Pension Credit warning as nearly 800,000 Brits missing out on £3,900 benefit | Personal Finance | Finance
Pensioners are being urged to make sure they apply for Pension Credit as soon as possible.
A surge in the number of pensioners claiming the benefit, which allows them to become eligible for the annual winter fuel payment, is only the tip of the iceberg, experts claim.
Over 90,000 more people applied for Pension Credit in the four months after the chancellor Rachel Reeves announced she was making the winter fuel allowance payment means tested.
Pensioners have to be on a low income and claiming pension credit to qualify for the allowance.
In August this year the government said 880,000 households could be missing out on over £3,900 a year in Pension Credit payments.
Since then a further 161,800 claims, although 81,500 of those were turned down.
Rosie Hooper, chartered financial planner at Quilter Cheviot, said the Freedom of Information (FOI) data the company had obtained appeared to show the DWP had spent just £253,954.92 on advertising spend related to pension credit in a bid to increase take up.
“While it is understandable that the government aims to maintain the savings from cutting the winter fuel payment, it is surprising that only £250,000 has been allocated to the pension credit advertising campaign, given the importance of reaching those in need.
This amount represents just 0.018 per cent of the £1.4bn saved by cutting the winter fuel payment. Although it is positive that more people are applying for pension credit, many are still missing out.
“Anyone who thinks they may be eligible, or anyone with relatives or loved ones over the state pension age who they believe may be entitled, should check the criteria and ensure their application is submitted before 21 December.”
“Those who are eligible would not only benefit by regaining the winter fuel payment, worth either £200 or £300 depending on age, but they would also receive pension credit to top up their income.”
What is Pension Credit
Pension credit guarantees a weekly income of £218.15 if you’re single or £332.95 if you have a partner.
Hooper said: “If you are unsure about your eligibility, an online pension credit calculator can provide an estimate of potential benefits. Applying is simple and can be done online, by printing and completing a paper form, or by calling 0800 99 1234.”
Tom Selby, director of public policy at AJ Bell said anyone over state pension age (66), single and your income is less than £218.15 a week then Pension Credit will top you up to that amount. For a couple, the combined income figure is £332.95.
In relation to Pension Credit, your income includes your state pension, other pensions, employment or self-employment earnings and most social security benefits. As with the state pension, it is up to you to claim Pension Credit.
For those who are entitled to receive it, claiming Pension Credit is also really important because it acts as a gateway to other benefits, such as help with heating costs, housing benefit, dental treatment and free TV licenses (if you are aged 75 or over). The decision to end universal Winter Fuel Payments means it also becomes a gateway to the means-tested Winter Fuel Payment.
Tom Selby, director of public policy at AJ Bell said retirees still have until 21 December to make a Pension Credit application.
“For those who are entitled to receive it, claiming Pension Credit is also really important because it acts as a gateway to other benefits, such as help with heating costs, housing benefit, dental treatment and free TV licenses (if you are aged 75 or over). The decision to end universal Winter Fuel Payments means it also becomes a gateway to the means-tested Winter Fuel Payment.”
