Pensioners and their loved ones are being encouraged to “take five minutes” to see if they’re missing out on an additional £3,900 annually from the Department for Work and Pensions (DWP). Amidst the government’s contentious plans to overhaul the Winter Fuel Payment eligibility, currently worth £200 to £300 per year, the Chancellor, Rachel Reeves, has proposed changes to restrict the benefit solely to pensioners on means-tested benefits like Pension Credit.
It’s worth checking whether you or a family member could claim (Image: PA)
This alteration could slash the number of recipients by about nine million, sparking fierce backlash, particularly from Age UK, which is actively campaigning against the proposal. Nevertheless, the Labour administration insists that the reform is vital to plug a “£22billion black hole” in the nation’s budget. It has urged pensioners to check their eligibility for Pension Credit, saying that many entitled individuals have yet to claim it.
Now, an English council has reinforced this message. In an email to its residents on Friday, Cornwall Council said: “£3,900 for five minutes of your time? Help spread the word to anyone you know over State Pension age that they could be missing out on extra money.”
“Spending five minutes using the government’s online ‘can I claim Pension Credit? ‘ checker tool and find out if they’re entitled to extra support. They might be allowed to claim even if they: have savings, own their own home, are working, are getting a small occupational pension, have been turned down in the past.”
The email then encouraged individuals to utilise the DWP tool.
How to determine eligibility for Pension Credit and the Winter Fuel Payment
The DWP explains that when applying for Pension Credit, your income is assessed. If you have a partner, your combined income is taken into account.
Pension Credit boosts:
- your weekly income to £218.15 if you’re single
- your joint weekly income to £332.95 if you have a partner
The DWP revealed that Pension Credit provides an average additional £3,900 annually. Even with a higher income, you may still qualify for Pension Credit if you have a disability, care for someone, have savings or housing costs.
Pension Credit can top up incomes (Image: PA)
What constitutes income
Your income encompasses:
- State Pension
- other pensions
- earnings from employment and self-employment
- most social security benefits, for example Carer’s Allowance
What does not constitute income
Not all benefits are considered income. For instance, the following are not included:
- Adult Disability Payment
- Attendance Allowance
- Christmas Bonus
- Child Benefit
- Disability Living Allowance
- Personal Independence Payment
- social fund payments like Winter Fuel Allowance
- Housing Benefit
- Council Tax Reduction
What you’ll receive
Pension Credit boosts:
- your weekly income to £218.15 if you’re single
- your joint weekly income to £332.95 if you have a partner
Additional amounts may be provided if you have other responsibilities and costs. These top-ups and extra amounts are referred to as ‘Guarantee Credit’.
If you have a severe disability
You could receive an additional £81.50 per week if you qualify for any of the following:
- Attendance Allowance
- the middle or highest rate from the care component of Disability Living Allowance (DLA)
- the daily living component of Personal Independence Payment (PIP)
- Armed Forces Independence Payment
- the daily living component of Adult Disability Payment (ADP) at the standard or enhanced rate
If you care for another adult
An extra £45.60 per week could be yours if:
- you get Carer’s Allowance
- you get Carer Support Payment
- you’ve claimed Carer’s Allowance but are not being paid because you already get another benefit paying a higher amount
If you’re responsible for children or young people
You could get an extra £66.29 a week for each child or young person you’re responsible for. This is increased to £76.79 a week for the first child if they were born before 6 April 2017. The child or young person must normally live with you and be under the age of 20.
If they’re 16 or over and under 20, they must be in (or accepted for):
- approved training, such as Foundation Apprenticeships
- a course of non-advanced education (for example, they’re studying for GCSEs or A levels)
If they’re in education, it must be for more than 12 hours a week on average. If you get Tax Credits, you cannot get this extra amount of Pension Credit for caring for a child. But you might be eligible for Child Tax Credits.
If the child or young person is disabled
If the child or young person is disabled, you could also get an extra amount of either:
- £35.93 a week if they get DLA, PIP or ADP
- £112.21 a week if they’re blind or they get the highest rate care component of DLA or CDP, or the enhanced daily living component of PIP or ADP
If you have housing costs
You could get an extra amount to cover your housing costs, such as:
- ground rent if your property is a leasehold
- some service charges
- charges for tents and site rents
The amount you could get depends on your housing costs.
If you get Pension Credit, you could also be eligible for:
- Council Tax Reduction
- Housing Benefit if you rent the property you live in
- Support for Mortgage Interest if you own the property you live in
If you have savings or a second pension
You could get the ‘Savings Credit’ part of Pension Credit if both of the following apply:
- you reached State Pension age before 6 April 2016
- you saved some money for retirement, for example a personal or workplace pension
You’ll get up to £17.01 Savings Credit a week if you’re single. If you have a partner, you’ll get up to £19.04 a week. You might still get some Savings Credit even if you do not get the Guarantee Credit part of Pension Credit.
Other help if you get Pension Credit
If you get Pension Credit you’ll automatically get cold weather payments.
You’ll also be eligible to:
- apply for a free TV licence if you’re aged 75 or over
- get help with NHS costs if you get the Guarantee Credit part of Pension Credit
NHS costs can include things such as prescriptions, dental treatment, glasses and transport costs for hospital appointments.
