The Department for Work and Pensions (DWP) reported recently that some 78% of all new claims for Pension Credit are being processed within the target time of 50 working days.
This efficient processing means that older people, particularly those living alone and applying for the first time this month, could receive their first payment and any arrears by the end of July.
However, even with the annual pension increase in April, which took the new full state pension to £221.20 a week and the full basic state pension to £169.50, many older people continue to face financial hardship.
Data from the Office for National Statistics (ONS) revealed that by 2021, around 3.3 million people aged 65 and over were living alone in England and Wales, with around 337,000 single pensioner households in Scotland.
Why Apply for Additional Financial Assistance?
Seniors, whether single, married or cohabiting, need to ensure that they claim all the financial support available to them.
Pension credit, which is specifically designed to provide additional financial support for older people on low incomes, remains one of the least claimed benefits.
Currently, almost 1.4 million older people in Great Britain, including more than 126,800 in Scotland, receive this means-tested benefit, which can provide almost £4,000 a year in extra help.
However, DWP figures show that around 880,000 eligible pensioners are still not claiming the benefit to which they are entitled.
Understanding Pension Credit
Pension credit is divided into two types: Guarantee Credit and Savings Credit.
- Guarantee Credit: to qualify, you must have reached State Pension age (66) and have a weekly income below the minimum amount that the UK government deems necessary to live on. This threshold is £218.15 for a single person and £332.95 for a couple. Higher amounts may be available for disabled people, carers or those with housing costs.
- Savings Credit: This credit is available if you or your partner reached State Pension age before 6 April 2016. To qualify, your weekly income must be at least £189.80 for a single person and £301.22 for a couple.
Potential Payments
The Guarantee Credit can boost your weekly income by up to:
- £218.15 for a single person
- £332.95 for a couple
Extra payments may be made to disabled people, those caring for relatives or those with specific housing costs.
The Savings Credit can provide up to:
- £17.01 a week for a single person
- £19.04 a week for a couple
You will receive an exact amount depending on your income and savings, including deemed income from savings and capital in excess of £10,000.
Mixed Age Couples and Pension Credit
Since May 2019, mixed couples (where one partner has reached State Pension age and the other has not) have been treated as ‘working age’ couples for means-tested benefits.
This change means that they cannot claim pension credit or housing benefit at pension age until both partners reach state pension age.
Previously, a mixed couple could claim the more generous state pension age benefits when one partner reached state pension age.
Quick Eligibility Check
For a quick check on eligibility and to estimate potential payments, older people or their friends and family can use the online Pension Credit calculator at GOV.UK. The Pension Credit Helpline is also available on 0800 99 1234, 8am to 6pm, Monday to Friday.
For free and confidential advice, Independent Age can be contacted on 0800 319 6789 or by email at helpline@independentage.org. Full contact details are available on their website.
How to Apply
You can apply for pension credit up to four months before reaching state pension age. Claims can be made at any time after reaching state pension age, but can only be backdated by three months, which may result in three months' pension credit being paid on the first instalment if the person is eligible during that period.
Applicants will need:
- National Insurance number
- Information about income, savings, and investments
- Bank account details (if applying by phone or post)
- Details of income, savings, and investments on the desired claim start date (if backdating the claim)
Apply online
You can apply online if:
- You have already claimed your State Pension
- There are no children or young people included in your claim