There has been a huge uptick in awards of Pension Credit since the Government announced that only those in receipt of this benefit would receive an annual Winter Fuel Payment.
The Department for Work and Pensions (DWP) said it received a 51% increase in Pension Credit claims and made 57% more awards than the previous year in the period since the announcement was made about Winter Fuel Payment testing.
Pension Credit is paid as a top-up to the pensioners on the lowest incomes, and as well as giving eligibility for the Winter Fuel Payment, it gives access to other benefits, such as a free TV Licence.
Jon Greer, head of retirement policy at wealth manager Quilter, described it as “perennially underclaimed”.
However, he added that the Government had “created uncertainty” after an announcement that it would like more people to be eligible for the Winter Fuel Payment without saying how it will decide how people will be assessed for it in the future.
“A lot of progress has been made in getting more people who should be receiving Pension Credit to apply for it, but without clarity on the Winter Fuel Payment, that progress may now stall,” he said.
How life insurance can benefit your health and wellbeing over the decades
Sponsored by Post Office
Eligibility criteria
On average, those who receive Pension Credit receive a top-up of £4,000 per year.
To be eligible for Pension Credit, you need to meet the following criteria:
- You must have reached the state pension age, which is currently 66 or older.
- You must live in England, Scotland or Wales.
- Your weekly income should be below £227.10 if you’re single or £346.60 if you’re in a couple. If you have a disability or caring responsibilities, you might still qualify with a slightly higher income.
- If you have savings and investments over £10,000, each £500 above this amount counts as £1 in additional income per week when calculating eligibility.
Morgan Vine, director of policy and influencing at later life charity Independent Age, said there are still over a million people not receiving the entitlement.
“While this increase in Pension Credit recipients is a positive step, it is sadly still a drop in the ocean,” he added.
If you think you or a member of your family may be entitled to Pension Credit, you can check eligibility for free using resources linked on the Government website, while other good sources of help are Citizens Advice, local councils and charities.