Hundreds of thousands of state pensioners may be able to boost their income by as much as £4,200 this year through Pension Credit.
While a recent Government awareness campaign has encouraged 150,000 pensioners to sign up for the benefit 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.
The full new State pension is currently worth £221.20 per week, while the basic state pension stands at £169.50 per week.
However, data from the Office for National Statistics (ONS) highlights in 2021, 3.3 million people aged 65 and over in England and Wales, along with 337,000 single pensioner households in Scotland, were living alone.
Single pensioners, who must cover all household expenses on a fixed income, are particularly vulnerable to financial strain.
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.”
Claiming Pension Credit can also unlock a number of other financial support mechanisms, such as a council tax discount and free TV licences.
Who is eligible for Pension Credit?
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 work out their 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 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.
