Countless pensioners could be due a boost from the DWP to the tune of £4,000 a year
Pension Credit, a benefit offering additional support for those grappling with living costs beyond the state pension age, is one of the most underclaimed benefits from the Department for Work and Pensions. Following last year’s changes to Winter Fuel Payment eligibility, which heightened awareness of the support available, thousands of pensioners made claims and received necessary assistance.
However, recent figures reveal that this surge has now subsided, with a 16% drop in applications compared to last year. One expert has cautioned eligible households against delaying their claims as they could be due up to £4,300 a year.
Lisa Picardo, Chief Business Officer UK at PensionBee, commented: “With around 700,000 eligible pensioner households still missing out on support worth up to £4,000 a year according to the Work and Pensions Committee, the scale of the challenge is undeniable.
“Pension Credit is not only vital extra income for some of the most vulnerable older people, it is also a gateway to further help such as cost of living payments and winter fuel payments.
Low take-up rates, which have hovered between 61% and 66% for over a decade according to the government’s own data, underline how urgently we need clearer communication, simpler claims processes and a joined-up national strategy to ensure every eligible household receives what they are entitled to.”
She urged eligible pensioners to take action: “No one should face pensioner poverty because of an administrative barrier or lack of awareness. Today’s figures show that despite the expansion of the Winter Fuel Payment last summer delivering a clear boost to Pension Credit claims, momentum is already fading, with new claims down 16% so far compared to the equivalent period last year. “
Pension Credit is designed to supplement income for those on low earnings above the state pension age. For single people, it can increase your weekly income to as much as £227.10.
Couples could qualify for a combined weekly income boost of up to £346.60. These amounts are referred to as the guarantee credit.
Pension Credit also includes a savings component offering up to £17.30 weekly for single people and up to £19.36 weekly for couples. You may qualify for this component if you reached state pension age before April 6, 2016 and put aside money for retirement, such as through an employer pension scheme.
Pension Credit also unlocks access to additional benefits, reductions and perks to help alleviate cost of living pressures. This encompasses housing benefit, Winter Fuel Payment, council tax reductions and a complimentary TV licence for those over 75.
People who are carers, severely disabled or looking after a child or young person may qualify for additional payments. The severe disability supplement can deliver an extra £82.90 weekly if you’re receiving specific disability benefits.
Carers who are in receipt of Carer’s Allowance or Carer Support Payment can bag an additional £46.40 per week, and those caring for a person under the age of 16 can pocket an extra £67.42 per week for each child they care for. If the first child was born before 6 April 2017, this can rise to £78.10 for that child.
Your savings, income and investments will be taken into account and impact eligibility for this means-tested benefit. More details can be found on Gov.uk.