More than 1.4 million elderly people across Great Britain are currently receiving an annual average of £4,300 in additional support via Pension Credit—a key benefit for those over 66 on a low income.
This means-tested benefit also unlocks Council Tax reductions and assistance with heating costs, embracing Winter Fuel Payments, the Pension Age Winter Heating Payment, and the Warm Home Discount Scheme.
However, claimants may not realise they need to inform the Department for Work and Pensions (DWP) if they plan to holiday outside mainland Britain for any duration this year.
GOV.UK guidelines advise informing DWP about any Great Britain departures for any reason, no matter how brief the absence, including trips to Northern Ireland, the Isle of Man or the Channel Islands, reports the Daily Record.
The advice answers the query: “Can I leave Great Britain and keep getting Pension Credit?”
The DWP states: “We may pay Pension Credit for up to 4 weeks while you’re temporarily away from Great Britain and we may pay for up to 8 weeks if the absence is in connection with a death.”
Additionally, the DWP note reads: “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. This includes if you go to Northern Ireland, the Isle of Man or the Channel Islands.”
Full details on how to report a change in circumstance can be found on GOV.UK here.
The latest figures from the DWP suggest there are around 760,000 eligible people not claiming Pension Credit, even though they could be entitled to it.
Some older people think because they have savings or own their home they would not be eligible for the means-tested benefit. However, an award of just £1 per week is enough to unlock other support.
Below is an overview of the benefit including who should check eligibility, how to go about it, how much you could get and where to get help filling in the form.
Who is eligible for Pension Credit?
Pension Credit comes in two varieties: Guarantee Credit and Savings Credit. To be eligible for Guarantee Pension Credit, one must have reached State Pension age (66) and have a weekly income below the minimum level determined by the UK Government as necessary for subsistence.
For single pensioners, this amount is set at £227.10 weekly, while couples need to be earning under £346.60 – although these figures may increase for those with disabilities, caring responsibilities, or particular housing expenditures. Only those who reached State Pension age before 6 April 2016 and have made provisions for retirement, such as via a personal or workplace pension, are entitled to claim Savings Credit.
How much might one be able to gain from the DWP?
Guarantee Credit tops up your weekly income to:
- £227.10 for a single person
- £346.60 for a couple (married, in a civil partnership or cohabiting)
Additional benefits may be available if you’re disabled or a carer, or you have certain housing costs – find out more on GOV.UK here.
Savings Credit can provide you with up to:
- £17.30 a week for a single person
- £19.36 a week for a couple (married, in a civil partnership or cohabiting).
The exact amount you’ll receive depends on your income and savings. Your income includes assumed income from savings and capital over £10,000.
How to check eligibility for Pension Credit
Older individuals, or their friends and family, can quickly check their eligibility and get an estimate of what they may receive by using the online Pension Credit calculator on GOV.UK here. Alternatively, pensioners can contact the Pension Credit helpline directly to make a claim on 0800 99 1234 – lines are open 8am to 6pm, Monday to Friday.
More details about claiming Pension Credit can be fond on GOV.UK here.
Other help if you get Pension Credit
If you qualify for Pension Credit you can also get other help, such as:
- Housing Benefit if you rent the property you live in
- Support for Mortgage Interest if you own the property you live in
- Council Tax discount
- Free TV licence if you are aged 75 or over
- Help with NHS dental treatment, glasses and transport costs for hospital appointments
- Help with your heating costs through the Warm Home Discount Scheme, Pension Age Winter Heating Payment or Winter Fuel Payments
- A discount on the Royal Mail redirection service if you are moving house
Mixed aged older couples and Pension Credit
In May 2019, the law changed so a ‘mixed age couple’ – a couple where one partner is of State Pension age and the other is under it – are considered to be a ‘working age’ couple when checking entitlement to means-tested benefits.
This implies that they are unable to claim Pension Credit or pension age Housing Benefit until both of them reach the State Pension age. Prior to this change by the DWP, a mixed-age couple could be eligible to claim the more generous State Pension age benefits when just one of them reached the State Pension age.
Here’s how to use the Pension Credit calculator:
To use the calculator on GOV.UK, you will need details of:
- earnings, benefits and pensions
- savings and investments
You’ll need the same details for your partner if you have one. You will be presented by a series of questions with multiple choice answer options.
This includes:
- Your date of birth
- Your residential status
- Where in the UK you live
- Whether you are registered blind
- Which benefits you currently receive
- How much you receive each week for any benefits you get
- Whether someone is paid Carer’s Allowance to look after you
- How much you get each week from pensions – State Pension, private and work pensions
- Any employment earnings
- Any savings, investments or bonds you have
Once you’ve answered these questions, a summary screen will display your responses, allowing you to go back and amend any answers before submitting. The Pension Credit calculator will then show how much benefit you could receive each week.
All you need to do next is follow the link to the application page to find out exactly what you will get 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 help you complete the application form quicker without having to look out the same details again. Try the Pension Credit Calculator for yourself or a family member to ensure you’re receiving all the financial support you’re entitled to claim.
Who can’t use the Pension Credit calculator?
You or your partner cannot use the calculator if you are deferring your State Pension. If you own more than one property, are self-employed, or have housing costs (such as service charges or Crown Tenant rent) which are neither mortgage repayments nor rent covered by Housing Benefit, you may be eligible for certain benefits.
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 can receive up to three months of Pension Credit in your first payment if you were eligible during that time.
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.
You can apply online using the online service if you have already claimed your State Pension and there are no children or young people included in your claim. To check your entitlement, ring the Pension Credit helpline on 0800 99 1234 or use the GOV.UK Pension Credit calculator here to find out how much you could get.
