Pension Credit: DWP under pressure as pensioners miss out on extra cash | Personal Finance | Finance –

Published On: Fri, Sep 3rd, 2021

Pension Credit: DWP under pressure as pensioners miss out on extra cash | Personal Finance | Finance

The Government estimated that around £1.7billion of Pension Credit is unclaimed. Pension Credit is a benefit for people over State Pension age on lower incomes and is designed to provide extra support and supplement pensioners’ income. The amount that can be received through Pension Credit depends on which of the two parts one is eligible for.

Alternatively, if one’s pension pot has not been touched, the income allowed to be received from Savings Credit will depend on a calculation of how much one would get if they had swapped their pension for an annuity.

Other assets such as savings and investments might also count towards the benefit assessment.

One of the benefits of Pension Credit is that pensioners can claim it regardless of whether they are still working or have retired. It is worth pensioners finding out whether they are entitled to Pension Credit, as even if they are only able to claim a minor amount, it could boost their income.

One can apply up to four months before they want to start receiving Pension Credit, and can claim any time after they reach State Pension age. However, a claim can only be backdated for three months. Those who are over 75 and claiming Pension Credit have an added bonus, as they can also claim a free TV Licence.

Changes to the scheme in 2019 mean there are some restrictions on couples applying for Pension Credit. Those who are married or in a civil partnership only qualify to make a new claim if both parties have reached state pension age or one party has reached state pension age and is claiming Housing Benefit for the couple.

However, if one is not entitled to Pension Credit, they can apply for Universal credit instead.

Henry Tapper, chair of Pension Playpen, says more needs to be done to make those of state pension age aware of Pension Credit.

He told “Not enough is being done.

“Despite the best efforts of Age UK and others, take up of Universal Credit remains far too low.

“This should be an immediate priority for Guy Opperman who is Minister for both pensions and financial inclusion.

“Too many pensioners are excluded from their rightful benefits.” contacted the DWP for comment.

Source link