DWP Changes Could Mean an Extra £326 a Month for 880,000 Pensioners

According to online guidelines from the Department for Work and Pensions (DWP), individuals of State Pension age who have a low income may be eligible for further financial assistance.

If you are receiving Attendance Allowance, the medium or higher rate of the care component of Disability Living Allowance (DLA), Personal Independence Payment (PIP), or Adult Disability Payment (ADP), you may be eligible for an additional £81.50 a week in Pension Credit. This comes to £326 every four weeks.

Additional Benefits for Couples and Carers

For couples, where one person claims Pension Credit and receives a disability benefit, £81.50 extra per week is also available, adding up to £326 per month. Additionally, if you’re a recipient of Carer’s Allowance, you may be entitled to a further £45.60 per week.

Even if you’re not receiving Carer’s Allowance due to a higher income-related benefit like the State Pension, this doesn’t mean you’re ineligible. You might still qualify under what is known as “underlying entitlement.”

Across Great Britain, 1.4 million pensioners are already benefiting from these forms of support, including 125,000 people in Scotland, with the average yearly assistance reaching £3,900.

Under-Claiming and Recent Changes

Despite these benefits, 880,000 eligible pensioners are still not claiming the support they are entitled to, according to recent DWP figures. This has become more significant following the new Winter Fuel Payments rule.

Now, only those receiving income-related benefits, such as Pension Credit, will qualify for the annual Winter Fuel Payment, which is worth between £100 and £300.

Many pensioners mistakenly believe they don’t qualify for Pension Credit if they have savings or own their home. This is not true. Even those who receive as little as £1 per week may still unlock valuable support for housing costs, heating bills, and Council Tax.

Who Qualifies for the DWP Pension Credit?

There are two types of Pension Credit: Guarantee Credit and Savings Credit.

Guarantee Credit is for those of State Pension age (currently 66), with a weekly income below what the government deems necessary for living. This threshold is set at £218.15 for single individuals and £332.95 for couples. Higher amounts apply if you're disabled, a carer, or have housing costs.
Savings Credit is available only if:
- You (or your partner) reached State Pension age before April 6, 2016.
- Your weekly qualifying income is at least £189.80 (single) or £301.22 (couples).

How Much Could You Receive?

Guarantee Credit can supplement your income up to the minimal requirement, whereas Savings Credit provides a boost based on your savings and income. Any savings more than £10,000 are taken into consideration when determining how much you can get.

How to Check Your Eligibility

To determine if you’re eligible, you can use the Pension Credit calculator on GOV.UK. You’ll need details about:

Earnings, benefits, and pensions
Savings and investments

The tool will also ask questions like:

Your date of birth
Residential status and location
If you're registered blind
Any benefits you receive and their amounts
Carer’s Allowance details
Pensions (State, private, and work)
Any employment earnings and savings

After completing the questions, a summary will display your responses, allowing you to make changes if needed. The calculator will then estimate how much Pension Credit you could receive.

Who Cannot Use the Pension Credit Calculator?

You won’t be able to use the calculator if you or your partner:

Are deferring your State Pension
Own more than one property
Are self-employed
Have housing costs not covered by Housing Benefit (such as service charges)

You can apply for Pension Credit up to four months before reaching State Pension age. Even after you reach this age, you can claim at any time, though backdating is limited to three months.