The Department for Work and Pensions (DWP) has announced that older people receiving Attendance Allowance may also be eligible for Pension Credit, a benefit designed to support those on a low income. Pensioners who apply and are approved before December 21, 2024, could also receive the Winter Fuel Payment, which provides between £100 and £300.
Pension Credit and Winter Fuel Payments
Pensions Minister Emma Reynolds clarified in a written response to Labour MP Sarah Champion that pensioners on Attendance Allowance and with limited incomes could be eligible for Pension Credit, provided all criteria are met. She emphasized that low-income pensioners receiving Attendance Allowance may receive extra financial support through Pension Credit.
Reynolds further explained that Attendance Allowance is determined by a person's ongoing need for personal care or supervision rather than a specific medical condition. This benefit is non-contributory, tax-free, and unaffected by other income or savings. Winter Fuel Payments will continue for households where someone receives Pension Credit or other income-related benefits, offering £200 for eligible households or £300 for those with members aged 80 and over.
Applications for Pension Credit filed by December 21, 2024, may qualify for a backdated Winter Fuel Payment.
A Highly Under-Claimed Benefit
Pension Credit remains under-claimed despite its importance, with around 1.4 million older adults in Great Britain, including over 125,000 in Scotland, currently benefiting from it. This benefit can provide up to £4,000 of extra financial support annually, yet approximately 880,000 eligible pensioners are not claiming it.
Many pensioners mistakenly believe that their savings or homeownership disqualify them from receiving this support. However, even an award of £1 per week can unlock further assistance, including help with housing costs, heating bills, and Council Tax.
Who Should Check Eligibility for Pension Credit?
There are two forms of Pension Credit: Guarantee Credit and Savings Credit.
Guarantee Pension Credit
To qualify, you must:
- Be of State Pension age (66).
- Have a weekly income below £218.15 (single) or £332.95 (couple). These amounts may increase if you are disabled, a carer, or have certain housing costs.
Savings Credit
Eligibility requires that you:
- Reached State Pension age before April 6, 2016, or have a partner who did.
- Have qualifying income of at least £189.80 a week (single) or £301.22 a week (couple).
Pension Credit Payment Amounts
- Guarantee Credit tops up income to £218.15 a week for a single person or £332.95 for a couple.
- Savings Credit offers up to £17.01 a week for a single person and £19.04 for a couple, depending on income and savings. Income is calculated based on savings above £10,000.
How to Check Eligibility for Pension Credit
To determine eligibility, older individuals or their loved ones can use the Pension Credit calculator on the GOV.UK website. Alternatively, claims can be made by calling the Pension Credit helpline at 0800 99 1234, open Monday to Friday from 8 am to 6 pm. Additional support is available from Independent Age, Income Max, Citizens Advice, and Age UK.
