Retirement experts are urging older people on a low income to make sure they are not missing out on an annual income boost of £3,900 from the Department for Work and Pensions (DWP). Just Group is also encouraging those who have made an unsuccessful claim for Pension Credit over the last year to check the details they submitted were correct, as they could be missing out on additional support for healing bills, housing costs or Council Tax.
Stephen Lowe, Group Communications director at retirement specialist Just Group, highlighted how eight in 10 claims for Pension Credit last year were eligible for the means-tested State Pension boost, but did not fill in the application form correctly.
He said that claimants failing to inform the DWP about reductions in their financial situation was the largest source of Pension Credit ‘unfulfilled eligibility’ between April 1, 2023 and March 31, 2024, according to the new DWP Fraud and Error report published last week.
The unfulfilled eligibility rate is the proportion of benefit claims, out of the total welfare funding allocated to a specific benefit, that are un-finished or unable to be processed due to missing evidence that is required to validate their claim.
Stephen said: “Benefits like Pension Credit are a valuable financial resource for retirees on low-incomes or for those who are disabled, are carers, or have dependents.
“This has been brought into sharper focus by the cost-of-living crisis in recent years as low-income pensioners have been grappling with steep rises in inflation. This has resulted in price increases of care costs, food and fuel, eating up more and more of their State Pension income. So, to see that eligible pensioners missed out on £80 million of extra income in the financial year ending 2024 due to submitting inaccurate information is deeply frustrating for everyone.
“The money is there to support the people who need it most, and although the application process can be lengthy, we strongly encourage people to persevere. There are many free resources online that provide guidance and advice on what benefits are available and how to claim them.”
Nearly 1.4 million older people across Great Britain, including more than 126,800 living in Scotland, are currently receiving Pension Credit support of around £3,900 each year. However, the latest figures from the DWP suggest there are still 880,000 eligible pensioners not claiming the benefit they are entitled to.
That could all change next month as DWP have confirmed its third annual ‘Pension Credit Week of Action’ will take place between June 10-14. The campaign aims to ramp up the ongoing Pension Credit take-up campaign that launched in April 2022.
Below is an overview of the benefit, including who should check eligibility, how to go about it, how much you could get, and where to get help filling in the form.
Who can claim Pension Credit?
There are two types of Pension Credit - Guarantee Credit and Savings Credit.
To qualify for Guarantee Pension Credit , you must be State Pension age (66). Your weekly income will need to be less than the minimum amount the UK Government says you need to live on.
For 2024/25, this is £218.15 for a single person and £332.95 for a couple - this amount could be higher if you're disabled, a carer or have certain housing costs.
You can only get Savings Credit if:
you reached State Pension age before April 6, 2016, or you have a partner who reached State Pension age before this date and was already receiving it
you have qualifying income of at least £189.80 a week for a single person and £301.22 a week for a couple
How much could you get?
Guarantee Credit tops up your weekly income to:
£218.15 for a single person
£332.95 for a couple (married, in a civil partnership or cohabiting)
You might be able to get more than this if you're disabled or a carer, or you have certain housing costs.
Savings Credit can give you up to:
£17.01 a week for a single person
£19.04 a week for a couple (married, in a civil partnership or cohabiting).
The exact amount you’ll get depends on your income and savings. Your income includes assumed income from savings and capital over £10,000.
Quickest way to check eligibility for Pension Credit
Older people, or friends and family, can quickly check their eligibility and get an estimate of what they may receive by using the online Pension Credit calculator on GOV.UK here.
Alternatively, pensioners can contact the Pension Credit helpline directly to make a claim on 0800 99 1234 - lines are open 8am to 6pm, Monday to Friday. Due to the bank holiday on Monday, May 6 all DWP phone lines and offices will be closed, but will reopen on Tuesday.
Independent Age offers free and confidential advice, their helpline number is 0800 319 6789, you can also email them at helpline@independentage.org. Full contact details can be found on their website here.
Other help if you get Pension Credit
If you qualify for Pension Credit you can also get other help, such as:
Housing Benefit if you rent the property you live in
Support for Mortgage Interest if you own the property you live in
Council Tax discount
Free TV licence if you are aged 75 or over
Help with NHS dental treatment, glasses and transport costs for hospital appointments
Help with your heating costs through the Warm Home Discount Scheme
A discount on the Royal Mail redirection service if you are moving house
Mixed aged older couples and Pension Credit
In May 2019, the law changed so a ‘mixed age couple’ - a couple where one partner is of State Pension age and the other is under it - are considered to be a ‘working age’ couple when checking entitlement to means-tested benefits.
This means they cannot claim Pension Credit or pension age Housing Benefit until they are both State Pension age. Before this DWP change, a mixed age couple could be eligible to claim the more generous State Pension age benefits when just one of them reached State Pension age.
How to use the Pension Credit calculator
To use the calculator on GOV.UK, you will need details of:
earnings, benefits and pensions
savings and investments
You’ll need the same details for your partner if you have one.
You will be presented by a series of questions with multiple choice answer options.
This includes:
Your date of birth
Your residential status
Where in the UK you live
Whether you are registered blind
Which benefits you currently receive
How much you receive each week for any benefits you get
Whether someone is paid Carer’s Allowance to look after you
How much you get each week from pensions - State Pension, private and work pensions
Any employment earnings
Any savings, investments or bonds you have
Once you have answered these questions, a summary screen shows your responses, allowing you to go back and change any answers before submitting. The Pension Credit calculator then displays how much benefit you could receive each week.
All you have to do then is follow the link to the application page to find out exactly what you will get from the DWP, including access to other financial support.
There’s also an option to print off the answers you give using the calculator tool to help you complete the application form quicker without having to look out the same details again. Try the Pension Credit Calculator for yourself or your family member to make sure you’re receiving all the financial support you are entitled to claim.
Who cannot use the Pension Credit calculator?
You cannot use the calculator if you or your partner:
are deferring your State Pension
own more than one property
are self employed
have housing costs (such as service charges or Crown Tenant rent) which are neither mortgage repayments nor rent covered by Housing Benefit
How to make a claim
You can start your application up to four months before you reach State Pension age. You can claim any time after you reach State Pension age but your claim can only be backdated for three months.
This means you can get up to three months of Pension Credit in your first payment if you were eligible during that time.
You will need:
your National Insurance number
information about your income, savings and investments
your bank account details, if you’re applying by phone or by post
If you’re backdating your claim, you’ll need details of your income, savings and investments on the date you want your claim to start.
Apply online
You can use the online service if:
you have already claimed your State Pension
there are no children or young people included in your claim
To check your entitlement, phone the Pension Credit helpline on 0800 99 1234 or use the GOV.UK Pension Credit calculator here to find out how much you could get.
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