The Department for Work and Pensions (DWP) has guidance for anyone in receipt of a specific benefit who is planning a holiday this year as they could face penalties
Pension Credit recipients planning a getaway this year could find themselves at risk of penalties. More than 1.4 million older Brits across Great Britain are currently on Pension Credit, a benefit delivering an average £4,300 annually in extra financial lifeline for over-66s struggling on low incomes.
This means-tested support also unlocks Council Tax reductions and assistance with energy costs, including access to the Warm Home Discount Scheme. Yet recipients may be unaware they must alert the Department for Work and Pensions (DWP) before travelling beyond mainland Britain – no matter how brief their trip, reports the Daily Record.
Reporting a holiday to the DWP
Official GOV.UK guidance states you must contact the DWP “if you’re going to leave Great Britain for any reason at all, even if you’ll only be away for a short time. This includes if you go to Northern Ireland, the Isle of Man or the Channel Islands”.
This official guidance online came as they addressed this question: “Can I leave Great Britain and keep getting Pension Credit?”
The complete DWP response explains: “We may pay Pension Credit for up to four weeks while you’re temporarily away from Great Britain and we may pay for up to 8 weeks if the absence is in connection with a death.
“If the absence is solely in connection with medical treatment or medically approved convalescence, we may pay Pension Credit for up to 26 weeks.
“But you should tell us before you go if you’re going to leave Great Britain for any reason at all, even if you’ll only be away for a short time. This includes if you go to Northern Ireland, the Isle of Man or the Channel Islands.”
Full details on how to report a change in circumstance can be found on GOV.UK here. Latest figures from the DWP show that there are 760,000 people who could claim Pension Credit but haven’t yet done so, despite being eligible.
A common misconception among pensioners is that having savings or owning property automatically disqualifies them from this means-tested benefit. However, even a minimal award of £1 weekly can open doors to additional financial assistance.
Who is eligible for Pension Credit?
Pension Credit comes in two parts – Guarantee Credit and Savings Credit. To qualify for Guarantee Pension Credit, you must have reached State Pension age, which is currently 66. Your weekly income also needs to be below the minimum amount the UK Government considers necessary for living.
This stands at £227.10 for a single person and £346.60 for a couple. These figures could be higher if you’re disabled, a carer or have certain housing costs.
Savings Credit is only available if you reached State Pension age before April 6, 2016, or if you have a partner who reached State Pension age before this date and was already receiving it.
How to determine eligibility for Pension Credit
Elderly people, or their friends and family, can quickly check eligibility and get an estimate of potential benefits 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 from 8am to 6pm, Monday to Friday.
More details about claiming Pension Credit can be found on GOV.UK here.