More than 1.4 million people claim Pension Credit, which can boost someone’s income by an average of £4,200 per year. There are strict rules to claiming the benefit, and certain circumstances, such as leaving the country, may impact payments.
The reason for leaving and the length of the trip are all factors that influence the decision the Department for Work and Pensions (DWP) makes when – and if – it needs to adapt payments, so being aware of the rules is important. Guidance on GOV.UK states that people should tell the DWP “if you’re going to leave Great Britain for any reason at all, even if you’ll only be away for a short time. This includes if you go to Northern Ireland, the Isle of Man or the Channel Islands”.
The rest of the guidance reads: “We may pay Pension Credit for up to four weeks while you’re temporarily away from Great Britain, and we may pay for up to eight weeks if the absence is in connection with a death.
“If the absence is solely in connection with medical treatment or medically approved convalescence, we may pay Pension Credit for up to 26 weeks. But you should tell us before you go if you’re going to leave Great Britain for any reason at all, even if you’ll only be away for a short time.”
Who is eligible for Pension Credit?
While a recent Government awareness campaign has encouraged more than 150,000 pensioners to sign up for Pnesion Credit since July, as many as 700,000 eligible retirees could still be missing out.
The benefit aims to top up low-income pensioners’ state pension to give them a more reasonable standard of living. Claiming the benefit unlocks several other means of financial support, such as a free TV licence, council tax reduction, and the Winter Fuel Payment.
To claim, a person must live in England, Scotland or Wales and have reached the state pension age (currently 66 and over). They or their partner must also be receiving housing benefits.
If this applies, the person must then work out their total weekly income. This should include the state pension, other pensions, earnings from employment and self-employment, and most social security benefits, such as Carer’s Allowance.
Not all benefits are counted as income. For example, the following are not counted and shouldn’t be included in the calculation:
- Adult Disability Payment
- Attendance Allowance
- Christmas Bonus
- Child Benefit
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Social fund payments, such as the Winter Fuel Allowance
- Housing Benefit
- Council Tax Reduction.
People are most likely to be eligible if their total weekly income is roughly under £220.
However, if their income is higher, they might still be eligible so it’s worth checking the Government Pension Credit calculator just in case.
To apply for the benefit, people can reach the helpline by telephone on 0800 99 1234 or by textphone on 0800 169 0133. They can also apply online here.
Pensions Minister Emma Reynolds said: “We know 90% of new customers apply using our simple online form or over the phone. So I would urge everyone to check for their own eligibility or assist family members to apply online or pick up the phone today.
“The online process takes on average 16 minutes so I would encourage people to apply for Pension Credit, worth around £4,200 a year.”
