Thousands of pensioners may be missing out on up to £4,300 in Pension Credit each year, despite the significant financial support it offers.
This essential benefit, provided by the Department for Work and Pensions (DWP), serves as a safety net for older Britons, supplementing their income and helping to cover living costs. Many individuals who are eligible for this support remain unaware of their entitlement, with a large portion failing to apply.
According to GB News, the under-claiming of Pension Credit could leave thousands of retirees without crucial financial assistance, even though they are entitled to it.
What Is Pension Credit and Who Is Eligible?
Pension Credit is a means-tested benefit designed to support low-income individuals who have reached state pension age. For single pensioners, the income threshold for eligibility is below £227.10 per week, while couples must have an income under £346.60.
Those with savings under £10,000 generally remain eligible, and the benefit offers additional help for housing costs, heating bills, and Council Tax.
To qualify for Guarantee Pension Credit, individuals must have weekly income below £227.10 if living alone, or £346.60 if living with a partner. This threshold may be higher for those who are disabled, carers, or have certain housing costs.
Pensioners must also consider other income sources, including state pensions, employment earnings, and DWP benefits, which are included in the eligibility calculations.
For example, savings above £10,000 can affect eligibility. For every £500 of savings above this threshold, £1 per week is added to the income calculation, which could disqualify some from receiving support.
However, pensioners with savings under £10,000 will not see their savings affect their eligibility for Pension Credit.
The Scale of Unclaimed Benefits
New figures reveal that many eligible pensioners, particularly those living alone, fail to claim Pension Credit. In England and Wales, over 3.3 million people aged 65 and above live alone, and around 337,000 single pensioner households exist in Scotland.
Despite this large potential pool of claimants, a significant portion of them are not receiving this vital financial assistance, which could help mitigate the rising costs of living.
Currently, approximately 1.4 million older people across the UK, including over 125,000 in Scotland, are receiving Pension Credit. Yet, many pensioners are still unaware that they may be eligible, meaning the unclaimed benefit remains substantial.
As the number of older people continues to rise, the need for increased awareness and better outreach has never been more urgent.
Why Are Pensioners Missing Out?
Despite the apparent benefits of Pension Credit, common misconceptions persist. Many older individuals mistakenly believe that owning a home or having savings disqualifies them from receiving support, but this is not always the case.
In fact, savings under £10,000 won’t affect eligibility, and even a small award of just £1 a week can unlock additional support, such as help with Winter Fuel Payments, which are now only available to those receiving Pension Credit.
The belief that only those with very low income or savings can qualify for the benefit is widespread, and it often results in eligible individuals not applying for the support they need. In reality, Pension Credit can also provide assistance with housing costs, heating bills, and Council Tax, which are vital during the cost of living crisis.
How to Apply and Check Eligibility
To apply for Pension Credit, pensioners can use the online calculator available on the GOV.UK website or call the DWP helpline at 0800 99 1234.
The application process is straightforward, and the DWP has confirmed that nearly 78% of claims are processed within 50 working days.
Eligible pensioners who apply now could receive their first payment and any arrears by mid-September, offering much-needed financial relief in a timely manner.
Expert Insight
Lisa Picardo, the chief business officer at PensionBee, highlighted the ongoing issue of unclaimed Pension Credit benefits:
With around three in ten eligible pensioners still not applying according to the government, thousands continue to miss out on extra income that could make a real difference.
She emphasized that the eligibility for Pension Credit is often wider than assumed, especially when considering how various forms of income—such as savings interest or investment withdrawals—are treated under the tax system.
Eligibility is often wider than assumed, particularly when considering how different forms of income such as savings interest or investment withdrawals are treated within the tax system, – Picardo noted.
With Winter Fuel Payments now only available to those receiving Pension Credit, it’s more important than ever for pensioners to check if they qualify.
According to Picardo, the process of applying is “straightforward,” and it could result in thousands of pounds in additional support each year for pensioners in need. As more benefits, such as the Winter Fuel Payment, are tied to Pension Credit, the urgency for pensioners to apply is growing.
