by Up to a million families are missing out on an average weekly increase of around £65, according to the Department for Work and Pensions (DWP). The government department says some older people mistakenly believe they are not eligible for Pension Credit because they have savings or property.
The DWP is encouraging people of State Pension age, as well as their friends and family members, to see if they qualify for the benefit which is worth more than £3,000 a year. To do this, they have released two new explainer-style YouTube videos: one aimed at people who are thinking about making a claim and another aimed at their family members.
Meanwhile, DWP Minister Laura Trott told the House of Commons that she would like the number of people taking the benefit to increase. She said: “It’s difficult to automatically enroll people on Pension Credit because of the data held by the Government. However, I’m keen to see how some of the increased data could be used to support a greater number of claims production.”
READ MORE: DWP warns pension triple lock may not be secure as PM refuses to rule out cuts
The DWP has also published a list of some of the reasons older people may be making claims for Pension Credit as well as dispelling the most common misconceptions about breaking it, reports the Daily Record. Find these below.
Barrier to claiming Pension Credit
Older people may mistakenly think they are ineligible because:
Other factors could be:
-
do not wish to be seen as a demand requirement
-
feel that they are able to manage
-
don’t think it’s worth applying – because the amount they’ll get will be very little
-
do not identify themselves as a Pension Credit claimant
-
have not got around it
-
think it is a complex and confusing matter
-
have already received other help and do not want to mess up the benefits they are receiving
Eight Pension Credit myths busted
After listing some of the main reasons why people of State Pension age may be stopped from claiming Pension Credit, the DWP has also busted eight common myths about the benefit.
They don’t think they will be eligible for Pension Credit
They would find so little that it is not worth claiming
-
False – The DWP says the average Pension Credit payment is over £65 a week – that’s well over an extra £3,000 a year. In addition, Pension Credit can provide a pass to help with things like rent, Council Tax, Winter Heating Payment (Scotland only), Cold Weather Payments (not Scotland) and free TV license for over 75s age and older. Savers for one penny of a claim made before December 19 would be entitled to a second living expenses payment worth £324 – find out more here.
They have savings, so they won’t qualify
-
False – The DWP explains that people can have savings or another pension and still get extra money. Unlike other income-related benefits such as Universal Credit, there is no capital ceiling and Pension Credit savings below £10,000 are not taken into account.
They own their own house, so they won’t qualify
They are not eligible for Pension Credit – it is for ‘old’ people
They cannot receive a State Pension, so they will not be eligible
They’ve been refused Pension Credit before, so there’s no point in applying again
-
False – The DWP said personal circumstances may have changed and their income or capital may have changed as a result. The first £10,000 of savings will not be taken into account when working out whether someone can get Pension Credit.
It’s too complicated and not worth the effort
-
False – The DWP has simplified the process and people can make a claim with one free call to the Pension Credit claim line. However, there are other ways to make a claim such as a paper claim form, which can be downloaded from the GOV.UK website or you can claim online – find out more here.
The Pension Service can also help people to claim other benefits such as Housing Benefit, which will help them pay rent, if they are also entitled to that. 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 receive additions to their minimum income:
If they are over 65 and reached their State Pension Age before 6 April 2016, they may 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 make a claim at 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 to:
-
your National Insurance number
-
information about your income, savings and investments
-
your bank account details, if you are applying by phone or post
If you are backdating your claim, you will need details of your income, savings and investments on the date you want to start your claim.
Apply online
You can use the online service if:
To check your entitlement, call 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.
READ MORE:
