Approximately 800,000 people over pension age who are eligible to claim Pension Credit don’t claim. The restriction on payment of Winter Fuel Allowance to Pension Credit claimants only has drawn attention to the under-claiming of Pension Credit. Claiming Pension credit is much simpler than most DWP benefits and the DWP allow other family members to make the claims on the claimant's behalf. There is a presumption that the claimant is likely to be eligible for some help - very different for the experience of claiming other DWP benefits.
Example 1. Single older pensioner. Retired pre Apr 2016. Receiving lower
state retirement pension of £169.50/week.
In good health (no disablement benefits), Rent £127/week. Council tax £38/week (Band C). Capital/savings £15,000
Income threshold for payment of Pension Credit (single person) £218.15 (after
housing costs and Council Tax)
Entitlement calculation:
£218.15 less income £169.50 = £48.65 /week Pension Credit
Adjustment for savings above £10,000 =
minus £20 /week
Entitlement: Pension
Credit £28.65/week + 100% Housing
Benefit + 100% Council Tax relief + Winter Fuel Payment + Cold Weather Payments.
The level of income is equivalent to a working age person
earning £24,300 a year (assuming standard tax code and 5% pension contribution).
Example 2. Older pensioner couple. Retired pre Apr 2016. Income £271.05/week comprising one lower state retirement pension of £169.50/week and one pension. of £101.55 based upon spouses contribution (married women's NIC opt out). Both in good health (no disablement benefits), Rent £127/week. Council tax £38/week (Band C). Capital/savings £9,000.
Entitlement calculation: £333.95 less income £271.05 = £62.90week Pension Credit
Adjustment for savings above £10,000 = nil (below limit)
Entitlement: Pension Credit £62.90/week + 100% Housing Benefit + 100% Council Tax relief + Winter Fuel Payment + Cold Weather Payments.
The level of income is equivalent to a working age couple earning a total of £35,500 (50% each) or £39,200 if the couple has just one person in paid employment. Assumptions - standard tax code, 5% pension contribution, no student loan repayments
General Points
.There is no upper limit on savings for Pension Credit, more saving/investments just reduces the benefit award. Payment of maximum Housing Benefit is automatic once entitled to Pension Credit (£1 awartd is sufficient). Pensioners on Pension Credit are entitled to 100% relief on Council Tax.
Disability payments (PIP, DLA and Attendance Allowance) do not count as income and may entitle the claimant to the severe disability increment of £81/week.
Claims can be made by telephone - see link below. Be sure to have the listed information available
The above examples are simple and for demonstration purposes. Every applicants situation will be differant.
See link for call centre numbers and information required to complete a claim.
