New DWP plan so people receive benefit worth £3,900 quickly

The Department for Work and Pensions (DWP) has said almost 78% of all new Pension Credit claims are processed from initial application to award decision letter within 50 working days. This suggests that older people on a low income, particularly those living alone, who make a new claim this month could receive their first payment and any arrears before the end of December.

Pensions Minister Emma Reynolds has confirmed that the DWP has "secured funding for additional staffing to improve processing times". This comes after Conservative MP Dr Luke Evans questioned what steps were being taken to reduce the time it takes to process a new claim for the annual income boost, which is worth an average of £3,900.

The DWP has seen a 152% increase in the number of new claims following the announcement in July that Winter Fuel Payments will only be issued to older people on a low income who are receiving a means-tested benefit such as Pension Credit, Universal Credit (for mixed age couples), or Tax Credits. New claims for Pension Credit made before December 21, 2024, which are later successful, will qualify for a backdated Winter Fuel Payment.

In a written response to Dr Evans last week, the Pensions Minister stated: "The most recent information on processing times for Pension Credit was published in the DWP Annual Report and Accounts published on 22nd July 2024."

DWP has successfully processed a significant portion of Pension Credit claims on time during the fiscal year 2023/24. "This shows that in 2023/24 DWP cleared 192,000 Pension Credit claims within the planned 50 working day timescale, equating to 77.7 per cent. The department has secured funding for additional staffing to improve processing times.", reports the Daily Record.

Who can claim Pension Credit

Pension Credit is claimed by nearly 1.4m people across the UK. There are misconceptions about whether having savings or owning your own home can disqualify a person from being eligible, but this isn't always the case. Pension Credit can also help people with housing, heating bills, and Council Tax.

A step-by-step guide clarifies who's eligible for Pension Credit — obtainable via two distinct parts: Guarantee Credit and Savings Credit. Guarantee Credit requires claimants to be at State Pension age (66) while providing a top-up if income falls below £218.15 for singles or £332.95 for couples weekly.

This could rise for those with disabilities, carer responsibilities, or specific housing costs. Conversely, Savings Credit rewards those with modest retirement savings, supplementing their income further.

The exact amount you'll receive depends on your income and savings. Your income includes assumed income from savings and capital over £10,000.

Who is eligible for Pension Credit

To check eligibility for Pension Credit, older people or their friends and family can quickly check their eligibility and get an estimate of what they may receive by using the online Pension Credit calculator on GOV. UK.

Alternatively, pensioners can contact the Pension Credit helpline directly to check if they should make a claim on 0800 99 1234 - lines are open 8am to 6pm, Monday to Friday. Expert help and advice is also available.

If you qualify for Pension Credit you can also get other help. In May 2019, the law changed so a 'mixed age couple' - a couple where one partner is of State Pension age and the other is under it - are considered to be a 'working age' couple when checking entitlement to means-tested benefits.

This means they cannot claim Pension Credit or pension age Housing Benefit until they are both State Pension age. Before this DWP change, a mixed age couple could be eligible to claim the more generous State Pension age benefits when just one of them reached State Pension age.

To use the calculator on GOV. UK, you will need details of earnings, benefits and pensions, savings and investments. If you have a partner, you'll need their details as well. You will be asked a series of multiple-choice questions.

Once you've answered these, a summary screen will display your responses, allowing you to review and change any answers before submitting. The Pension Credit calculator will then show how much benefit you could receive each week.

Simply 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 your answers from the calculator tool to help you fill in the application form more quickly without having to look up the same details again.

Try the Pension Credit Calculator for yourself or a family member to ensure you're receiving all the financial support you're entitled to claim. However, you cannot use the calculator if you or your partner are deferring your State Pension, own more than one property, are self-employed, or have housing costs (such as service charges or Crown Tenant rent) which are neither mortgage repayments nor rent covered by Housing Benefit.

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.

This means you could receive up to three months of Pension Credit in your initial payment if you were eligible during that period. You will need: your National Insurance number, information about your income, savings and investments, and your bank account details if you're applying by phone or post.

If you're backdating your claim, you'll need details of your income, savings and investments on the date you want your claim to start. Apply online if you have already claimed your State Pension and there are no children or young people included in your claim.

To check your entitlement, ring the Pension Credit helpline on 0800 99 1234 or use the GOV. UK Pension Credit calculator here to find out how much you could get.