Pension Credit myths which stop thousands of older people claiming up to £65 each week

The Division for Work and Pensions (DWP) estimates that as much as a million pensioner households could also be entitled to a median weekly increase of round £65, however don't declare it as some older folks wrongly imagine that as a result of they've financial savings or personal their very own residence they'd not be eligible for Pension Credit score.

Nevertheless, the DWP has shared new methods to encourage folks of State Pension age - or a good friend or member of the family - to verify if they may qualify for the ‘passport’ profit price over £3,500 every year. This consists of two new explainer-style YouTube movies, one aimed on the particular person contemplating making a declare and one for members of the family.

The DWP has additionally listed a few of the essential causes older folks could also be laying aside making a declare for Pension Credit score together with fantasy busting a few of the most typical misconceptions folks could must encourage them to suppose once more about making use of.

DWP Minister, Laura Trott MP, just lately defined to the Home of Commons that auto-enrolment on to Pension Credit score isn't doable, however is eager to see take-up of the profit improve.

Ms Trott stated: “It's tough to enrol folks mechanically on Pension Credit score given the info the Authorities holds. I'm, nonetheless, eager to see how elevated information sharing could possibly be used to supply a bigger variety of claims.”

Limitations to claiming Pension Credit score

DWP highlighted plenty of limitations that cease folks claiming Pension Credit score.

Older folks could wrongly suppose they aren't eligible as a result of they:

have financial savings
personal their very own residence
could also be working
could also be getting a small occupational pension
could have been turned down up to now

Different elements could also be that they:

don't wish to be seen as needing to assert
really feel that they’re capable of handle
don't suppose it’s price making use of - as the quantity they get will probably be very small
don't recognise themselves as a Pension Credit score claimant
haven't obtained round to it
suppose it’s a posh and complicated topic
already get different assist and don't wish to mess up the advantages they're getting

Eight Pension Credit score myths busted

Having listed a few of the essential causes folks of State Pension age could also be delay from claiming Pension Credit score, the DWP has additionally busted eight widespread myths in regards to the profit.

They don't suppose they are going to be eligible for Pension Credit score

False - some 1.38 million older folks throughout the UK at present obtain the additional monetary help.

They might get so little that it’s not price claiming

False - DWP says the typical Pension Credit score fee is definitely over £65 per week - that’s properly over an additional £3,000 per yr. Plus, getting Pension Credit score can present a passport to assist with issues like hire, Council Tax, Winter Heating Cost (Scotland solely), Chilly Climate Funds (not Scotland) and a free TV licence for folks aged 75 and over. An ward for only one penny from a declare made earlier than December 19 would additionally qualify for the second price of residing fee price £324 - discover out extra right here.

They've financial savings, so won't qualify

False - DWP explains that folks can have financial savings or one other pension and nonetheless get more money. In contrast to different revenue associated advantages like Common Credit score, there isn't any capital cut-off restrict and for Pension Credit score financial savings of below £10,000 are ignored.

They personal their very own residence, so won't qualify

False - DWP explains that householders can get Pension Credit score too and that nearly half of the individuals who get Pension Credit score personal their very own residence.

They aren't eligible for Pension Credit score - it’s for ‘previous’ folks

False - Individuals can declare as quickly as they attain the qualifying age, which is now State Pension age - 66 for each women and men.

They can't get a State Pension, so they won't be eligible

False - DWP stated that they could be entitled to Pension Credit score - even when they’re not entitled to a State Pension.

They’ve been turned down for Pension Credit score earlier than, so it’s not price making use of once more

False - DWP stated that non-public circumstances might have modified and their revenue or capital could have modified in consequence. The primary £10,000 of financial savings will probably be ignored when figuring out if somebody can get Pension Credit score.

It’s too difficult and claiming isn't well worth the effort

False - DWP has simplified the method and other people can declare with one free telephone name to the Pension Credit score declare line. Nevertheless, there are different methods to assert akin to a paper declare kind, which might be downloaded from the GOV.UK web site or an internet declare might be made - discover out extra right here.

The Pension Service also can assist folks to assert different advantages akin to Housing Profit, which may help with paying hire, in the event that they’re entitled to these as properly. Nevertheless, they might want to contact their native council immediately in the event that they want to apply for a discount of their Council Tax.

How a lot is Pension Credit score price?

If folks have reached State Pension age, it means they'll get topped as much as a minimal revenue of:

£182.60 every week if they're single
£278.70 every week if they're a pair

If they're over 65 and reached their State Pension Age earlier than April 6, 2016, they might nonetheless qualify for Pension Credit score if their weekly revenue is beneath:

£218.80 if they're single
£319.20 if they're a pair

Tips on how to make a declare

You can begin your software as much as 4 months earlier than you attain State Pension age.

You possibly can declare any time after you attain State Pension age however your declare can solely be backdated for 3 months.

This implies you possibly can stand up to a few months of Pension Credit score in your first fee for those who have been eligible throughout that point.

You'll need:

your Nationwide Insurance coverage quantity
details about your revenue, financial savings and investments
your checking account particulars, for those who’re making use of by telephone or by put up

Should you’re backdating your declare, you’ll want particulars of your revenue, financial savings and investments on the date you need your declare to begin.

An older man is sitting beside a woman resting his head on one hand with a worried look on his face — DWP estimates almost a million folks of State Pension age could possibly be entitled to the passport profit. (Picture: Getty)

Apply on-line

You should use the web service if:

you might have already claimed your State Pension
there are not any youngsters or younger folks included in your declare

To verify your entitlement, telephone the Pension Credit score helpline on 0800 99 1234 or use the GOV.UK Pension Credit score calculator right here to learn the way a lot you might get.

You could find out extra about Pension Credit score on GOV.UK right here.

To maintain updated with the most recent State Pension information, be a part of our Cash Saving Scotland Fb web page right here, or subscribe to our e-newsletter which fits out 4 instances every week - join right here.