{"id":31645,"date":"2024-03-14T07:59:50","date_gmt":"2024-03-14T02:29:50","guid":{"rendered":"https:\/\/farratanews.online\/dwp-warns-dont-miss-out-on-this-tax-free-benefit-worth-extra-3900-a-year-personal-finance-finance\/"},"modified":"2024-03-14T07:59:50","modified_gmt":"2024-03-14T02:29:50","slug":"dwp-warns-dont-miss-out-on-this-tax-free-benefit-worth-extra-3900-a-year-personal-finance-finance","status":"publish","type":"post","link":"https:\/\/farratanews.online\/dwp-warns-dont-miss-out-on-this-tax-free-benefit-worth-extra-3900-a-year-personal-finance-finance\/","title":{"rendered":"DWP warns ‘don’t miss out’ on this tax-free benefit worth extra \u00a33,900 a year | Personal Finance | Finance"},"content":{"rendered":"

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The DWP is urging Britons to check if they or a loved one may be eligible to claim Pension Credit.<\/p>\n

The benefit is tax-free and can be worth up to \u00a33,900 a year, which could make a significant difference to a person\u2019s finances.<\/p>\n

Posting on social media platform X, the Department for Work and Pensions (DWP) wrote today: \u201cDon’t miss out on #PensionCredit<\/a>. Around 1.4 million households are already claiming.\u201d<\/p>\n

Claiming it can open the door to additional support, such as free TV licences and discounted Council Tax.<\/p>\n

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.<\/p>\n<\/div>\n

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Who is eligible for Pension Credit?<\/strong><\/h3>\n

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.<\/p>\n

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.<\/p>\n

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\u2019s Allowance.<\/p>\n

However, not all benefits are counted as income. According to the DWP, the following are not counted and shouldn\u2019t be included in the calculation:<\/p>\n

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  • Adult Disability Payment<\/li>\n
  • Attendance Allowance<\/li>\n
  • Christmas Bonus<\/li>\n
  • Child Benefit<\/li>\n
  • Disability Living Allowance (DLA)<\/li>\n
  • Personal Independence Payment (PIP)<\/li>\n
  • Social fund payments, such as the Winter Fuel Allowance<\/li>\n
  • Housing Benefit<\/li>\n
  • Council Tax Reduction.<\/li>\n<\/ul>\n<\/div>\n
    \n

    Single pensioners are most likely to be eligible for Pension Credit if their total weekly income is roughly under \u00a3220, and \u00a3320 a week for pensioner couples.<\/p>\n

    People may still be eligible even if their income exceeds this threshold, so it\u2019s worth checking the Government Pension Credit calculator just in case.<\/p>\n

    How much is Pension Credit worth?<\/strong><\/h3>\n

    At present, Pension Credit tops up a person\u2019s weekly income to:<\/p>\n

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    • \u00a3201.05 if they\u2019re single<\/li>\n
    • \u00a3306.85 if they have a partner.<\/li>\n<\/ul>\n<\/div>\n
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      People may get extra amounts if they have other responsibilities and costs, which is known as \u2018Guarantee Credit\u2019. The full list of top-up payments and eligibility can be found here.<\/p>\n

      From April 2024, these figures will rise in line with September 2023\u2019s inflation rate of 6.7 percent. This will top a claimant\u2019s weekly income up to:<\/p>\n

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      • \u00a3218.15 if they\u2019re single<\/li>\n
      • \u00a3332.95 if they have a partner.<\/li>\n<\/ul>\n<\/div>\n
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        How to claim Pension Credit<\/strong><\/h3>\n

        People can start their application up to four months before they reach the state pension age.<\/p>\n

        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.<\/p>\n

        This means claimants can get up to three months of Pension Credit in their first payment if they were eligible during that time.<\/p>\n

        People can apply online, by post, or by phone on 0800 99 1234.<\/p>\n<\/div>\n