What is pension credit, and how do you claim it?

Chancellor Rachel Reeves has introduced significant changes to the eligibility criteria for the Winter Fuel Payment, affecting many pensioners. This article provides a detailed overview of the new criteria, pension credit, and additional benefits available to those who qualify.

What is pension credit, and how do you claim it?

What is pension credit?

Pension credit is a means-tested benefit designed to support low-income pensioners and ensure they have enough to cover their everyday living costs.

Get Latest Updates Join Now
  • Income Boost: Provides an average income boost of approximately £3,900 per year.
  • Unclaimed Benefits: Approximately 850,000 eligible pensioners are not claiming it – roughly one in three.

Eligibility for Winter Fuel Payment

The Winter Fuel Payment is a crucial financial aid for pensioners to help with heating bills during the colder months.

  • New Criteria: Only households with someone over state pension age (66) and receiving pension credit are eligible.
  • Previous Criteria: In 2023-24, payments worth between £250 and £600, including an extra “cost of living payment,” could be claimed by those born before 25 September 1957.
  • Current Payment:
    • Households with someone over 66 and receiving pension credit: £200
    • Households with someone over 80 and receiving pension credit: £300

Check This

Eligibility Criteria for Pension Credit

Specific criteria must be met to qualify for pension credit, ensuring that the benefit reaches those who need it most.

  • Age Requirement: Must be above state pension age (currently 66).
  • Residency Status: Non-British citizens need settled or pre-settled status under the EU Settlement Scheme.
  • Income Limits:
    • Single pensioners: Weekly income up to £218
    • Couples (both above state pension age): Weekly income up to £332
  • Additional Considerations:
    • Disability or carer status may allow for higher income limits.
    • Savings exceeding £10,000 may reduce the amount of pension credit.

How Much Can You Get?

Pension credit consists of two elements: guarantee credit and savings credit, each providing different levels of financial support.

  • Guarantee Credit:
    • Single: Tops up weekly income to £218.15
    • Couple: Tops up joint weekly income to £332.95
  • Savings Credit:
    • Single: Maximum £17.01
    • Couple: Maximum £19.04
  • Additional Payments:
    • Carer addition: Up to £45.60 a week
    • Severe disability addition: Up to £81.50 a week

How to Make a Claim

Applying for pension credit is straightforward, with multiple methods available to suit different preferences.

  • Online: Via the government website
  • Phone: Call the pension credit claim line on 0800 99 1234
  • Post: Print and fill in a Pension Credit claim form, then send it to Freepost, DWP Pensions Service 3

Required Information:

  • National Insurance number
  • Details of income, savings, and investments

Additional Benefits with Pension Credit

When you start receiving pension credit, you become eligible for a range of additional grants and savings opportunities. These benefits can significantly improve the financial security and well-being of pensioners, providing important support during retirement.

  • Winter Fuel Payment: Up to £300 for eligible pensioners
  • Free TV Licence for Over 75s: Saving £169.50 per year
  • Discounted Broadband: Available from some providers
  • Free Insulation and Boiler Grants: For private tenants and homeowners
  • Reduced Medical Expenses: Free dental care, contributions to new glasses, help with transport to hospital, and free NHS prescriptions
  • Reduced Council Tax: Possible reduction or full payment for those receiving guaranteed credit
  • Warm Home Discount: Help with electricity bills in addition to the Winter Fuel Payment
  • Housing Benefit: Assistance with mortgage payments or rent for those struggling with housing costs

Click the link to know more

Get Latest Updates Join Now