Martin Lewis has called on pensioners earning below certain weekly thresholds to make sure they’re not missing out on a DWP benefit worth over £4,000 annually. Pension Credit is a means tested benefit designed to help those over State Pension age and on a low income with living costs with a weekly top up.
It can also soften the blow of housing costs such as ground rent or service charges, by factoring your home into the benefit award calculation. The Government says the benefit is worth an average of £4,300 a year, as well as potentially unlocking further support like council tax and free television licenses, in addition to housing. When you apply for Pension Credit, the Department for Work and Pensions (DWP) calculates your income on an individual level, or couples’ income together in joint pot, the UK Government website explains.
On April 6 it was upped by 4.8% in line with wage growth as part of the triple lock. The benefit tops up to £238 if you’re single, and £363.25 for couples. This is known as the Standard Minimum Guarantee.
Incomes are calculated against these thresholds, with the DWP providing the difference if you fall below that. Pension Credit gained significant attention after Chancellor Rachel Reeves limited the £300 Winter Fuel Payment (WFP) only to people on PC, as part of efforts to shore up the nation’s ailing finances.
She later reinstated it for almost everyone, whilst opting to claw the cash back on tax returns from those earning over £35k, after a major backlash.
In a post on X on Monday (April 13) the MoneySavingExpert.com founder wrote: “Even after all the shenanigans linking the Warm Home Discount to Pension Credit, there are, according to the govt’s own figures still 900,000 of the very poorest pensioners (out of 2.3m eligible) missing out on the crucial Pension Credit income top up! It’s not good enough.”
Pension Credit did rise slightly following the now-axed decision to link it to the WFP, The Independent reports, but Mr Lewis has been vocal about the need to make people more aware of it.
“PENSION CREDIT CAN BE WORTH £1,000s YET 900,000 ELIGIBLE ARE MISSING OUT,” he added. “You should check if you’re of State Pension age, (roughly 66+) with a low total weekly income.”
You may still be able to claim Pension Credit as part of the Guarantee Credit element of the benefit even if you exceed these thresholds if you have a disability, you care for someone, you have savings or housing costs. Mr Lewis therefore suggests enquiring even if your income is higher than them.
Mr Lewis says his rule of thumb is: “SINGLE. Under £238/wk you’re likely to get it, under £255/wk it’s worth checking. COUPLE (both of State Pension age): Under £363/wk you’re likely to get it, under £380/wk you it’s worth checking. Don’t stall, just call (or check online) to see if you’re due it…”
“- What counts as income? It’s all income from work; private, work or state pensions; and some benefits. Plus if you’ve £10,000+ savings or investments, each £500 above counts as £1/wk income (if only returns were really that good) Do note I’m not saying you will get it if you earn under these levels,” he added.
The best way to check is on the UK Goverment website or you can call on 0800 99 1234 (N. Ireland 0808 100 6165), the personal finance guru said.
The Government has previously insisted it is working hard to ensure everyone entitled to Pension Credit gets it. In answer to a question last month from Labour MP Sarah Hall about efforts to increase take up in the North West, Parliamentary Under-Secretary of State for Pensions Torsten Bell said: “The Government is committed to ensuring that all pensioners, including those in the North West, receive the support to which they are entitled.
“That is why we have been running the biggest ever Pension Credit take-up campaign across Great Britain, promoting Pension Credit to eligible pensioners and their families.
“This includes messaging encouraging family members to check eligibility on behalf of parents and grandparents, promoted through television and radio advertising, social media, digital screens in GP surgeries and Post Offices, as well as in national press and in magazines such as Yours, Take a Break and TV Choice.”