DWP letter could increase pensioners' income by £4,300 - here's how

The DWP has announced new plans to continue the take-up of Pension Credit, a means-tested benefit that can help pensioners on a low income

The Department for Work and Pensions (DWP) has unveiled new plans to increase the uptake of Pension Credit. This is a means-tested benefit that can boost the annual income of pensioners on a low income by an average of £4,300.

Pensions Minister Torsten Bell confirmed that the DWP is now "writing to all pensioners who make a new claim for Housing Benefit and who appear to be entitled to Pension Credit", adding that this measure will directly target this group and encourage them to make a claim.

He said: "In the longer term, we will be bringing together the administration of Pension Credit and Housing Benefit, so that pensioners receive both Housing Benefit and any Pension Credit that they are entitled to." These comments were made in response to Labour MP Imran Hussain's question about eligible pensioners not claiming Pension Credit.

The DWP estimates that around 760,000 pensioners are eligible but are not claiming the benefit, which can also provide additional support for housing costs, heating bills and Council Tax. Earlier this week, in a written response, the DWP Minister said: "The Government wants all pensioners to get the support to which they are rightly entitled.

"That is why we have been running the biggest ever Pension Credit take-up campaign, which included adverts on television, radio, social media such as Facebook and Instagram, on YouTube, on advertising screens, including on GP and Post Office screens as well as in the press", reports the Daily Record.

"Around 11 million pensioners will have also recently received a leaflet promoting Pension Credit along with their State Pension uprating letter." Pensioners across the UK are being reminded to check if they're eligible for Pension Credit, which could provide vital additional financial support. Even a modest award of just £1 per week can unlock further benefits.

The Department for Work and Pensions (DWP) has confirmed that nearly 78% of all new Pension Credit claims are processed within the target time of 50 working days, meaning those applying now could see payments by July. With the cost of living crisis continuing to bite, it's essential for older individuals, whether single, married, or cohabiting, to claim any extra financial help available to them this year.

When applying for Pension Credit, income is assessed individually or jointly for couples, and the benefit is designed to top up weekly income to a minimum level. Eligibility for Pension Credit may still be possible for those with higher incomes if they have a disability, care responsibilities, savings, or housing costs.

Income for Pension Credit purposes includes various sources, but not all benefits count as income. For instance, some benefits are excluded from the calculation. Regarding savings, having £10,000 or less in savings and investments won't impact Pension Credit entitlement.

If you have savings exceeding £10,000, every additional £500 is considered as £1 income per week. For instance, if your savings amount to £11,000, it's counted as a weekly income of £2.

To determine eligibility for Pension Credit

Elderly individuals or their friends and family can swiftly verify their eligibility and get an estimate of potential benefits using the online Pension Credit calculator available on GOV.UK. Alternatively, pensioners can directly contact the Pension Credit helpline to make a claim at 0800 99 1234 - lines are open from 8am to 6pm, Monday to Friday.

Expert guidance and advice can also be sought from:

More information about claiming Pension Credit can be found on GOV.UK.

Additional assistance if you qualify for Pension Credit

If you're eligible for Pension Credit, you may also qualify for other forms of help, such as:

Changes in law for mixed-age older couples and Pension Credit

In May 2019, legislation was altered so that 'mixed-age couples'—where one partner has reached State Pension age and the other hasn't—are now classified as a 'working-age' couple when assessing entitlement to means-tested benefits.

This implies that they cannot claim Pension Credit or pension-age Housing Benefit until both partners reach State Pension age. Prior to 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.

How to utilise the Pension Credit calculator

To use the calculator on GOV.UK, you will need details of:

If you have a partner, you'll need their details as well. You will be asked a series of questions with multiple choice answers.

This includes:

After answering these questions, 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.

Next, 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 the answers you provide 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 ensure you're receiving all the financial support you are entitled to claim.

Who cannot use the Pension Credit calculator?

The calculator is not suitable if you or your partner:

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.

This means that you could receive up to three months of Pension Credit in your initial payment if you were eligible during this period.

You will require:

• Your National Insurance number
• Information about your income, savings and investments
• Your bank account details, if you're applying via phone or post

If you're backdating your claim, you'll need to provide details of your income, savings and investments on the date you want your claim to commence.

Apply online

The online service is available if:.

To verify your entitlement, ring the Pension Credit helpline on 0800 99 1234 or use the GOV.UK Pension Credit calculator to determine how much you could be entitled to.