State pensioners who are living together and have a low income can receive a weekly payment of up to £346 from the Department for Work and Pensions (DWP) through Pension Credit. This payment is separate from the State Pension and can be claimed individually or as a couple.
Pension Credit helps pensioners with their living costs and offers additional financial support, especially for those who are financially struggling.
What is Pension Credit and Who Can Claim It?
Pension Credit is designed to help pensioners boost their income. Eligible individuals can claim it even if they have other income, savings, or own their home. Pensioners living together can receive a joint weekly income top-up to £346.
In addition, if you or your partner have a severe disability, you could receive an extra £82.90 each week on top of the regular payment.
This benefit is particularly useful as it helps fill the gap for people whose income is lower than the minimum set amount. It is important to note that if you live in England, Scotland, or Wales and have reached the State Pension age of 66, you may be eligible.
What Are the Financial Benefits of Pension Credit?
Pension Credit not only boosts your weekly income but also opens the door to many additional financial benefits. Some of these include:
- Housing cost support: You could get help with rent or mortgage payments.
- Council Tax discount: Eligible claimants can receive discounts on their Council Tax bills.
- Free TV licence: Pensioners aged 75 or over are entitled to a free TV licence.
- Access to Winter Fuel Payment: Those who claim Pension Credit are often eligible for the Winter Fuel Payment, which helps with heating costs during the colder months.
- NHS treatment costs: You may be entitled to free or discounted NHS treatment.
How Does Pension Credit Benefit Couples?
Couples living together can receive a joint Pension Credit payment, which will top up their weekly income to £346. This amount is for couples where both partners have reached State Pension age.
If one partner has a severe disability, they could receive an additional £82.90 per week, further boosting the household income.
How Much Could You Receive?
The exact amount you receive depends on your income, savings, and whether you live alone or with a partner.
For single pensioners, the minimum guarantee for Pension Credit will increase from £218.15 to £227.10 per week, while for couples, it will rise from £332.95 to £346.60 per week.
This increase of 4.1% reflects the rise in the Average Weekly Earnings (AWE) index, which ensures that pensioners are receiving a fair amount of financial help each year.
Additional Support Available
Pension Credit is not just about weekly payments. It can unlock additional benefits that make a big difference in your financial situation.
The total value of these benefits can be around £4,300 per year on average. For many pensioners, this could be a lifeline, especially when facing rising living costs and other challenges.
How to Apply for Pension Credit
You can apply for Pension Credit any time after you reach State Pension age. In fact, you can apply up to four months before you turn 66.
The earlier you apply, the sooner you can start receiving payments. However, if you apply late, you can backdate your claim by up to three months, meaning you could receive up to three months’ worth of payments at once.
To apply, the DWP calculates your income, which includes your State Pension, any other pensions, earnings from employment or self-employment, and most social security benefits.
It’s important to note that having savings over £10,000 may affect how much you receive. For example, every £500 over the £10,000 savings limit counts as £1 of income per week.
Pension Credit is an essential financial support system for low-income state pensioners, providing crucial assistance to meet living costs.
Whether you live alone or as a couple, you can benefit from the weekly payment and access to additional benefits such as housing support, Council Tax discounts, and the Winter Fuel Payment.
Pensioners who are eligible for this benefit should not miss out, as it can be worth up to £4,300 a year on average. To ensure you receive this vital help, it’s important to check if you qualify and apply for it as soon as you reach State Pension age.
FAQs
Who is eligible for Pension Credit?
Pension Credit is available to those who have reached State Pension age (currently 66 for both men and women) and have a low income. You can claim it individually or as a couple, and you can still qualify even if you have other income, savings, or own a home.
How much can I receive from Pension Credit?
Pension Credit provides a top-up to your income. For single pensioners, the minimum guarantee will be £227.10 a week, and for couples, it will be £346.60 a week. You may also receive an extra £82.90 a week if you or your partner have a severe disability.
What additional benefits can I get with Pension Credit?
Claiming Pension Credit can unlock access to additional benefits like help with housing costs, Council Tax discounts, the Winter Fuel Payment, free TV licenses for those over 75, and discounted NHS treatment.
Can I backdate my Pension Credit claim?
Yes, you can backdate your Pension Credit claim by up to three months. This means if you were eligible for Pension Credit during that time, you can receive up to three months’ worth of payments when your claim is approved.
