An additional 58,000 households are now receiving Pension Credit payments. (Image: Getty Images)
The Department for Work and Pensions (DWP) has published the latest Pension Credit figures, revealing that 58,800 more households have been awarded the benefit since the Winter Fuel Payment announcement last summer.
Additionally, the DWP reported that the backlog of outstanding applications has decreased from approximately 30,000 at the end of June 2024 to 10,800. Pensions Minister Torsten Bell previously stated that the average processing time for the State Pension income boost, worth over £4,300 this year, is 52.8 working days, or just over 10 weeks.
This implies that older people who are on a low income and who submit a new claim this month may receive their first payment and any arrears by the end of August.
Commenting on the new data, the DWP Pensions Minister said: “We are absolutely committed to ensuring every pensioner receives what they are entitled to. Thanks to our biggest ever awareness campaign we have dealt with a record number of Pension Credit claims in the last 10 months, with an additional 58,800 households now receiving support.
“Pension Credit can be a lifeline to those on low incomes, and I’d urge all pensioners who think they might be eligible after a change to their circumstances in later life to apply.”
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“This support for pensioners comes on top of our commitment to the Triple Lock, boosting the State Pension for millions by up to £1,900 this parliament” The data reveals a startling 28 per cent surge in Pension Credit applications for 2024/25 with the DWP handling 321,000 queries, representing an increase of 69,900 from the previous year, reports the Daily Record.
Following the July 29, 2024 announcement to means-test Winter Fuel Payments, there has been a whopping 51% spike in Pension Credit claim submissions, resulting in 285,600 cases – that’s 96,200 more than the same timeframe a year prior.
Out of those, a staggering 162,800 Pension Credit claims have been successful, marking a significant 57% rise or an additional 58,800 awards compared to the year before.
Just Group’s group communications director Stephen Lowe said: “The take up of Pension Credit has been subject to a harsh spotlight since the UK Government first limited the Winter Fuel Payments to people who are in receipt of Pension Credit or certain other means-tested benefits.”
The DWP reported that the backlog of outstanding applications has decreased (Image: undefined via Getty Images)
Who can claim Pension Credit?
There are two types of Pension Credit – Guarantee Credit and Savings Credit. To be eligible for Guarantee Pension Credit, you must have reached the State Pension age of 66. Your weekly income needs to be less than the minimum amount that the UK Government has determined is necessary for living.
This is £227.10 for a single person and £346.60 for a couple – these amounts could be higher if you’re disabled, a carer or have certain housing costs.
Savings Credit can only be received 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
How much could you potentially receive from DWP?
Guarantee Credit tops up your weekly income to:
- £227.10 for a single person
- £346.60 for a couple (married, in a civil partnership or cohabiting)
You might be able to receive more than this if you’re disabled or a carer, or you have certain housing costs.
Savings Credit can give you up to:
- £17.30 a week for a single person
- £19.36 a week for a couple (married, in a civil partnership or cohabiting).
ll get depends on your income and savings. Your income includes assumed income from savings and capital over £10,000.
How to determine eligibility for Pension Credit
Older people, or their 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 fond on GOV.UK here.
Additional help if you receive Pension Credit
If you qualify for Pension Credit you can also receive 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, Winter Fuel Payments or Pension Age Winter Heating Payment
- 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 was altered so that a ‘mixed age couple’ – a pair where one partner is of State Pension age and the other isn’t – are deemed to be a ‘working age’ couple when assessing entitlement to means-tested benefits.
This implies they can’t claim Pension Credit or pension age Housing Benefit until both are of State Pension age. Prior to this DWP alteration, 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’ve answered these questions, a summary screen displays your responses, allowing you to go back and alter any answers before submitting. The Pension Credit calculator then shows 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 responses you provide using the calculator tool to help you fill out the application form more swiftly without having to search for the same details again. Give the Pension Credit Calculator a go for yourself or a family member to ensure you’re receiving all the financial support you’re entitled to claim.
Who can’t 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.
