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The DWP is urging Britons to check if they or a loved one may be eligible to claim Pension Credit.
The benefit is tax-free and can be worth up to £3,900 a year, which could make a significant difference to a person’s finances.
Posting on social media platform X, the Department for Work and Pensions (DWP) wrote today: “Don’t miss out on #PensionCredit. Around 1.4 million households are already claiming.”
Claiming it can open the door to additional support, such as free TV licences and discounted Council Tax.
Research by Charity Age UK estimates that as many as 800,000 pensioners could be entitled to the benefit but aren’t claiming it, despite a growing number struggling with current living costs.
Who is eligible for Pension Credit?
Pension Credit is separate from the state pension and people can receive this even if they have other income, savings, or own their own home.
To claim, people must live in England, Scotland or Wales and have reached the state pension age (66 and over). They or their partner must also receive housing benefits.
If this applies, the person must work out their weekly income. This would include their state pension, other pensions, earnings from employment and self-employment, and most social security benefits, such as Carer’s Allowance.
However, not all benefits are counted as income. According to the DWP, the following are not counted and shouldn’t be included in the calculation:
- Adult Disability Payment
- Attendance Allowance
- Christmas Bonus
- Child Benefit
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Social fund payments, such as the Winter Fuel Allowance
- Housing Benefit
- Council Tax Reduction.
Single pensioners are most likely to be eligible for Pension Credit if their total weekly income is roughly under £220, and £320 a week for pensioner couples.
People may still be eligible even if their income exceeds this threshold, so it’s worth checking the Government Pension Credit calculator just in case.
How much is Pension Credit worth?
At present, Pension Credit tops up a person’s weekly income to:
- £201.05 if they’re single
- £306.85 if they have a partner.
People may get extra amounts if they have other responsibilities and costs, which is known as ‘Guarantee Credit’. The full list of top-up payments and eligibility can be found here.
From April 2024, these figures will rise in line with September 2023’s inflation rate of 6.7 percent. This will top a claimant’s weekly income up to:
- £218.15 if they’re single
- £332.95 if they have a partner.
How to claim Pension Credit
People can start their application up to four months before they reach the state pension age.
The benefit can also be applied for any time after a person reaches state pension age, but applications can only be backdated by three months.
This means claimants can get up to three months of Pension Credit in their first payment if they were eligible during that time.
People can apply online, by post, or by phone on 0800 99 1234.
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