DUE CREDIT
Warning for 1.2million on state pension missing out on £4,000 a year and £300 winter fuel payment – how to claim NOW
Pensioners told to act now or miss out on thousands of pounds in support
A WARNING has been sounded that 1.2million eligible pensioners not claiming Pension Credit payments worth up to £4,000 a year could also miss out on winter fuel payments this year.
The number of new Pension Credit claimants has fallen by 3%, sparking concern ahead of planned changes to winter fuel payments.
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There were 11,000 fewer recipients compared with the same period last year and 24,000 fewer compared with 2022.
Those failing to claim the lucrative benefit could be further out of pocket after the government announced plans to change the winter fuel payment this autumn.
The £300 winter fuel allowance was previously available to everyone aged 66 and over and helped with pricey energy costs.
However, Chancellor Rachel Reeves revealed earlier this summer that in future the cash would only be given to retirees on Pension Credit, or other means-tested benefits.
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Figures released today by the government show a 3% fall in new Pension Credit claimants and put the number of eligible individuals not claiming at 1.2million.
Joanna Elson, chief executive of charity Independent Age said: “It has never been more important that older people living on a low income start receiving this important financial entitlement, or they will not only continue to lose this money, but they’ll also now miss out on the winter fuel payment if the government’s changes go ahead in the autumn to means test it.
“The latest overall take-up figures show that only 63% of eligible people receive the entitlement, meaning up to 1.2million older adults living on a low income could be missing out.
The group warned that the low take-up numbers show that "now is not the right time" to make changes, adding that it believes it’s dangerous and puts older lives at risk.
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Pension Credit tops up your weekly income if it's below £218.15 if you are single or to £332.95 if you have a partner.
Those with income over this can still get the help too if they have certain other costs, like housing.
Winter Fuel Payment Changes
The benefit is worth an average of £4,000 a year to claimants and give entitlement to a number of other benefits and freebies, including a free TV licence, which together can be worth an additional £8,000 a year.
To qualify for this year's winter fuel payment, you must have been claiming Pension Credit payments during the qualifying week.
This will take place between September 16 and 22.
With this in mind, it's wise to put in an application as soon as possible, as the Department for Work and Pensions can take up to two months to process new claims.
What is Pension Credit?
Pension Credit is extra money to help with living costs.
It’s available to those who are over the state pension age of 66 and on a low income.
Pension Credit tops up your weekly income to £218.15 if you are single or to £332.95 if you have a partner.
It can also help with housing costs such as ground rent or service charges.
Pension Credit is separate from your State Pension and can be claimed even if you have other income, savings or own your house.
And, if you’re a carer, are severely disabled, or are responsible for a child or young person, you could be entitled to extra help.
Who’s eligible for Pension Credit?
To be eligible for Pension Credit, you must live in England, Scotland or Wales and have reached State Pension age (currently 66).
You must include your partner on the application if you live together and to be eligible you must have both reached state pension age or receive housing benefit for people over state pension age.
To be eligible, your income must be below £218.15 if you’re single, or £332.95 jointly if you’re applying with a partner.
Income includes State Pension, other pensions, earnings from employment or self-employment and most social security benefits.
Some benefits are not included such as:
- Adult Disability Payment
- Attendance Allowance
- Christmas Bonus
- Child Benefit
- Disability Living Allowance
- Personal Independence Payment
- Social fund payments like Winter Fuel Allowance
- Housing Benefit
- Council Tax Reduction
If you’re entitled to a personal, state or workplace pension and you have not claimed it yet, the amount you’d expect to get still counts as income.
If your income is above the threshold, you could still be eligible if you have a disability, you care for someone, you have savings or have housing costs.
Savings under £10,000 will not affect your Pension Credit, if you have more than £10,000, every £500 over £10,000 counts as £1 income a week.
How do you apply?
You can start your application for Pension Credit up to four months before you reach .
To apply you’ll need to provide your National Insurance number, information about any income, savings and investments you have, and your bank account details.
If you live with a partner you’ll also need to provide their details.
You can apply online or by calling 0800 99 1234.
What else can you get?
Pension Credit tops up your weekly income to £218.15 if you’re single, or £332.95 jointly if you have a partner.
You may get extra amounts if you have other responsibilities and costs.
If you have a disability, you could get an extra £81.50 a week if you receive any of the following:
- Attendance Allowance
- Disability Living Allowance (middle or highest rate)
- Personal Independence Payment (daily living component\0
- Armed Forces Independence Payment
- Adult Disability Payment (daily living component at the standard or enhanced rate)
You could get an extra £45.60 a week if care for another person and you receive:
- Carer’s Allowance
- Carer Support Payment
- Or if you’ve claimed Carer’s Allowance but are not being paid because you receive another benefit of a higher amount
If you and your partner have both claimed or are getting Carer’s Allowance, you can both get this extra amount.
You could also get an extra £66.29 a week for each child or young person you’re responsible for, increased to £76.79 a week for the first child if they were born before 6 April 2017.
The young person must normally live with you and be under the age of 20.
If they’re aged between 16 and 20 they must be studying for GCSEs, A-Levels or similar, or be in approved training.
If the child or young person is disabled you could claim an extra £35.93 a week.
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Pension Credit can also be granted to help with housing costs if you pay ground rent on a leasehold, service charges or site rents.
If you receive the Guarantee Credit part of Pension Credit, you can also get help with NHS costs.
How does the state pension work?
AT the moment the current state pension is paid to both men and women from age 66 - but it's due to rise to 67 by 2028 and 68 by 2046.
The state pension is a recurring payment from the government most Brits start getting when they reach State Pension age.
But not everyone gets the same amount, and you are awarded depending on your National Insurance record.
For most pensioners, it forms only part of their retirement income, as they could have other pots from a workplace pension, earning and savings.
The new state pension is based on people's National Insurance records.
Workers must have 35 qualifying years of National Insurance to get the maximum amount of the new state pension.
You earn National Insurance qualifying years through work, or by getting credits, for instance when you are looking after children and claiming child benefit.
If you have gaps, you can top up your record by paying in voluntary National Insurance contributions.
To get the old, full basic state pension, you will need 30 years of contributions or credits.
You will need at least 10 years on your NI record to get any state pension.
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