DWP explains benefit ‘you need to claim’ to get £300 cash boost | Personal Finance | Finance

August 9, 2024 3,139

Britons are being urged to check if they qualify to claim the DWP’s Pension Credit this year, to be eligible for the annual Winter Fuel Payment.

The Winter Fuel Payment helps pensioners with heating bills during the winter, providing between £100 and £300 to those who meet the criteria.

The benefit was previously available to all pensioners in England and Wales born before a certain date. However, Chancellor Rachel Reeves announced that from this year, only pensioners receiving means-tested benefits will qualify.

One of these qualifying benefits is the Department for Work and Pensions (DWP) Pension Credit, which is believed to be significantly underclaimed.

This makes now an important time to check eligibility for it, as it can unlock major financial support for the upcoming winter months.

In a recent post on X, the DWP wrote: “#PensionCredit exists to help the poorest pensioners – but you need to claim.

“Check online to find out if you, a relative or a friend could be eligible for the additional support that Pension Credit provides.”

What is Pension Credit?

Pension Credit is a benefit distributed by the DWP to low-income pensioners and is separate from the state pension.

People can receive this even if they have other income, savings, or own their own home, however, they must claim it. It is not paid automatically.

How much is Pension Credit?

Pension Credit works to top up people’s weekly income to £218.15 if they’re single, or joint weekly income to £332.95 if they have a partner.

However, people may qualify for extra amounts if they’re a carer, severely disabled, or responsible for a child or young person. This is known as Guarantee Credit.

For example, those who are severely disabled could get an extra £81.50 a week if they receive certain qualifying benefits, or carers can qualify for an additional £45.60 a week. The full list of extra payments can be found here.

To claim, a person must live in England, Scotland or Wales and have reached the state pension age (66 and over). They or their partner must also receive housing benefit.

If this applies, the person must then work out their total weekly income. This is calculated to include the person’s state pension, other pensions, earnings from employment and self-employment, and most social security benefits, for example, Carer’s Allowance.

People are most likely to be eligible for Pension Credit if their total weekly income is roughly under £220. However, if their income is higher, they might still be eligible.

Claimants can start their application up to four months before they reach State Pension age.

People can apply any time after, but their application can only be backdated by three months. This means people can get up to three months of Pension Credit in their first payment if they were eligible during that time.

The benefit can be applied for online, by phone or by post.

If successful, people may then qualify for the Winter Fuel Payment.

Winter Fuel Payment rates

The DWP says people will get a letter in October or November telling them how much Winter Fuel Payment they’ll get if they’re eligible.

The amount people receive is based on when they were born and their circumstances between September 16 and September 22, 2024. This is called the ‘qualifying week’.

Any money people get is tax-free and will not affect their other benefits.

Those who live alone will get either: