UK Credit

DWP: What is the pension credit and who can benefit from it?

Thousands of people eligible for pension credit could claim an extra £278 each week. Those eligible could also get discounts on other expensive bills, including council tax and TV license fees, reports the Liverpool Echo.

“Pension Credit Awareness Day” will take place on June 15, which urges people who may not know they are eligible to apply with the Department for Work and Pensions (DWP). DWP Minister Guy Opperman MP shared the statistics in a written response to a question about the pension credit from Tory MP Sir John Hayes, who asked how many pensioners in the UK were eligible for the pension credit , but did not ask for the service.

He said: “In Britain there are an estimated 770,000 non-recipients of Pension Credit. We have already undertaken a series of actions to raise public awareness of the pension credit and to increase take-up. »

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He pointed out that “early internal management information suggests that new pension credit claims in the 12 months to December 2021 were approximately 30% higher compared to the 12 months to December 2019”.

He continued: “Earlier this year, we directly targeted over 11 million retirees with information about the Pension Credit and the additional support it can provide in the leaflet accompanying their annual reset notification. However, it is more important than ever to ensure that all eligible retirees claim the vital financial assistance that Pension Credit provides. »

A campaign was launched by the DWP in April with the aim of making more people aware of the pension credit. It is estimated that up to £1.7billion has gone unclaimed.

Pension Credit provides help with daily living costs of up to £182.60 per week for singles and £278.70 for couples, as well as help with rent and council tax, heating bills, free NHS dental care and free TV licenses for over-75s. .

To be eligible for the pension credit, people must be over retirement age and have a low income. More than 1.4 million pensioners across the UK currently receive pension credit.

To check your entitlements, call 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.

Are you eligible? DWP Official Notice:

If you have a partner

You must include your partner in your application.

You will be eligible if:

  • you and your partner have both reached the legal retirement age
  • one of you receives housing benefit for people over state retirement age

A partner is either:

  • your husband, wife or civil partner – if you live with them
  • someone with whom you live as a couple, without being married or in a civil partnership

Your income

When you apply for pension credit, your income is calculated. If you have a partner, your earnings are calculated together.

Recharge of the pension credit:

  • your weekly income at £182.60 if you are single
  • your joint weekly income at £278.70 if you have a partner

If your income is higher, you may still qualify for pension credit if you have a disability, are caring for someone, have savings, or have housing costs.

What counts as income

Your income includes:

  • State pension
  • other retreats
  • income from employment and self-employment
  • most social security benefits, e.g. care allowance

What does not count as income

Not all benefits are considered income. For example, are not counted:

  • Disabled adult payment
  • Attendance allowance
  • Christmas Bonuses
  • Family allowances
  • Disabled allowance
  • Payment for personal independence
  • social fund payments like winter fuel allowance
  • Housing allowance
  • Residence tax reduction

If you deferred your pension

If you are entitled to a personal or occupational pension and have not yet claimed it, the amount you expect to receive still counts as income.

If you have deferred your state pension, the amount of state pension you would get is considered income.

You cannot accumulate additional amounts to defer your state pension if you or your partner have a pension credit.

Your savings and investments

If you have £10,000 or less in savings and investments this will not affect your pension credit.

If you have more than £10,000, every £500 over £10,000 counts as £1 of income per week. For example, if you have £11,000 in savings, this counts as income of £2 per week.

To check your entitlements, call 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.