Around 10 million people over State Pension age, including 850,000 in Scotland, will not be eligible for the Winter Fuel Payment due to the change in eligibility rules. Only those in receipt of a means-tested benefit such as Pension Credit will qualify for the annual heating bill help, worth between £100 and £300.
This means that it is more important than ever for pensioners – and friends and family members – to make sure they are not missing out. The Department for Work and Pensions (DWP) estimates that 760,000 pensioner households may be entitled to an average annual income boost of £3,900, but do not claim it as they wrongly believe that because they have savings or own their own home they would not be eligible for Pension Credit.
Pension Credit can provide a top-up for single people on the New State Pension who have a total weekly income below £218.15, or couples with a combined weekly income of less than £332.95.
Similarly, people over 65 who reached State Pension age before April 6, 2016, may still qualify for Pension Credit if their weekly income is less than £260.68 for singles, or £380.55 for married couples or those in a civil partnership.
To receive this year’s Winter Fuel Payment, older people need to make a new claim for Pension Credit before December 21, 2024 – if it’s successful, they will receive a backdated Winter Fuel Payment.
There are currently 1.4 million people receiving additional financial support through Pension Credit, including over 125,000 living in Scotland.
Barriers to claiming Pension Credit
The DWP aims to break down barriers to claiming and busts some of the most common myths people may have to encourage them to think again about applying.
Older people may wrongly think they are not eligible because they:
- have savings
- own their own home
- may be working
- may be getting a small occupational pension
- may have been turned down in the past
Other factors may be that they:
- do not want to be seen as needing to claim
- feel that they’re able to manage
- do not think it’s worth applying – as the amount they get will be very small
- do not recognise themselves as a Pension Credit claimant
- have not got around to it
- think it’s a complex and confusing subject
- already get other help and do not want to mess up the benefits they are getting
Eight Pension Credit myths busted
Having listed some of the main reasons people of State Pension age may be put off from claiming Pension Credit, the DWP has also busted eight common myths about the benefit.
They do not think they will be eligible for Pension Credit
- False – some 1.4 million older people across Great Britain, including over 125,000 living in Scotland currently receive the extra financial support.
They would get so little that it’s not worth claiming
- False – DWP says the average Pension Credit payment is actually over £75 per week – that’s well over an extra £3,900 per year. Plus, getting Pension Credit can provide a passport to help with things like rent, Council Tax, Winter Heating Payment (Scotland only), Cold Weather Payments (not Scotland) and a free TV licence for people aged 75 and over.
They have savings, so will not qualify
- False – DWP explains that people can have savings or another pension and still get extra money. Unlike other income related benefits like Universal Credit, there is no capital cut-off limit and for Pension Credit savings of under £10,000 are ignored.
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They own their own home, so will not qualify
- False – DWP explains that homeowners can get Pension Credit too and that almost half of the people who get Pension Credit own their own home.
They are not eligible for Pension Credit – it’s for ‘old’ people
- False – People can claim as soon as they reach the qualifying age, which is now State Pension age – 66 for both men and women.
They cannot get a State Pension, so they will not be eligible
- False – DWP said that they may be entitled to Pension Credit – even if they’re not entitled to a State Pension.
They have been turned down for Pension Credit before, so it’s not worth applying again
- False – DWP said that personal circumstances could have changed and their income or capital may have changed as a result. The first £10,000 of savings will be ignored when working out if someone can get Pension Credit.
It is too complicated and claiming is not worth the effort
- False – DWP has simplified the process and people can claim with one free phone call to the Pension Credit claim line. However, there are other ways to claim such as a paper claim form, which can be downloaded from the GOV.UK website or an online claim can be made – find out more here.
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.
Expert help and advice is also available from:
Below is an overview of the benefit including who should check eligibility, how to go about it and how much you could get.
Pension Credit in a nutshell
Pension Credit gives people extra money to help with their living costs if they are over State Pension age and on a low income. It can also provide access to a range of other benefits.
The benefit tops up income to a minimum of £218.15 per week for single pensioners and £332.95 for couples – more if a person has a disability or caring responsibilities.
An award of just £1 per week is enough to unlock other support, including Winter Fuel Payments.
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 and Winter Fuel 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 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:
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earnings, benefits and pensions
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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:
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are deferring your State Pension
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own more than one property
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are self employed
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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:
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your National Insurance number
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information about your income, savings and investments
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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:
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you have already claimed your State Pension
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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.