Pensioners could miss monthly payment under strict DWP rule | Retirement | Finance
More than one million pensioners in the UK need to be aware of a Department for Work and Pensions (DWP) rule that could see them missing out on a monthly payment. Failling to alert the Government body to any holidays could result in a penalty.
Pension Credit provides an average of £4,200 annually to top up the income of those aged 66 and over who are on a budget. Beyond just a financial boost, this means-tested benefit also opens doors to Council Tax cuts and assistance with heating costs, featuring Winter Fuel Payments.
Yet, many of the 1.4 million recipients may not realise that a straightforward call to the DWP is necessary if they’re considering a getaway from mainland Britain at any point this year.
As reported by the Daily Record, the advice provided on GOV.UK is clear: you must notify DWP “if you’re going to leave Great Britain for any reason at all, even if you’ll only be away for a short time.
“This includes if you go to Northern Ireland, the Isle of Man or the Channel Islands”.
Delving further into the DWP guidelines reveals: “We may pay Pension Credit for up to four weeks while you’re temporarily away from Great Britain and we may pay for up to eight weeks if the absence is in connection with a death.”
In addition, it highlights: “If the absence is solely in connection with medical treatment or medically approved convalescence, we may pay Pension Credit for up to 26 weeks.
“But you should tell us before you go if you’re going to leave Great Britain for any reason at all, even if you’ll only be away for a short time. This includes if you go to Northern Ireland, the Isle of Man or the Channel Islands.”
Comprehensive instructions on how to notify a change in circumstances are available on GOV.UK here.
Recent data from the DWP indicates that approximately 760,000 eligible individuals are not claiming Pension Credit, despite potentially qualifying for it.
Many seniors assume they wouldn’t qualify for this means-tested benefit due to having savings or owning property, yet it can offer additional help with housing costs, heating bills, and Council Tax. Even a minimal award of £1 per week could provide access to further assistance.
Who can claim Pension Credit?
Pension Credit comes in two forms: Guarantee Credit and Savings Credit. To be eligible for Guarantee Pension Credit, you must have reached State Pension age (66) and your weekly income must be below the minimum amount the UK Government deems necessary for living.
The threshold stands at £218.15 for single individuals and £332.95 for couples, with potential increases for those who are disabled, act as carers, or have specific housing expenses.
Savings Credit is accessible only if you reached State Pension age before April 6, 2016, or if your partner reached State Pension age before this date and was already receiving it, you might be eligible. Additionally, you need to have a qualifying income of at least £189.80 a week for a single person and £301.22 a week for a couple.
So, how much could you receive from the Department for Work and Pensions (DWP)?
Guarantee Credit can top up your weekly income to:
- £218.15 for a single person.
- £332.95 for a couple (whether married, in a civil partnership or cohabiting).
You may be able to receive more than this if you’re disabled, a carer, or have certain housing costs.
Savings Credit can provide you with up to:
- £17.01 a week for a single person.
- £19.04 a week for a couple (whether married, in a civil partnership or cohabiting).
The exact amount you’ll receive depends on your income and savings. Your income includes assumed income from savings and capital over £10,000.
Older individuals, or their friends and family, can quickly verify their eligibility and get an estimate of what they may receive by using the online Pension Credit calculator on GOV.UK here.
Alternatively, pensioners can reach out to the Pension Credit helpline directly to make a claim on 0800 99 1234 – lines are open from 8am to 6pm, Monday to Friday.
