Pension Credit Alert: DWP Reaches Out to Over-66s Eligible for Pension Credit

The Department for Work and Pensions (DWP) has introduced a proactive strategy aimed at connecting individuals of State Pension age who receive Housing Benefit with Pension Credit eligibility, which many may not have claimed yet.

The scheme aims to improve the use of this income-related benefit, which has the potential to provide an extra £3,900 in State Pension income each year, as well as access to winter fuel payments.

Government's Commitment to Support Pensioners

Sir Stephen Timms, the Minister for Social Security and Disabilities, stated that the DWP can use internal data rather than depending on HM Revenue and Customs (HMRC) to identify those eligible for Pension Credit.

In a detailed response to Labour MP Paula Barker, he stated, “The government is actively working with external partners and local authorities to boost the uptake of Pension Credit and to target additional support to the poorest pensioners.”

In November, the DWP plans to directly contact pensioners already receiving Housing Benefit who may qualify for Pension Credit, expanding on last year’s 'Invitation to Claim' trial.

Sir Stephen talked about a long-term ambition to “bring together the administration of Pension Credit and Housing Benefit as soon as operationally possible,” ensuring that pensioner households receiving Housing Benefit also obtain any Pension Credit benefits they qualify for.

Pension Credit Eligibility

Pension Credit consists of two types: Guarantee Credit and Savings Credit.

1. Guarantee Pension Credit eligibility requires:
   • Being of State Pension age (currently 66).
   • A weekly income below the minimum living allowance set by the UK Government, which is £218.15 for individuals and £332.95 for couples. Higher amounts may apply for those who are disabled, caregivers, or have specific housing costs.
2. Savings Credit is available if:
   • You reached State Pension age before April 6, 2016, or your partner did and is receiving it.
   • You have qualifying income of at least £189.80 weekly for individuals or £301.22 for couples.

Financial Benefits of Pension Credit

Eligible individuals can benefit from:

• Guarantee Credit: Increases weekly income to:
  • £218.15 for a single person
  • £332.95 for couples
• Savings Credit: Offers up to:
  • £17.01 weekly for singles
  • £19.04 weekly for couples

The actual amount received will depend on individual income and savings, including deemed income from savings exceeding £10,000.

How to Check Eligibility for Pension Credit

Elderly individuals, or their relatives, can quickly assess eligibility by using the online Pension Credit calculator available on GOV.UK.

Alternatively, pensioners can contact the Pension Credit helpline at 0800 99 1234, available from 8 am to 6 pm, Monday to Friday.

Additional support is accessible from organizations such as:

• Independent Age
• Income Max
• Citizens Advice
• Age UK

Benefits Associated with Pension Credit

If eligible for Pension Credit, recipients may also qualify for further assistance, including:

• Housing Benefit for renters
• Support for Mortgage Interest for homeowners
• Council Tax discounts
• Free TV licences for those aged 75 and over
• Assistance with NHS dental treatments, glasses, and transportation costs for hospital visits
• Heating cost support via the Warm Home Discount Scheme or Winter Fuel Payments
• Discounts on the Royal Mail redirection service during house moves

Mixed Age Couples and Pension Credit Changes

Since May 2019, legislation has changed regarding mixed age couples—where one partner is of State Pension age and the other is younger. Such couples are now classified as 'working age' for means-tested benefits, meaning they cannot claim Pension Credit or pension-age Housing Benefit until both partners reach State Pension age.

Using the Pension Credit Calculator

To utilize the calculator on GOV.UK, gather information on:

• Earnings, benefits, and pensions
• Savings and investments

The process includes answering a series of multiple-choice questions about your personal details and financial circumstances. After submitting your information, the calculator will provide an estimate of potential weekly benefits and guide you to the application page.

How do You Make a Claim

You may start your application up to four months before reaching State Pension age. Claims can be made anytime after reaching this age, but can only be backdated for three months, allowing you to receive up to three months of Pension Credit in your first payment if eligible.

Required documents include:

• National Insurance number
• Information about your income, savings, and investments
• Bank account details if applying by phone or post

To verify your entitlement, contact the Pension Credit helpline at 0800 99 1234 or use the GOV.UK Pension Credit calculator.