Independent Age has highlighted that many older individuals in the UK are missing out on essential benefits and financial support they are entitled to. This assistance could significantly ease the burden of the ongoing cost-of-living crisis. A recent report revealed that 8,500 advanced Pension Credit claims were submitted to the Department for Work and Pensions (DWP) during the last week of 2024.
This article outlines the importance of Pension Credit, tips for claiming, eligibility criteria, potential financial benefits, and additional support available for those who qualify.
DWP Received 8,500 ‘Advanced’
| Key Details | Information |
|---|---|
| Benefit Name | Pension Credit |
| Eligibility | Individuals aged 66+ with income below specified thresholds |
| Components | Guarantee Credit and Savings Credit |
| Maximum Weekly Amount | £218.15 (single), £332.95 (couples) |
| Additional Benefits | Housing Benefit, Council Tax Discount, free TV license, NHS support, heating assistance |
| Claim Backdate | Up to 3 months |
| Contact for Help | Pension Credit helpline: 0800 99 1234; Independent Age helpline: 0800 319 6789 |
| Official Website | Pension Credit on GOV.UK |
What Are Advanced Pension Credit Claims?
Advanced Pension Credit claims allow individuals to apply for Pension Credit up to four months before reaching the State Pension age of 66. Pensions Minister Emma Reynolds confirmed that 8,500 such claims were submitted in the final week of December 2024.
Fran McSweeney, Head of National Services at Independent Age, emphasized the importance of Pension Credit in topping up income to a minimum standard. This benefit not only enhances income but also provides access to additional financial support for health and housing expenses.
Key Benefits of Pension Credit
Once eligible for Pension Credit, individuals gain access to:
- NHS dental treatment and glasses support.
- Council Tax reductions and housing cost assistance.
- Additional financial help if you are a carer or have a disability.
Independent Age’s Top Five Tips for Claiming Pension Credit
1. Check Your Eligibility
Use the Pension Credit calculator on the GOV.UK website or call the Pension Credit helpline at 0800 99 1234 to verify eligibility. Even if you own your home or have savings, you may still qualify as the first £10,000 of savings are not considered.
2. Apply Early
You can submit your claim up to four months before reaching State Pension age. Early applications ensure timely access to benefits.
3. Backdate Your Claim
Claims can be backdated by up to three months if you were eligible during that period.
4. Gather Necessary Information
Prepare details about your income, savings, and any other benefits you’re receiving to streamline the application process.
5. Contact Independent Age for Help
For assistance, contact Independent Age’s helpline at 0800 319 6789 or email helpline@independentage.org.
Eligibility for Pension Credit
Pension Credit has two components: Guarantee Credit and Savings Credit.
Guarantee Credit Eligibility
- You must be at least 66 years old (State Pension age).
- Your weekly income must be below the government threshold of:
- £218.15 for a single person.
- £332.95 for couples (married, in a civil partnership, or cohabiting).
Savings Credit Eligibility
You qualify if:
- You or your partner reached State Pension age before April 6, 2016.
- Your income is at least:
- £189.80 per week for a single person.
- £301.22 per week for couples.
How Much Could You Receive?
Guarantee Credit
- Up to £218.15 weekly for a single person.
- Up to £332.95 weekly for couples.
Savings Credit
- Up to £17.01 weekly for a single person.
- Up to £19.04 weekly for couples.
Exact amounts depend on your income and savings, including assumed income from savings exceeding £10,000.
Additional Support for Pension Credit Recipients
If you qualify for Pension Credit, you may also access:
- Housing Benefits: For renters.
- Council Tax Discounts: Significant reductions.
- Free TV Licence: For individuals aged 75 and over.
- NHS Assistance: Dental treatment, glasses, and hospital transport cost help.
- Heating Support: Through schemes like the Warm Home Discount and Winter Fuel Payment.
- Postal Discounts: Reduced Royal Mail redirection costs when moving house.
Mixed-Age Couples and Pension Credit
Since May 2019, mixed-age couples (where one partner is under State Pension age) are treated as a working-age couple for means-tested benefits. They are ineligible for Pension Credit until both partners reach State Pension age.
How to Use the Pension Credit Calculator
The Pension Credit calculator on GOV.UK helps estimate your potential benefit. To use it, you’ll need details of:
- Earnings, pensions, and benefits.
- Savings and investments.
- Information for your partner (if applicable).
After answering the questions, the tool provides a summary and an estimate of your weekly Pension Credit. You can print the results to assist with your application.
Who Cannot Use the Calculator?
You cannot use the tool if you:
- Are deferring your State Pension.
- Own multiple properties.
- Are self-employed.
- Have unique housing costs not covered by standard criteria.
How to Make a Claim
When to Apply
- Start your application up to four months before reaching State Pension age.
- Claims can be backdated by up to three months if eligible.
Information Required
- Your National Insurance number.
- Income, savings, and investment details.
- Bank account details (for phone or postal claims).
How to Apply
- Online: For those who have claimed State Pension and have no dependent children.
- Phone: Call the Pension Credit helpline at 0800 99 1234.
For more information, visit the Pension Credit page on GOV.UK.
Frequently Asked Questions (FAQs)
1. What is the purpose of Pension Credit?
Pension Credit provides financial support to individuals aged 66+ whose income falls below a government-set threshold.
2. Can I apply if I have savings or own a home?
Yes. The first £10,000 of savings is not counted, and owning a home does not automatically disqualify you.
3. Can I claim Pension Credit as part of a mixed-age couple?
No, unless both partners have reached State Pension age.
4. How long does it take to process a claim?
Processing times vary but applying early ensures you receive benefits promptly.
5. How do I calculate my entitlement?
Use the Pension Credit calculator on GOV.UK for an estimate.
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