DWP urges people claiming pension credits to avoid this mistake | Personal Finance | Finances

Older people are advised to have all necessary information to hand before starting their online Pension Credit application. The Department for Work and Pensions (DWP) has warned that if no information is entered for more than 30 minutes, the application will expire due to safety measures, forcing applicants to start from the beginning again.

A national pension credit awareness campaign is currently underway, urging eligible people to claim the income-related benefit before December 21, 2024, which would also entitle them to a retroactive winter fuel payment. This year, new rule changes will make around 10 million people over state pension age ineligible.

Annual heating support is estimated at between £100 and £300. The DWP estimates that around 760,000 pensioner households could miss out on an average annual income increase of £3,900 because they wrongly believe their savings or home ownership disqualifies them from pension credit.

With a reward of just £1 per week you can unlock additional support including winter fuel payments. If you plan to apply for a Pension Credit online (new applications only), you will need specific information about yourself and your partner (if applicable).

Claiming retroactive benefits is a simple process. Just select ‘yes’ or ‘no’ when asked if you want to do this, and the system will calculate the date. Below is an overview of the benefit, including eligibility criteria, how to apply, possible amounts and where to find help with the application process, as reported by the Daily Record

Who is eligible for Pension Credit?

Pension credit exists in two forms: Guarantee credit and Savings credit. To be eligible for Guaranteed Pension Credit, you must have reached state pension age (currently 66 years). Your weekly income must be less than the minimum amount the UK government considers necessary to live on.

This minimum is set at £218.15 for singles and £332.95 for couples. These amounts may be higher if you are disabled, are an informal caregiver or have certain housing costs.

Savings credit is only available under specific conditions:

• you reached state pension age before April 6, 2016, or you have a partner who reached state pension age before this date and already received it
• you have an income of at least €189.80 per week for a single person and €301.22 per week for a couple

How much could you possibly receive?

Guaranteed credit supplements your weekly income up to a certain level. You may be eligible for more if you are disabled, an informal caregiver or have certain housing costs.

Savings credit can provide up to a certain amount. Exactly how much you get depends on your income and savings. Income from savings and assets above € 10,000 is taken into account.

Check eligibility

To use the calculator on GOV. VK, you need information about:

• income, benefits and pensions
• saving and investing

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

This includes:

• Your date of birth
• Your residential status
• Where in Britain you live
• Whether you are registered blind
• What benefits you currently receive
• How much you will receive each week for any benefits you receive
• Whether someone receives an informal care allowance to care for you
• How much you receive each week in pensions: state pension, private and work pensions
• Any labor income
• Any savings, investments or bonds you have

Once you answer these questions, a summary screen will appear with your answers so you can go back and change any answers before submitting. The Pension Credit Calculator then shows how much benefit you can receive each week.

All you need to do then is follow the link to the application page to find out exactly what you get from the DWP, including access to other financial support. There is also an option to print the answers you give using the calculator, so you can complete the application form faster without having to sort out the same details again. Try the Pension Credit Calculator for yourself or your family member to ensure you receive all the financial support you are entitled to.

Who cannot use the Pension Credit Calculator?

You cannot use the calculator if you or your partner:

• postpones your state pension
• owns more than one property
• are self-employed
• has housing costs (such as service costs or Crown Tenant rent) that are not mortgage repayments or rent covered by Rent Allowance

How to make a claim

You can start your application up to four months before you reach state pension age. You can apply at any time after reaching state pension age, but your application can only be submitted retroactively for three months.