The latest set of Pension Credit statistics shows that an additional 58,800 households have been awarded the means-tested benefit since last summer’s Winter Fuel Payment announcement
A government minister has urged people to consider applying for Pension Credit. The Department for Work and Pensions (DWP) has unveiled new Pension Credit statistics that show an extra 58,800 households have been granted the means-tested benefit since last summer’s Winter Fuel Payment announcement limiting the benefit to Credit claimants.
The DWP also reported a significant reduction in outstanding applications. It’s fallen from approximately 30,000 at the end of June 2024 to 10,800.
Pensions Minister Torsten Bell previously stated that the average processing time for the State Pension income boost, worth over £4,300 this year, is 52.8 working days – roughly 10 weeks. This implies that low-income older individuals submitting new claims this month could receive their first payment and any arrears by the end of August.
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Commenting on the new figures, the DWP pensions minister said: “We are absolutely committed to ensuring every pensioner receives what they are entitled to. Thanks to our biggest ever awareness campaign we have dealt with a record number of Pension Credit claims in the last 10 months, with an additional 58,800 households now receiving support.
“Pension Credit can be a lifeline to those on low incomes, and I’d urge all pensioners who think they might be eligible after a change to their circumstances in later life to apply.
“This support for pensioners comes on top of our commitment to the Triple Lock, boosting the State Pension for millions by up to £1,900 this parliament” According to data, the Department for Work and Pensions (DWP) has seen a steep rise in Pension Credit applications in 2024/25, with 321,000 submissions marking a 28 per cent surge or an additional 69,900 compared to the previous year, reports the Daily Record.
After the Government’s decision on 29 July 2024 to means-test Winter Fuel Payments, DWP has received 285,600 claims for Pension Credit, which is a substantial 51 per cent increase, equating to 96,200 more than the same timeframe last year.
Of these applications, a total of 162,800 have been successful. That is a significant 57 per cent uptick or an additional 58,800 awards when contrasted with the corresponding period a year ago.
Commenting on the spike, Stephen Lowe, the group communications director at retirement firm Just Group, said: “The take up of Pension Credit has been subject to a harsh spotlight since the UK Government first limited the Winter Fuel Payments to people who are in receipt of Pension Credit or certain other means-tested benefits.”
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Lowe also noted the positive impact of the initiative, saying: “There has been a significant boost in take-up with more than 162,000 claims awarded since the means-testing of the winter fuel payment was introduced. This is a significant success that will see these low-income pensioner households receiving this much-needed financial support as well as unlocking the gateway to other valuable benefits, like the Winter Fuel Payments and free TV licences for the over-75s.”
He noted: “The Prime Minister recently confirmed that eligibility for Winter Fuel Payments will be widened, but this should not distract attention from the important job of work to be done to increase the take up of Pension Credit. This benefit is specifically targeted at the poorest pensioners and it remains a concern that there are still around 700,000 families that are eligible for Pension Credit but not claiming it.
“These people may be failing to claim for a number of reasons – they may simply be unaware of the benefit, not know how to claim or assume they are not eligible if they own their own home. Just’s research conducted this year among people aged over 66 found that four in 10 (40%) homeowners and one in seven (15%) of renters had never checked their benefit entitlement.”
Speaking further, he said: “The Government’s awareness drive is having a positive impact with the number of claims increasing noticeably, but there are people still missing out on this valuable help.
“If you think you, or a member of your family, may be entitled to Pension Credit there are a range of free resources to help check eligibility. The government website has links to useful third-party calculators while other good sources are Citizens Advice, local councils and charities.”
Who can claim Pension Credit?
There are two types of Pension Credit – Guarantee Credit and Savings Credit. To be eligible for Guarantee Pension Credit, you must have reached the State Pension age of 66. Your weekly income needs to be less than the minimum amount that the UK Government has determined is necessary for living.
This is £227.10 for a single person and £346.60 for a couple – these amounts could be higher if you’re disabled, a carer or have certain housing costs.
Savings Credit can only be received 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
How much could you potentially receive from DWP?
Guarantee Credit tops up your weekly income to:
- £227.10 for a single person
- £346.60 for a couple (married, in a civil partnership or cohabiting)
You might be able to receive more than this if you’re disabled or a carer, or you have certain housing costs.
Savings Credit can give you up to:
- £17.30 a week for a single person
- £19.36 a week for a couple (married, in a civil partnership or cohabiting).
ll get depends on your income and savings. Your income includes assumed income from savings and capital over £10,000.
How to determine eligibility for Pension Credit
Older people, or their 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.
Expert help and advice is also available from:
More details about claiming Pension Credit can be fond on GOV.UK here.
Additional help if you receive Pension Credit
If you qualify for Pension Credit you can also receive 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, Winter Fuel Payments or Pension Age Winter Heating Payment
- 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 was altered so that a ‘mixed age couple’ – a pair where one partner is of State Pension age and the other isn’t – are deemed to be a ‘working age’ couple when assessing entitlement to means-tested benefits.
This implies they can’t claim Pension Credit or pension age Housing Benefit until both are of State Pension age. Prior to this DWP alteration, 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’ve answered these questions, a summary screen displays your responses, allowing you to go back and alter any answers before submitting. The Pension Credit calculator then shows 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 responses you provide using the calculator tool to help you fill out the application form more swiftly without having to search for the same details again. Give the Pension Credit Calculator a go for yourself or a family member to ensure you’re receiving all the financial support you’re entitled to claim.
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Who can’t 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.
