Pension payments are set to receive an uprate (Image: Getty Images)
Millions of Britons could be in line for a significant boost to their State Pension payments, with letters set to land on doormats soon. The Department for Work and Pensions (DWP) has unveiled new data showing that 13 million people are currently claiming the State Pension.
Of these, 34 per cent are on the New State Pension (post-April 2016), while the remaining 66 per cent receive the Basic (or Old) State Pension (pre-April 2016). Both the New and Basic State Pensions are set to rise by 4.1 per cent in April, in line with the earnings growth measure of the Triple Lock.
However, additional elements, along with working age and disability benefits, will see an increase of 1.7 per cent, reflecting the September Consumer Price Index (CPI) inflation rate. Ahead of the payment hike on April 7, every pensioner will receive a letter from the DWP, typically landing before the end of March, reports the Daily Record.
It’s vital that recipients scrutinise this letter to ensure the accuracy of their forthcoming payments. An accompanying leaflet could potentially bolster annual income by an average of £4,200.
Each year, the DWP includes information about claiming Pension Credit alongside the uprating, ensuring all pensioners receive direct advice on this means-tested benefit and are urged to check their entitlement.
Pension Credit, the most under-claimed benefit in the UK, is intended to provide extra financial aid for older individuals on a low income, whether they are single or part of a couple. At present, nearly 1.4 million elderly people across Great Britain are beneficiaries of this means-tested benefit.
READ MORE Brits working in 2006 issued major update as vital HMRC deadline extended
A common misunderstanding among the elderly is that having savings or owning property disqualifies them from receiving this means-tested benefit. However, it can also help with housing expenses, heating bills, and Council Tax.
Even a modest award of just £1 per week can lead to additional support. Here’s a quick rundown of the benefit, including who should check their eligibility, how to do so, potential amounts you could receive, and where to seek assistance with the application process.
Who is eligible for Pension Credit?
Pension Credit is available in two forms – Guarantee Credit and Savings Credit. To qualify for Guarantee Pension Credit, you must have reached State Pension age (66), and your weekly income must be below the minimum amount the UK Government considers necessary for living costs.
The weekly amount is £218.15 for a single person and £332.95 for a couple, with potential increases if you’re disabled, a carer or have specific housing costs. Eligibility for Savings Credit depends on certain conditions.
The Department for Work and Pensions (DWP) could provide a financial boost to your weekly income through Guarantee Credit. The exact sum you’ll receive hinges on your income and savings, including any assumed income from savings and capital exceeding £10,000.
To determine eligibility for Pension Credit, older individuals or their loved ones can utilise the online Pension Credit calculator available on GOV.UK. Alternatively, pensioners can reach out directly to the Pension Credit helpline on 0800 99 1234 – lines are open from 8am to 6pm, Monday to Friday. Expert advice is also accessible from various sources.
More details about claiming Pension Credit can be found on GOV.UK.
Using the Pension Credit calculator
To make use of the Pension Credit calculator, you’ll need specific information about your earnings, benefits, pensions, savings, and investments. If you have a partner, their details will also be needed.
You’ll be presented with a series of multiple-choice questions. Once these have been answered, a summary screen will display your responses, allowing you to review and amend any answers before submission.
The Pension Credit calculator will then disclose how much benefit you could potentially receive each week.
The next step is to simply click on the link to the application page to find out exactly what you will receive from the DWP, including access to other financial support. There’s also an option to print off the answers you provide using the calculator tool to speed up the application process without having to search for the same details again.
Try the Pension Credit Calculator for yourself or a family member to ensure you’re claiming all the financial support you’re entitled to. However, the Pension Credit calculator cannot be used if you or your partner are deferring your State Pension, own more than one property, or are self-employed.
If you have housing costs such as service charges or Crown Tenant rent that are neither mortgage repayments nor rent covered by Housing Benefit, you may be eligible for assistance.
Making a claim
To make a claim, you can start your application up to four months before you reach State Pension age. You can claim any time after you reach State Pension age but your claim can only be backdated for three months.
This means you could receive up to three months of Pension Credit in your first payment if you were eligible during that period. You will need your National Insurance number, information about your income, savings and investments, and your bank account details if you’re applying by phone or by post.
If you’re backdating your claim, you’ll need details of your income, savings and investments on the date you want your claim to start.
If you have already claimed your State Pension and there are no children or young people included in your claim, you can apply online. To verify your entitlement, ring the Pension Credit helpline on 0800 99 1234 or utilise the Pension Credit calculator to determine how much you could potentially receive.
