Millions of people over state pension age in Great Britain could be failing to claim extra payments of more than £9,544 each year, simply because most of them do not know about the two benefits, or think they do not qualify for them.
Pension Credit provides assistance to seniors over the age of 66 with limited income by increasing annual income by up to £3,900 on average while Attendance Allowance helps by providing additional financial assistance of around £434 each month, amounting to £5,644 each year, for those living with a chronic health condition or disability.
There are nearly 12.7 million people over State Pension age and according to the Department for Work and Pensions (DWP) around 880,000 qualify for Pension Credit and not claiming the benefit. Furthermore, over one million pensioners are thought to be eligible for Attendance Allowance, which is not impacted by income or savings, is tax-free and is not regarded as income in the context of claiming Pension Credit.
The New State Pension rate is worth up to £221.20 per week, amounting to £884.80 every four-week pay cycle. The Basic State Pension is valued at £169.50 each week, some £678 every four-week pay cycle.
Understanding Pension Credit
Pension Credit presently provides support for 1.4 million people, including 126,000 residing in Scotland. It makes the weekly income reach a guaranteed minimum rate of £218.15 per week for single pensioners or £332.95 for couples. It is typically valued at £3,900 each year.
If you are a single person on the New State Pension and your total weekly income is below £218.15, or part of a couple and your joined weekly income is less than £332.95, you may qualify for Pension Credit
In the same way, if you are over 65 and attained State Pension age before April 6, 2016 and on the Basic State Pension, you may still be eligible for Pension Credit if your weekly income does not exceed £260.68 if you are single or £380.55 if you have a partner.
Mixed Aged Older Couples and Pension Credit
In May 2019, the rules changed, meaning that a ‘mixed age couple’ — a couple where one partner has reached State Pension age and the other hasn't yet — are viewed as a ‘working age’ couple when entitlement to means-tested benefits is checked.
This implies that they cannot claim Pension Credit or pension age Housing Benefit until they both reach State Pension age. Prior to this DWP change, a mixed age couple could claim the more advantageous State Pension age benefits when only one of them attained State Pension age.
Other Benefits You Can Claim If You Get Pension Credit
If you are eligible for Pension Credit, you can also claim other help, including:
- Housing Benefit: if the property you live in is rented.
- Support for Mortgage Interest: if you are the owner of the property you reside in.
- Council Tax discount.
- Free TV licence: if you are 75 or older.
- Assistance with NHS dental treatment, spectacles, and transport fees for hospital appointments.
- Assistance with your heating bills via the Warm Home Discount Scheme.
- A price reduction on the Royal Mail redirection service if you are changing location.
How to Quickly Check If You Qualify for Pension Credit
In order to check your eligibility and get an estimate of what you may receive, use the online Pension Credit calculator on available on the GOV.UK website.
Another alternative consists of contacting the Pension Credit helpline directly to make a claim on 0800 99 1234 — lines are open from 8am to 6pm, Monday to Friday.
In addition, the DWP has published a video on YouTube which provides complete step-by-step instructions on how to use the online calculator available here.
Attendance Allowance: A Quick Overview
Attendance Allowance currently provides assistance to nearly 1.6 million older people all over Great Britain, including 140,716 living in Scotland with the additional daily living expenses of having a physical or mental health issue, disability or chronic illness. You do not need to have a caregiver to make a claim.
People over State Pension age who claim Attendance Allowance get either £72.65 (lower rate) or £108.55 (higher rate) every week. Since the benefit is typically paid every four weeks, this totals around £290.60 or £434.20 every payment cycle — some £5,644 over the 2024/25 fiscal year.
Who Can Claim?
You can submit an application for Attendance Allowance if you live with a disability or illness and require assistance or supervision during the day or at times throughout the night — even if you don’t presently claim that help.
This can include:
- Assistance with your personal care — including getting dressed, eating or drinking, getting in and out of bed, taking a bath or a shower and using the restroom.
- Assistance to stay safe
You should also submit an application if you face difficulties with personal tasks, for instance if they take you a long time or cause you pain. Attendance Allowance isn’t only provided for people with a physical disability.
You can also claim it if you need assistance or supervision during the day or night and have:
- A mental illness.
- Learning disorders.
- A sensory condition.