cover housing costs, heating bills, Council Tax, provide a free TV licence, among other things. Even a modest award of just £1 per week can lead to additional assistance.
Who can claim Pension Credit?
Pension Credit is available in two forms: Guarantee Credit and Savings Credit. To qualify for Guarantee Pension Credit, you must have reached the State Pension age (66), and your weekly income must be below the UK Government’s minimum living standard – £218.15 for a single person and £332.95 for a couple.
These figures could be higher if you’re disabled, a carer, or have certain housing costs. If you’re a carer, disabled, or have specific housing costs, you might be eligible for more than the standard amount.
Savings Credit can offer up to a certain sum, with the exact amount depending on your income and savings, including assumed income from savings and capital over £10,000.
Who is eligible?
Those who are eligible for Pension Credit can check their eligibility using the government’s Pension Credit calculator, which can be found here. To use the calculator, you’ll need to provide information about yourself and your partner, if you have one:
- Whether you are registered blind
- Any savings, investments or bonds you have
- Your residential status
- Any employment earnings
- How much you receive each week for any benefits you get
- Whether someone is paid Carer’s Allowance to look after you
- Your date of birth
- Which benefits you currently receive
- Where in the UK you live
- How much you get each week from pensions – State Pension, private and work pensions
After answering these questions, a summary screen will show your responses, allowing you to review and change any answers before submitting.
How to apply for Pension Credit
The Pension Credit calculator will then tell you how much you could receive each week. As for applying for Pension Credit, you can start the process within the four months leading up to your State Pension age and at any time afterwards – in this case, your claim could be backdated by up to three months.
You will also need certain information readily available before starting the application process:
- Information regarding income, savings, and investments you may have as well as this information dating back to up to three months if you’re backdating the claim.
- Your National Insurance Number
- Your bank details
Applications can be made online through GOV.UK. If you prefer, you can apply by post by printing out and filling in the Pension Credit claim form and sending it to the DWP Pension Service or call the claim line to request a form.
Comprehensive information about the application process can be found here.
