Pension Credit is changing, and it could affect thousands of older people across the UK. A quiet adjustment to the benefit system is set to come into force this month, potentially boosting financial support for pensioners already facing rising living costs.
Details confirmed by the Department for Work and Pensions (DWP) suggest that specific groups may see a noticeable difference in their payments.
According to a report by DevonLive, the upcoming change involves updates to a key component of Pension Credit that interacts with several other benefits. While modest on paper, the impact could be more significant than expected.
Increase to Pension Credit Disability Top-Up
The disability addition in Pension Credit will increase from £81.50 to £82.90 per week. Over a standard four-week payment period, this equates to a rise from £326 to £331.60, a net increase of £5.60.
This adjustment applies to individuals who receive Attendance Allowance, the middle or higher rate care component of Disability Living Allowance (DLA), Personal Independence Payment (PIP), or the Adult Disability Payment (ADP), which is only available in Scotland.
As stated by the DWP in official advice, this increase targets pensioners with a low income and a qualifying disability benefit. The same applies to couples if at least one partner receives a disability benefit, who will also get £82.90 per week added to their Pension Credit.
Carer’s Allowance and Overlapping Entitlements
Pensioners receiving Carer’s Allowance will see their extra Pension Credit component rise from £45.60 to £46.40 per week. This also includes pensioners who don’t receive Carer’s Allowance payments in full due to overlapping benefits such as the State Pension. These individuals, who often have what’s called an “underlying entitlement”, may still qualify for the Carer’s Addition to Pension Credit.
As reported by the Daily Record, this scenario commonly occurs when
They are being paid a higher amount by another, income-related benefit such as the State Pension.
Estimated Support and Widespread Underclaiming
According to recent figures from the DWP, nearly 1.4 million older people across Great Britain currently receive Pension Credit, which can provide an average of £4,200 per year in additional support. Still, an estimated 760,000 pensioners are eligible but not claiming the benefit.
This shortfall may be due to common misconceptions. As the DWP highlights,
Many elderly people mistakenly think that their savings or home ownership disqualifies them from receiving this means-tested benefit.
In practice, Pension Credit can be awarded even when an individual owns property or has savings, depending on income thresholds.
How pension credit boosts income and support
Pension Credit guarantees a minimum weekly income of £218.15 for single pensioners or £332.95 for couples. It is tax-free and available to those who have reached State Pension age and live in Great Britain.
In addition to the guaranteed income, those qualifying for Pension Credit may gain access to a wide range of additional benefits. These include a Council Tax discount, assistance with heating costs through the Warm Home Discount Scheme and Winter Fuel Payment, support for mortgage interest for homeowners, and a Royal Mail redirection discount if moving home.
Additionally, those qualifying may receive help with NHS dental treatment, glasses, and hospital transport, a free TV licence if aged 75 or over, and Housing Benefit if renting.
Application timeline and required information
You can apply for Pension Credit up to four months before reaching State Pension age. Claims can also be backdated up to three months, meaning that if eligible during that period, you may receive a lump sum covering those weeks.
To apply, you will need your National Insurance number, details of your income, savings, and investments, and bank account information if applying by phone or post. For backdated claims, you will need to provide the same financial details as of the chosen claim start date.
You can quickly check eligibility using the Pension Credit calculator on GOV.UK or apply directly by calling the Pension Credit helpline at 0800 99 1234, open from 8am to 6pm, Monday to Friday.
