Pensioners could be in line for a £300 boost under plans by MPs. Prime Minister Keir Starmer and Chancellor Rachel Reeves, have revealed plans for a cooperation between the Department for Work and Pensions (DWP) and local councils to make sure that older people on Housing Benefit get checked for Pension Credit eligibility.

The move is part of Labour’s endeavour to boost Pension Credit uptake which opens the doors to benefits including the Winter Fuel Payment. This would mean more people would qualify for the payment, which could see up to £300 added to annual income.

Recent figures from the DWP indicate that by end of May, upwards of 1.1 million elderly were claiming Housing Benefit. Almost 1.4 million pensioners receive Pension Credit’s additional yearly financial assistance that amounts to around £3,900.

The Chancellor previously made it clear: “We are working with organisations such as Age UK and local authorities. All local authorities.”

Ms Reeves added: “The Department for Work and Pensions will also bring together the administration of Pension Credit and Housing Benefit, so that pensioner households receiving Housing Benefit will also receive any Pension Credit they are entitled to – something the previous Government deferred for years, despite knowing that the poorest pensioners were missing out”.

At Wednesday’s Prime Minister’s Questions, Sir Keir Starmer told MPs that the Labour Government has been making tough economic calls to stabilise the countrys economy. This includes means-testing the Winter Fuel Payment, reports the Daily Record.

This policy change will see roughly 10 million Brits of State Pension age missing out on the annual sum they’re used to getting towards their heating costs, with amounts ranging between £100 and £300. Currently, it’s expected that around 1.5 million people will reap benefits from this payment this year; however, nearly 900,000 eligible pensioners aren’t claiming the support they can claim.

Tackling the matter of unclaimed benefits, Sir Keir said: “Some 880,000 pensioners are not taking up Pension Credit, and we intend to turn that around. We will align Housing Benefit and Pension Credit – something the previous Government deferred year after year – and, because of our commitment to the Triple Lock, pensions are projected to increase by over £1,000 in the next five years.”

Alarm bells are also ringing over the apparent absence of a thorough review into how these changes may impact fuel poverty stats as winter approaches. Labour MP Mary Glindon has raised a query to the Secretary of State for Energy Security and Net Zero about whether the government plans to evaluate the “potential impact of means testing the winter fuel payment on levels of fuel poverty in the winter of 2024-25”.

Energy Consumers Minister Miatta Fahnbulleh MP addressed the issue in a written response, stating: “The Department has not made an assessment of the potential impact of means testing the Winter Fuel Payment on levels of fuel poverty in winter 2024-25.”

She also noted that a statistical report forecasting the fuel poverty rates among recipients of the Winter Fuel Payment in 2023, as well as how new eligibility rules would affect these figures, will be released in the future.

Housing Benefit alignment with Pension Credit highlighted

Following a trial last summer, DWP reached out to thousands of pensioner households encouraging them to apply for Pension Credit through a letter-writing campaign, utilizing data sourced from local councils.

This initiative could signal the Department’s intention to reconcile differences between Housing Benefit and Pension Credit.

Current figures show that across Great Britain, 1,359,976 individuals claim Pension Credit, while pensioner Housing Benefit claims stand at 1,145,642, a disparity of 214,334.

It is crucial to remember that Housing Benefit is considered a legacy benefit and is currently transitioning claimants to Universal Credit.

Here’s a brief guide on Pension Credit, including who should check their eligibility, how to apply, and the potential benefits. It’s worth noting that even a Pension Credit award of just £1 per week can unlock additional financial support, such as Winter Fuel Payments.

The fastest way to check your eligibility for Pension Credit

Elderly individuals, or their friends and family, can swiftly verify their eligibility and get an estimate of potential benefits using the online Pension Credit calculator available on GOV. UK.

Alternatively, pensioners can directly contact the Pension Credit helpline to make a claim at 0800 99 1234 – lines are open from 8am to 6pm, Monday to Friday.

Expert advice is also accessible from:

A quick look at Pension Credit

Pension Credit provides extra funds to assist with living costs for those over State Pension age and on a low income. It can also grant access to a variety of other benefits.

The benefit increases income to a minimum of £218.15 per week for single pensioners and £332.95 for couples – more if an individual has a disability or caring responsibilities.

Those with a severe disability, carers, and those responsible for a child or young person living with them could receive additional funds.

Additional assistance if you qualify for Pension Credit

If you’re eligible for Pension Credit, you can also receive 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 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 eligibility for means-tested benefits.

This implies they can’t claim Pension Credit or pension age Housing Benefit until both partners reach State Pension age. Prior to this change by the DWP, a mixed age couple could qualify to claim the more generous State Pension age benefits when just one partner reached State Pension age.

Here’s how to use the Pension Credit calculator

To utilise the calculator on GOV. UK, you’ll need details of:

  • earnings, benefits and pensions.
  • savings and investments.

You’ll require the same information for your partner if you have one. You will be presented with 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’ve answered these questions, a summary screen displays your responses, allowing you to go back and alter any answers before submitting. The Pension Credit calculator then shows how much benefit you could receive each week.

All you have to do next 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:

  • are deferring your State Pension.
  • own more than one property.
  • are self employed.
  • 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:

  • your National Insurance number.
  • information about your income, savings and investments.
  • 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:

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.

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