Thousands of pensioners missing out on £4,300 boost from DWP | Personal Finance | Finance
Pension Credit is a financial lifeline for people over the state pension age who are grappling with a low income. It also assists with housing costs and unlocks a plethora of freebies, discounts and benefits for eligible households that claim their entitlements.
This pension supplement could potentially offer an average boost of around £4,300 in this financial year. However, according to official government figures, approximately 760,000 people who qualify for Pension Credit have yet to lodge their claim with the Department for Work and Pensions (DWP).
Currently, about 1.4 million people across the UK are receiving this benefit, as per DWP data. The department has also recently confirmed that nearly 78% of all new claims are being processed within the target timeframe of 50 working days.
Applications can be backdated by up to three months. This means that recipients could receive up to three months’ worth of Pension Credit in their first payment if they were eligible during that period.
Retirees can apply online using their:
- National Insurance number
- Income, savings and investment information
- Income, savings and investments information on the date they want their payments backdated for
Applications can also be made via post or over the phone, and a friend or family member can make the call on your behalf if you’re unable to use the phone.
To be eligible, you must reside in England, Scotland or Wales and have reached State Pension age. The benefit is means-tested, and your income will be assessed as part of your application.
If you’re applying and have a partner, they must be included in your application. This applies even if you’re cohabiting as a couple without being married or in a civil partnership.
To qualify for Pension Credit, your weekly income must be less than £227.10 if you’re single, and less than £346.60 if you have a partner. Even with a higher income, you might still be eligible for Pension Credit if you have a disability, housing costs, or are caring for someone.
Pension Credit will boost your weekly income to these rates, with the average claimant pocketing £4,300 annually.
Savings or investments exceeding £10,000 will impact your Pension Credit claim. Every £500 over this amount is considered as £1 income per week.
For instance, savings worth £11,000 will be calculated as £2 of income per week.
The official Gov.uk website offers a Pension Credit calculator where people can verify their eligibility and get an estimate of how much they could receive from the DWP.
