According to the Department for Work and Pensions' estimates around 880,000 pensioner households may be eligible for a £3,900 income boost, but do not claim Pension Credit as they wrongly believe that since they have savings or are homeowners they would not qualify for the income-related benefit.
Nevertheless, receiving an award of just one pound per week can qualify someone for additional support and discounts to assist with expenses including housing costs, heating bills and Council Tax.
State Pensioners Eligible for Significant Income Boost with Pension Credit
Pension Credit can boost the income of single people on the New State Pension whose total weekly income is below £218.15. It can also increase the incomes of couples whose joint weekly income is less than £332.95. In the same way, people over 65 who attained State Pension age before April 6, 2016, can still get Pension Credit if their weekly income is below £260.68 if single, or £380.55 if married or in a civil union.
Currently, 1.4 million individuals receive extra financial support through Pension Credit, including more than 126, 900 residing in Scotland.
Factors Hindering State Pensioners from Claiming Pension Credit
The DWP has shared the main reasons that make state pensioners think they do not qualify for Pension Credit.
State pensioners may assume they are ineligible because due to:
- Having savings
- Being homeowners
- Working
- Receiving a modest occupational pension
- Being turned down in the past
- Not wanting to be seen as needing to claim
- Feeing that they’re able to manage
- Think it’s not worth applying since the amount they receive will be very small
- Not recognising themselves as Pension Credit claimants
- Thinking it’s a confusing and complex subject
- Already getting other benefits and not wanting to mess up what they are receiving
Summer months offer a perfect chance to take a moment and check if you, or someone you know, might qualify for Pension Credit. Moreover, the DWP has recently confirmed that 78% of Pension Credit claims are typically processed within fifty working days, meaning that a new application submitted this month could be finalized before September's end.
It’s worth noting that people can backdate their Pension Credit claims by up to three months, and any overdue amounts would be settled with the initial payment.
How to Quickly Check Eligibility for Pension Credit
You can quickly check if you're eligible for Pension Credit and get an estimate of what you may receive by using the online Pension Credit calculator available on the GOV.UK website
Conversely, pensioners can reach out to the Pension Credit helpline directly to submit a claim on 0800 99 1234 — lines are available from 8am to 6pm, Monday to Friday. The Department for Work and Pensions has also provided a new YouTube video which offers detailed instructions on how to use the online calculator.