Around 1.3 million pensioner households, who are on particularly low incomes, are to get a cash boost worth £310 a year.
This boost relates to changes in Pension Credit, which is designed to provide what the government sets as the minimum level of income required to live on.
Pension Credit tops up a pensioner household’s income to this minimum figure, which is rising from £201.05 a week to £218.15 for a single person. The Pension Credit figure for a couple is rising from £306.85 a week to £332.95 – an increase of £26.10.
Many pensioners are already close to the new minimum income figure that qualifies for Pension Credit so they will only receive part of the weekly increase.
As a result, the Department for Work and Pensions said: “Around 1.3 million pensioner households in receipt of Pension Credit will benefit from an average annual increase of £310 in their Pension Credit award.”
Are you eligible for Pension Credit?
* You must live in England, Scotland or Wales and have reached State Pension age. Northern Ireland has its own system.
* You must include your partner on your application.
* Your income is below £218.15 a week for a single person or £332.95 for a couple.
* If your income is higher, you might still be eligible for Pension Credit if you have a disability, you care for someone, you have savings or you have housing costs.
* Income includes: State Pension, other pensions, earnings from employment and self-employment, most social security benefits, for example Carer’s Allowance.
* Income does not include: Adult Disability Payment, Attendance Allowance, Christmas Bonus
Child Benefit, Disability Living Allowance, Personal Independence Payment, social social fund payments like Winter Fuel Allowance, Housing Benefit and Council Tax Reduction.
* If you have £10,000 or less in savings and investments this will not affect your Pension Credit. If you have more than £10,000, every £500 over £10,000 counts as £1 income a week. For example, if you have £11,000 in savings, this counts as £2 income a week.
More information can be found here.
