State Pensioners getting less than £346 could be due £4,300 boost

New figures from the Department for Work and Pensions (DWP) reveal that in the year following the announcement on July 29, 2024, that Winter Fuel Payments would be limited to those on Pension Credit and other specific income-related benefits, applications have soared by 44 per cent, climbing by 98,200 additional claims to reach 320,300.

By the end of July this year, around 181,100 Pension Credit applications for the means-tested benefit - valued at more than £4,300 annually - were processed and approved. This represents a surge of 57,200 additional successful claims compared to the equivalent period last year, reports the Daily Record.

Pension Credit is now assisting 1.4 million elderly people on low incomes throughout the UK. Responding to the figures, David Brooks, Head of Policy at prominent independent financial services consultancy Broadstone, said: "It is great news over 57,000 more pensioners entitled to Pension Credit are now receiving this important financial benefit to support their retirement incomes."

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"Pension Credit is explicitly targeted at lower income pensioners but hundreds of thousands of eligible retired households are still not claiming this benefit. While the UK Government's policy on Winter Fuel Payments has grown awareness of this issue and increased take up of Pension Credit significantly, the rise of claimants in the past year still does not get near to closing the gap sufficiently.

"We would urge all pensioners to check whether they are eligible for Pension Credit as we head towards another winter that appears likely to be dominated by the cost of living, the adequacy of the State Pension and further tax rises."

Pension Credit remains the most under-claimed benefit and is specifically designed to deliver extra financial assistance for elderly people on modest incomes - both singles and couples. Some older Brits believe that having savings or owning their property would disqualify them from the means-tested benefit, which can also unlock assistance with accommodation expenses, heating costs and Council Tax.

An entitlement of only £1 weekly is sufficient to access additional support. Below is a breakdown of the benefit including who ought to verify eligibility, the process involved, potential amounts available and where to seek assistance completing the application.

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.

This is £227.10 for a single person and £346.60 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 £198.27 a week for a single person and £314.34 a week for a couple

How much could you 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)

If you're a carer, disabled, or have certain housing costs, you might be eligible for more than the standard amount.

Savings Credit could provide you with up to:

• £17.30 a week for a single person
• £19.36 a week for a couple (married, in a civil partnership or cohabiting).

The exact sum you'll receive is dependent on your income and savings, including assumed income from savings and capital over £10,000.

To check eligibility for Pension Credit

Elderly people, or their friends and family, can swiftly verify their eligibility and get an estimate of potential benefits using the online Pension Credit calculator on GOV.UK here. Alternatively, pensioners can ring the Pension Credit helpline directly to make a claim on 0800 99 1234 - lines are open from 8am to 6pm, Monday to Friday.

Expert guidance and advice can also be sought from:

• Independent Age
• Income Max
• Citizens Advice
• Age UK

More information about claiming Pension Credit can be found on GOV.UK here.

Additional assistance if you qualify for Pension Credit

If you're eligible for Pension Credit, you can also access other forms of 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 age older couples and Pension Credit

In May 2019, legislation was altered so that a 'mixed age couple' - a pair where one partner is of State Pension age and the other is below it - are deemed to be 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 reach State Pension age. Prior to 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 utilise the Pension Credit calculator

To use the calculator on GOV.UK, you'll need details of your earnings, benefits and pensions, as well as any savings and investments. If you have a partner, you'll need their details too. You'll be asked a series of multiple-choice questions.

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, a summary screen will display your responses, allowing you to go back and amend any answers before submitting. The Pension Credit calculator will then show how much benefit you could receive each week.

All that's left to do is follow the link to the application page to find out exactly what you'll 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.

However, not everyone can 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, or have housing costs (such as service charges or Crown Tenant rent) which are neither mortgage repayments nor rent covered by Housing Benefit.

You can start your application up to four months prior to reaching State Pension age. You're free to claim any time after you reach State Pension age, but your claim can only be backdated for three months.

This means that you can receive up to three months of Pension Credit in your first payment if you were eligible during that period.

You will require:

• your National Insurance number.
• details about your income, savings and investments.
• your bank account details, if you're applying via phone or by post.

If you're backdating your claim, you'll need specifics of your income, savings and investments on the date you want your claim to commence.

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 verify your entitlement, ring the Pension Credit helpline on 0800 99 1234 or use the GOV.UK Pension Credit calculator here to discover how much you could receive.