DWP boss urges every older person entitled to Pension Credit to claim £3,900 benefit

Linda Howard
·7-min read

Secretary of State for Work and Pensions Liz Kendall has said there is no “tension” between plans to make savings from limiting Winter Fuel Payments to only the poorest pensioners and more older people claiming Pension Credit. Winter Fuel Payments are worth up to £300 each year while Pension Credit provides annual financial support of around £3,900.

Chancellor Rachel Reeves announced in July that Winter Fuel Payments will only be issued to older people receiving means-tested benefits such as Pension Credit, Tax Credits (with an annual award of over £26) or Universal Credit (for mixed age couples). More than 10million pensioners will miss out on the extra financial help this year, including 850,000 in Scotland, saving the public purse £1.5billion a year.

READ MORE: WASPI women to get State Pension age change compensation update 'soon' from DWP

READ MORE: Married people over State Pension age could be due £3,900 DWP annual income top-up

As more people apply for Pension Credit the savings will likely fall, but the Work and Pensions Secretary suggested she was comfortable with this as she appeared before the cross-party Work and Pensions Committee on Wednesday.

Ms Kendall told the cross-party group of MPs she wanted to see a 100 per cent take-up of Pension Credit “regardless” of how this impacted on the Government’s attempts to plug a hole in the public finances.

She said: “I would like every pensioner who is entitled to Pension Credit, up to £3,900, to get it, yes.”

Pressed on whether this would be the case regardless of costs to the Government, she added: “Regardless, because they are entitled to it. That is what I want to see.”

Asked if there was tension in the Government about this, Ms Kendall said: “For me there is no tension because I think it is a scandal that over 800,000 pensioners, the poorest pensioners, are losing up to £3,900 in Pension Credit that they should be entitled to.”

She also hinted at reforming the Pension Credit application process, telling MPs: “ People don’t want to claim, they feel a stigma or are ashamed of claiming. The Pension Credit form is very long.

“We have got more people doing this online now but we have got to solve that and I think it should not be beyond the wit of man or even womankind to actually solve this problem which is why ultimately we have got to make this a much more automatic entitlement.

“So for me there is no tension because I am going to move heaven and earth to do what I can to stop that because it is not right.”

Ministers have faced criticism for slashing access to the Winter Fuel Payment, with opposition MPs urging them to rethink the move.

The Social Security Advisory Committee, a group of independent experts who advise the Department for Work and Pensions (DWP), has meanwhile said the savings from limiting the allowance to only the poorest pensioners are unclear and could be outdone by a rise in those seeking Pension Credit.

Who can claim Pension Credit?

There are two types of Pension Credit - Guarantee Credit and Savings Credit.

To qualify for Guarantee Pension Credit , you must be State Pension age (66). Your weekly income will need to be less than the minimum amount the UK Government says you need to live on.

This is £218.15 for a single person and £332.95 for a couple - this amount could be higher if you're disabled, a carer or have certain housing costs.

You can only get Savings Credit if:

  • you reached State Pension age before April 6, 2016, or you have a partner who reached State Pension age before this date and was already receiving it

  • you have qualifying income of at least £189.80 a week for a single person and £301.22 a week for a couple

How much could you receive from DWP?

Guarantee Credit tops up your weekly income to:

  • £218.15 for a single person

  • £332.95 for a couple (married, in a civil partnership or cohabiting)

You might be able to get more than this if you're disabled or a carer, or you have certain housing costs.

Savings Credit can give you up to:

  • £17.01 a week for a single person

  • £19.04 a week for a couple (married, in a civil partnership or cohabiting).

The exact amount you’ll get depends on your income and savings. Your income includes assumed income from savings and capital over £10,000.

How to check eligibility for Pension Credit

Older people, or friends and family, can quickly check 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 contact the Pension Credit helpline directly to make a claim on 0800 99 1234 - lines are open 8am to 6pm, Monday to Friday.

Expert help and advice is also available from:

More details about claiming Pension Credit can be found on GOV.UK here.

Other help if you get Pension Credit

If you qualify for Pension Credit you can also get other help, such as:

  • Housing Benefit if you rent the property you live in

  • Support for Mortgage Interest if you own the property you live in

  • Council Tax discount

  • Free TV licence if you are aged 75 or over

  • Help with NHS dental treatment, glasses and transport costs for hospital appointments

  • Help with your heating costs through the Warm Home Discount Scheme or Winter Fuel Payments

  • A discount on the Royal Mail redirection service if you are moving house

Mixed aged older couples and Pension Credit

In May 2019, the law changed so a ‘mixed age couple’ - a couple where one partner is of State Pension age and the other is under it - are considered to be a ‘working age’ couple when checking entitlement to means-tested benefits.

This means they cannot claim Pension Credit or pension age Housing Benefit until they are both State Pension age. Before this DWP change, a mixed age couple could be eligible to claim the more generous State Pension age benefits when just one of them reached State Pension age.

How to use the Pension Credit calculator

To use the calculator on GOV.UK, you will need details of:

  • earnings, benefits and pensions

  • savings and investments

You’ll need the same details for your partner if you have one. You will be presented by a series of questions with multiple choice answer options.

This includes:

  • Your date of birth

  • Your residential status

  • Where in the UK you live

  • Whether you are registered blind

  • Which benefits you currently receive

  • How much you receive each week for any benefits you get

  • Whether someone is paid Carer’s Allowance to look after you

  • How much you get each week from pensions - State Pension, private and work pensions

  • Any employment earnings

  • Any savings, investments or bonds you have

Once you have answered these questions, a summary screen shows your responses, allowing you to go back and change any answers before submitting. The Pension Credit calculator then displays how much benefit you could receive each week.

All you have to do then is follow the link to the application page to find out exactly what you will get from the DWP, including access to other financial support.

There’s also an option to print off the answers you give using the calculator tool to help you complete the application form quicker without having to look out the same details again. Try the Pension Credit Calculator for yourself or your family member to make sure you’re receiving all the financial support you are entitled to claim.

Who cannot use the Pension Credit calculator?

You cannot use the calculator if you or your partner:

  • are deferring your State Pension

  • own more than one property

  • are self employed

  • have housing costs (such as service charges or Crown Tenant rent) which are neither mortgage repayments nor rent covered by Housing Benefit

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:

  • your National Insurance number

  • information about your income, savings and investments

  • 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:

  • you have already claimed your State Pension

  • there are no children or young people included in your claim

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.

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