DWP top-up worth nearly £4,000 for people over State Pension age

The Department for Work and Pensions (DWP) has recently confirmed that nearly 78 per cent of all new Pension Credit claims are processed within the target timeframe of 50 working days. This means that older people on a low income, particularly those living alone, could receive their first payment and any arrears by the end of December if they make a new claim this month.

Despite the full New State Pension now being worth £221.20 per week and the full Basic State Pension worth £169.50, data from the Office for National Statistics (ONS) shows that in 2021, some 3.3 million people aged 65 years and over were living alone in England and Wales, with around 337,000 single pensioner households recorded in Scotland. It's crucial for older people - whether they're single, married or cohabiting - to ensure they're claiming all the additional financial support they're entitled to this winter to help offset the price cap increase of 10% which came into force last month.

The recent change to eligibility for the Winter Fuel Payment - worth up to £300 - means that Pension Credit claimants will automatically qualify and new claims made before December 21 will qualify for a backdated payment.

Pension Credit, a benefit specifically designed to provide additional financial support for older people on low incomes, is currently the most under-claimed. Nearly 1.4 million older individuals across Great Britain, including over 125,000 residing in Scotland, are presently receiving this means-tested benefit, which could offer nearly £4,000 in extra support during the upcoming year.

Despite this, recent data from the DWP indicates that there are still 880,000 eligible pensioners not claiming the benefit they're entitled to. Some elderly individuals mistakenly believe that owning their home or having savings disqualifies them from this means-tested benefit, which can also grant access to assistance with housing costs, heating bills and Council Tax, reports the Daily Record.

An award of just £1 per week can unlock other forms of support. Here's an overview of Pension Credit, including eligibility criteria, how to apply, potential amounts you could receive, and where to find help with completing the application form.

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.