The DWP says hundreds of thousands of people are failing to receive all the financial help they are entitled to
Nearly 1.4 million elderly people across the UK, are currently receiving Pension Credit. This means-tested benefit could offer an average of £4,300 in extra support during the 2025/26 financial year.
Yet, the Department for Work and Pensions (DWP) reckons a whopping 760,000 pensioners are eligible for this State Pension boost but aren’t claiming it. The Department is continuing its awareness campaign until the end of the current financial year, urging people to check their eligibility and submit a claim.
Pensioner couples with a combined weekly income of less than £346, or single pensioners earning less than £227.10 per week, could be eligible for Pension Credit. Some older folks reckon that because they have savings or own their home, they wouldn’t qualify for this means-tested benefit. However, this benefit can also help with housing costs, heating bills and Council Tax.
What’s more, an award of just £1 per week is enough to unlock other forms of support, reports the Daily Record. The DWP recently confirmed that nearly 78 per cent of all new claims for Pension Credit are processed – from initial application to award decision letter – within the target timeframe of 50 working days (10 weeks).
This suggests that elderly people on a low income who make a new claim this month could receive their first payment and any arrears by the end of January. It’s crucial for all elderly people – whether single, married or cohabiting – to make sure they’re claiming all the additional financial support they’re entitled to this year. This will help increase their income and offset the ongoing cost of living crisis.
Who qualifies for Pension Credit?
Pension Credit comes in two types: Guarantee Credit and Savings Credit. To be eligible for Guarantee Pension Credit, you must have reached State Pension age (currently 66).
Your weekly income should be less than the minimum amount the UK Government considers necessary for living. This minimum is set at £227.10 for single people and £346.60 for couples.
- You have qualifying income of at least £198.27 a week for a single person and £314.34 a week for a couple
- 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
Guarantee Credit boosts your weekly income to a certain level. You might qualify for more if you’re disabled, a carer, or have specific housing costs.
Savings Credit can provide up to a certain amount. The exact sum you’ll receive depends on your income and savings. Any income from savings and capital over £10,000 is taken into account.
Mixed-age older couples and Pension Credit
In May 2019, the law was altered so that a ‘mixed-age couple’ – a pair where one partner has reached State Pension age and the other hasn’t – are now considered a ‘working age’ couple when assessing entitlement to means-tested benefits.
This implies they cannot claim Pension Credit or pension age Housing Benefit until both partners have reached State Pension age. Prior to this DWP alteration, a mixed-age couple could have been eligible to claim the more generous State Pension age benefits when just one partner had reached State Pension age.
How to check your eligibility
You can verify your eligibility for Pension Credit via the government’s Pension Credit calculator here. To use the calculator, you’ll need details about yourself and your partner, if applicable, when answering some questions included in the calculator:
- 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
After answering the questions, a summary screen will display your responses, giving you the opportunity to revise any answers before final submission. The Pension Credit calculator then reveals the potential weekly benefit you could receive.
You can submit an application online via GOV.UK here. Alternatively, you can apply by post by printing and completing the Pension Credit claim form and sending it to the DWP Pension Service or ring the claim line to request a form.
Complete details of the application process can be found here.
