Beat the Pension Credit deadline!
There are just a few days left to make a backdated claim for Pension Credit and receive the Winter Fuel Payment which, when combined, could be worth more than £4,000.
It’s estimated that as many as 880,000 people who are over state pension age and are on low incomes are not currently claiming this Pension Credit, which also entitles recipients to other financial support, including help with NHS dental treatment, prescriptions and housing costs.
Pension Credit itself guarantees a weekly income of £218.15 if you’re single or £332.95 if you have a partner, so you can only apply for it if your current income is lower than these amounts. If you have savings and investments over £10,000, each £500 above this amount counts as £1 in additional income per week when calculating your eligibility. For example, if you have £13,000 in savings, this counts as £6 income a week.
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If you reached state pension age before 6 April 2016 and have a small amount of income, you may be eligible for the savings credit element of Pension Credit too, which provides a small top up. Some households may be entitled to additional amounts, for example if they have a severe disability, or are a carer.
Act now to get both Pension Credit and Winter Fuel Payment
The deadline to apply for Pension Credit and qualify for the Winter Fuel Payment is fast approaching. If you want to receive the Winter Fuel Payment, which is now means-tested, you must submit your Pension Credit claim by this Saturday, December 21. The Winter Fuel Payment is worth £300 for households with someone aged 80 or over, or £200 for households with someone aged 66-79.
Pension Credit claims can only be backdated for up to three months. The 'qualifying week' for the Winter Fuel Payment was from September 16-22, so claims for this period must be submitted by December 21 to ensure eligibility.
Tom Selby, Director of Public Policy at AJ Bell, said: “Even a claim for a small amount of Pension Credit top-up during the ‘qualifying week’ of 16-22 September should trigger a Winter Fuel Payment worth up to £300. Because of the way the backdating rules work, the deadline for making a claim for this period is just a few days away on 21 December. “
You can check if you qualify for Pension Credit by using the government’s online Pension Credit calculator tool or by calling the Pension Credit claim line on 0800 99 1234.
Jon Greer, head of retirement policy at Quilter, said: "Pension Credit has become all the more important following the Labour government’s changes to the Winter Fuel Payment which mean it will only be paid to those claiming Pension Credit or other means-tested benefits, so it is vital that pensioners on low incomes check their eligibility.
Calculate how much more income you could get instantly by using our online annuity calculator.
“The latest Department for Work and Pensions’ estimates for take up of Pension Credit for the financial year ending 2022, published in January this year, confirm that 40% of those entitled to claim the benefit don’t and just 73% of the total amount of pension credit that could have been claimed was claimed.”