Pension credit is an additional benefit paid to those on the lowest incomes to help them survive, and these people will still get the winter fuel payment.
But pension credit has an “unacceptably low uptake” at just 63%, according to charity Independent Age.
Up to £2.1bn in pension credit went unclaimed in the financial year ending 2022, the most recent government estimates found.
That means up to 880,000 older people who could be eligible missed out, and they would consequently miss out on the upcoming winter fuel payment.
Pensioner Yvonne Bailey previously told the Big Issue about how it took her too long to realise she was eligible for pension credit, meaning that she struggled financially.
“I’m a great advocate for people to apply and that’s why I’m trying to help with raising awareness about that,” she said. “People are entitled. You’ve worked all your life and you’ve paid in all your life.”
Labour has started a drive to make more people aware of pension credit and encourage them to apply, but there are fears that it will not be enough.
Research from the End Fuel Poverty Coalition found application processing times had risen from six weeks at the start of August to nine weeks, meaning pensioners may face delays in receiving payments and should apply sooner rather than later.
Here, we have outlined everything you need to know about pension credit, including who is eligible, how much you can get, when it might be paid and what we know about the winter fuel payment in 2024.
What is pension credit?
Pension credit gives low-income pensioners extra money to help with the cost of living – including essentials like food and heating, as well as housing costs like rent or service charges.
It’s a separate benefit from your state pension, and you can get it even if you have savings, your own home or another income.
Pension credit comes in two parts: the guarantee credit and savings credit. The guaranteed element tops up your income to a guaranteed minimum level, and savings credit is extra money if you have extra savings or your income is higher than basic statement.
How much is pension credit?
The average pension credit award is worth over £3,900 per year, and it means you can access more support like the winter fuel payment, as well as help with housing costs, council tax and heating bills.
The ‘guaranteed credit’ part of pension credit tops up your weekly income to £218.15 if you are single. If you have a partner, it tops up your income to £332.95.
This means that the amount you get in pension credit varies depending on your income – which includes earnings, state pension and some other benefits.
You might be able to get more if you have a disability, you are a carer, you have some savings or housing costs.
You could get an extra £81.50 each week if you receive attendance allowance, disability living allowance (DLA), personal independence payment (PIP), armed forces payment, or the daily living component of adult disability payment at the standard or enhanced rate.
You could get an extra £45.60 each week if you carer’s allowance or carer support payment.
If you’re responsible for children or young people under the age of 20, it could be an extra £66.29. For young people aged between 16 and 20, they must be in approved training or education. If you get tax credits, you cannot get this extra amount because you might be eligible for child tax credits.
If the child is disabled, you could get £35.93 each week if they get DLA, PIP or ADP. And an extra £112.21 each week if they are blind or they get the highest rate care component of DLA or CDP, or the advanced daily living component of PIP or ADP.
For the savings credit part of state pension, you could get up to £17.01 a week if you’re single, or £19.04 if you have a partner. You might still get savings credit even if you do not get the guarantee part of pension credit.
Use the government’s pension credit calculator to work out how much you might get and if you are eligible. You can also contact Citizens Advice or Age UK if you are confused over whether you might be eligible.
Who is eligible for pension credit?
People have to be on a low income, living in England, Scotland or Wales and have reached state pension age to qualify for pension credit. There is a separate scheme for pension credit in Northern Ireland.
You usually have to have an income less than £218.15 if you are single and less than £332.95 if you have a partner – because this is the amount that that pension credit tops your income up to.
Income includes your state pension, other benefits and any earnings. Not all benefits are counted as income – including adult disability payment, attendance allowance, DLA, child benefit, PIP, housing benefit and council tax reduction.
If you have a disability, caring responsibilities or housing costs, you may be able to have a greater income and still get pension credit.
You can still get pension credit if you have savings or investment of less than £10,000. If you have more than £10,000, every £500 over £10,00 counts as £1 of income per week. For example if you have £11,000 in savings, that counts as £2 income per week.
If you have a partner (a person you live with as a couple, or you are married to or in a civil partnership with), you must either have both reached state pension age or one of you must be getting housing benefit for people over the state pension age.
You may be able to get pension credit if you are from the EU, Switzerland, Norway, Iceland or Liechtenstein and you have settled or pre-settled status under the EU settlement scheme.
You can continue to get pension credit if you are away from the Great Britain for four weeks or less. For more than four weeks, special circumstances apply including the death of a close relative or medical treatment.
For the savings credit part of state pension, you have to have reached state pension age before 6 April, 2016 and have saved some money for retirement, including a personal or workplace pension.
How to apply for pension credit in 2024
You can apply online to get pension credit – and can start your application up to four months before you reach state pension age.
You’ll need your national insurance number, information about income and savings, bank account details and those of your partner when you apply for pension credit.
You can apply via phone through the pension credit claim line on 0800991234 or via textphone 08001690133. There is also Relay UK or British Sign Language video relay service.
To apply by post, print out and fill in the pension credit claim form or call the claim line to request a form. You should post it to Freepost DWP Pensions Service 3 – you don’t need a postcode or a stamp.
Contact Citizens Advice or Age UK if you need help with applying.
Who is eligible for the winter fuel payment in 2024?
The winter fuel payment will be paid to people on pension credit or other means-tested benefits, including income support and income-related jobseeker’s allowance.
You also have to be of a certain age. Last year, you could get the winter fuel payment if you were born before 25 September, 1957.
The full details of the eligibility criteria for next year’s winter fuel payment for the winter months 2023/2024 are yet to be announced.
How much is the winter fuel payment in 2024?
The winter fuel payment ranges between £100 and £300 depending on your circumstances, and this is all tax-free.
Last year, the winter fuel payment was more because it included a pensioner cost of living payment (worth between £150 and £300) and this is not expected to be continued this year.
How to apply for winter fuel payment in 2024
Most people get the winter fuel payment automatically if they’re eligible. You should get a letter in October or November telling you how to make the claim.
How to check if you could be eligible for other benefits
You could be entitled to other benefits and tax credits. You can use a benefits calculator to find out what you might be entitled to claim – including from Turn2Us,Policy in Practice and entitledto.
Citizens Advice offers information to help people and they can advise you as to what financial support is available from the government to help you. You can also find local advice services here.
The government’s Help for Households website explains what other support you could be eligible for – and we’ve got a round-up of all the cost of living help available to households here.
What other help can you get if you get pension credit?
If you get pension credit, you might also be entitled to another form of help – including housing benefit, a council tax discount, a free TV licence if you’re over the age of 75, help with NHS dental treatment, glasses and transport costs, help with heating costs through the warm home discount scheme, and a discount on the Royal Mail redirection service if you move house.
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