DWP warns people claiming £3,900 Pension Credit to avoid this mistake

Pensioners applying for Pension Credit online are being warned to have all necessary information at hand before starting the application process. The Department for Work and Pensions (DWP) has advised that if no details are entered for more than 30 minutes, the application will time out for security reasons, requiring applicants to start from scratch.

A nationwide Pension Credit awareness campaign is currently underway, encouraging eligible individuals to claim the income-related benefit before December 21, 2024, which would also grant them access to a backdated Winter Fuel Payment. This year, due to new rule changes, around 10 million people over State Pension age, will not be eligible for the Winter Fuel Payment unless they receive a means-tested benefit like Pension Credit.

The annual heating help is worth between £100 and £300. The DWP estimates that 760,000 pensioner households could be missing out on an average annual income boost of £3,900 because they mistakenly believe their savings or home ownership disqualifies them from Pension Credit.

An award of just £1 per week can unlock additional support, including Winter Fuel Payments. If you're planning to make an online claim for Pension Credit (new claims only), you'll need specific information about yourself and your partner (if applicable).

Backdating a claim is straightforward - simply select 'yes' or 'no' when asked if you wish to do so, and the system will calculate the date. Here's a brief overview of the benefit, including eligibility criteria, how to apply, potential amounts, and where to find help with the application process, reports the Daily Record.

Who is eligible for Pension Credit?

Pension Credit comes in two forms: Guarantee Credit and Savings Credit. To qualify for Guarantee Pension Credit, you must be of State Pension age (currently 66). Your weekly income should be less than the minimum amount the UK Government deems necessary for living.

This minimum is set at £218.15 for single individuals and £332.95 for couples. These amounts may be higher if you're disabled, a carer, 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 was already receiving it
• you have qualifying income of at least £189.80 a week for a single person and £301.22 a week for a couple

How much could you potentially receive?

Guarantee Credit supplements your weekly income to a certain level. You might be eligible for more if you're disabled, a carer, or have certain housing costs.

Savings Credit can provide up to a certain amount. The exact amount you'll receive depends on your income and savings. Any income from savings and capital over £10,000 is taken into account.

Checking eligibility

To utilise the calculator on GOV. UK, you'll need details of:

• earnings, benefits and pensions
• savings and investments

You'll require 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 the UK you live
• Whether you are registered blind
• Which benefits you currently receive
• How much you receive each week for any benefits you get
• Whether someone is paid Carer’s Allowance to look after you
• How much you get each week from pensions - State Pension, private and work pensions
• Any employment earnings
• Any savings, investments or bonds you have

Once you've answered these questions, a summary screen displays your responses, allowing you to go back and alter any answers before submitting. The Pension Credit calculator then shows how much benefit you could receive each week.

All you have to do next is follow the link to the application page to find out exactly what you will get from the DWP, including access to other financial support. There's also an option to print off the answers you give using the calculator tool to help you complete the application form quicker without having to look out the same details again. Try the Pension Credit Calculator for yourself or your family member to make sure you're receiving all the financial support you are entitled to claim.

Who cannot use the Pension Credit calculator?

You cannot use the calculator if you or your partner:

• are deferring your State Pension
• own more than one property
• are self-employed
• have housing costs (such as service charges or Crown Tenant rent) which are neither mortgage repayments nor rent covered by Housing Benefit

How to make a claim

You can start your application up to four months before you reach State Pension age. You can claim any time after you reach State Pension age but your claim can only be backdated for three months.