As many as a million households are missing out on a weekly boost of around £65 on average, the Department of Work and Pensions (DWP) has estimated. The government department says that some older people incorrectly believe that they are not eligible for Pension Credit because they have savings or own property.
The DWP is encouraging people of State Pension age, as well as their friends and family members, to check whether they qualify for the benefit worth more than £3,000 a year. To do this, they have released two new explainer-style YouTube videos: one aimed at people considering making a claim and another at their family members.
Meanwhile, DWP Minister Laura Trott told the House of Commons that she would like to see take-up of the benefit increase. She said: “It is difficult to enrol people automatically on Pension Credit given the data the Government holds. I am, however, keen to see how increased data sharing could be used to produce a larger number of claims.”
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The DWP has also published a list of some of the reasons older people may be putting of a claim for Pension Credit as well as myth-busting the most common misconceptions about it, the Daily Record reports. Find these below.
Barriers to claiming Pension Credit
Older people may wrongly think they are not eligible because they:
Other factors may be that they:
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do not want to be seen as needing to claim
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feel that they’re able to manage
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do not think it’s worth applying – as the amount they get will be very small
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do not recognise themselves as a Pension Credit claimant
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have not got around to it
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think it’s a complex and confusing subject
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already get other help and do not want to mess up the benefits they are getting
Eight Pension Credit myths busted
Having listed some of the main reasons people of State Pension age may be put off from claiming Pension Credit, the DWP has also busted eight common myths about the benefit.
They do not think they will be eligible for Pension Credit
They would get so little that it’s not worth claiming
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False – DWP says the average Pension Credit payment is actually over £65 per week – that’s well over an extra £3,000 per year. Plus, getting Pension Credit can provide a passport to help with things like rent, Council Tax, Winter Heating Payment (Scotland only), Cold Weather Payments (not Scotland) and a free TV licence for people aged 75 and over. An ward for just one penny from a claim made before December 19 would also qualify for the second cost of living payment worth £324 – find out more here.
They have savings, so will not qualify
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False – DWP explains that people can have savings or another pension and still get extra money. Unlike other income related benefits like Universal Credit, there is no capital cut-off limit and for Pension Credit savings of under £10,000 are ignored.
They own their own home, so will not qualify
They are not eligible for Pension Credit – it’s for ‘old’ people
They cannot get a State Pension, so they will not be eligible
They’ve been turned down for Pension Credit before, so it’s not worth applying again
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False – DWP said that personal circumstances could have changed and their income or capital may have changed as a result. The first £10,000 of savings will be ignored when working out if someone can get Pension Credit.
It’s too complicated and claiming is not worth the effort
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False – DWP has simplified the process and people can claim with one free phone call to the Pension Credit claim line. However, there are other ways to claim such as a paper claim form, which can be downloaded from the GOV.UK website or an online claim can be made – find out more here.
The Pension Service can also help people to claim other benefits such as Housing Benefit, which can help with paying rent, if they’re entitled to those as well. However, they will need to contact their local council directly if they wish to apply for a reduction in their Council Tax.
How much is Pension Credit worth?
If people have reached State Pension age, it means they will get topped up to a minimum income of:
If they are over 65 and reached their State Pension Age before April 6, 2016, they could still qualify for Pension Credit if their weekly income is below:
How to make a claim
You can start your application up to four months before you reach State Pension age.
You can claim any time after you reach State Pension age but your claim can only be backdated for three months.
This means you can get up to three months of Pension Credit in your first payment if you were eligible during that time.
You will need:
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your National Insurance number
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information about your income, savings and investments
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your bank account details, if you’re applying by phone or by post
If you’re backdating your claim, you’ll need details of your income, savings and investments on the date you want your claim to start.
Apply online
You can use the online service if:
To check your entitlement, phone the Pension Credit helpline on 0800 99 1234 or use the GOV.UK Pension Credit calculator here to find out how much you could get.
You can find out more about Pension Credit on GOV.UK here.
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