Pension Credit: do you qualify and how to apply

02 October 2024

Written by Retirement Line

Following the government’s decision to scrap universal Winter Fuel Payments for pensioners, thousands of pensioners are being urged to check their eligibility for Pension Credit. 

Pension Credit is known as a ‘gateway benefit’ because people who receive it automatically qualify for the annual Winter Fuel Payment. But as many as 800,000 UK pensioners who are eligible for Pension Credit have still not applied. 

Across the county, campaigners are calling for all those who are eligible to sign up for Pension Credit in time to receive the next Winter Fuel Payment. 

The deadline is 21 December 2024. However, pensioners who might be eligible are being urged to act now as it can take the Department of Work and Pensions (DWP) several weeks to process claims. 

Please note: this article is relevant if you live in England or Wales. Different arrangements are applicable in Northern Ireland and Scotland.

Why is Pension Credit so important?

As we reported in our article ‘What’s happening to Winter Fuel Payments?’ on 3 September, Winter Fuel Payments of £200 (£300 for people aged 80+) have been a universal benefit for people of State Pension age since 1997. 

But now, the payments will only be made to retirees who receive one of these means-tested benefits:

• Pension Credit

• Universal Credit

• Income Support

• Income-based Jobseeker’s Allowance

• Income-related Employment and Support Allowance

Of these benefits, Pension Credit is being talked about in particular as so many pensioners who qualify have not applied. The application process is relatively simple and can lead to benefits worth over £3,000 – and not just the Winter Fuel Payment.  

Who qualifies for Pension Credit?

You are likely to qualify for Pension Credit if you are of State Pension age and your total income (from State Pension and other sources, but not including some benefits) is under £218.15 a week for single pensioners and under £332.95 for couples. A ‘couple’ means spouses, civil partners, or someone else you live with as a couple – as long as both of you are of State Pension age. 

However, according to Money Saving Expert Martin Lewis, it is worth applying if your income is slightly above these figures. He says that you ‘may get’ Pension Credit if your income is under £235 a week for single people and under £350 a week for couples.

Some people may qualify even if they have a higher income. For example, Martin Lewis says that for someone with a disability or illness in receipt of Attendance Allowance, the income threshold for Pension Credit rises by £82 per week.

Do my savings affect my eligibility for Pension Credit?

If you have savings of over £10,000 you could find that you are not eligible for Pension credit. The DWP counts every £500 over £10,000 as equivalent to £1 per week additional income.

However, this is more complex than it first appears. For example, there are special criteria in place for pensioners who receive the ‘old’ State Pension, likely to be people aged 72+.

We therefore suggest that if you are below or close to the income thresholds listed above, you check your eligibility for Pension Credit regardless of how much money you have in savings.

How can I apply for Pension Credit?

A good starting point is to use the online eligibility check at www.gov.uk/pension-credit-calculator. It takes just a few minutes to complete, and you will then get confirmation of your likely estimated Pension Credit payment (if applicable).

You can then visit https://www.gov.uk/pension-credit/how-to-claim to apply online. This page also lets you print out a claim form if you would prefer to apply by post.

You can also apply by phone: call 0800 99 1234 Monday to Friday, 8am to 6pm. A friend or family member can call for you if you cannot use the phone.