Department for Work and Pensions (DWP) has announced that almost 78% of new Pension Credit claims are now being processed within a target of 50 working days from the date of receipt of the application to the notification letter of the award decision.
This development means that older individuals with low income, especially those who live alone, who submit their applications this month, could expect their first payment, including any arrears, by mid-September.
Current Pension Rates
Even though April brought an annual increase, raising the full New State Pension to £221.20 per week and the full Basic State Pension to £169.50, data from the Office for National Statistics (ONS) in 2021 revealed that around 3.3 million people aged 65 and older were living alone in England and Wales. Scotland reported about 337,000 single pensioner households.
Ensuring that older individuals—whether single, married, or cohabiting—receive all the financial support available to them is vital. Pension Credit, a means-tested benefit designed to provide additional financial assistance to older people on a low income, remains significantly under-claimed.
Currently, nearly 1.4 million older people across Great Britain, including over 126,800 in Scotland, receive Pension Credit, which can offer nearly £4,000 in extra support annually.
However, DWP figures indicate that around 880,000 eligible pensioners are not claiming the benefit they are entitled to.
Eligibility for Pension Credit
Pension Credit comes in two forms: Guarantee Credit and Savings Credit.
Guarantee Credit:
- To qualify, you must be of State Pension age (66 years).
- Your weekly income must be below the minimum required by the UK Government, which is £218.15 for a single person and £332.95 for a couple. This amount may increase if you are disabled, a carer, or have specific housing costs.
Savings Credit:
- You can only receive Savings Credit if you reached State Pension age before 6 April 2016, or if your partner reached this age before this date and was already receiving it.
- You must have a qualifying income of at least £189.80 per week for a single person and £301.22 per week for a couple.
Potential Benefits
Guarantee Credit:
- Tops up your weekly income to £218.15 for a single person and £332.95 for a couple. You might receive more if you are disabled, a carer, or have certain housing costs.
Savings Credit:
- Provides up to £17.01 per week for a single person and £19.04 per week for a couple. The exact amount depends on your income and savings, including assumed income from savings and capital over £10,000.
Additional Support with Pension Credit
If you qualify for Pension Credit, you may also receive additional help, including:
- Housing Benefit if you rent your home
- Support for Mortgage Interest if you own your home
- Council Tax discount
- Free TV licence if you are 75 or older
- Assistance with NHS dental treatment, glasses, and transport costs for hospital appointments
- Help with heating costs through the Warm Home Discount Scheme
- A discount on the Royal Mail redirection service if you are moving house
Fastest Way to Check Your Eligibility
Older individuals, or their friends and family, can swiftly check eligibility and estimate potential benefits using the online Pension Credit calculator on GOV.UK. If they prefer, pensioners can also reach out to the Pension Credit helpline at 0800 99 1234, available from 8 am to 6 pm, Monday to Friday.
Additionally, Independent Age provides free and confidential advice through their helpline at 0800 319 6789 or via email at helpline@independentage.org.
How to Apply?
You have the option to begin your application up to four months before you hit State Pension age. Even though you can apply anytime after reaching this age, remember that claims can only be backdated for three months. This means your first payment could include up to three months of Pension Credit, provided you qualify.
You will need:
- Your National Insurance number
- Information about your income, savings, and investments
- Bank account details if applying by phone or post
For backdated claims, you will need details of your income, savings, and investments on the date you wish your claim to start.
Online Application
You can use the online service if:
- You have already claimed your State Pension
- No children or young people are included in your claim
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