DWP alert as 760,000 pensioner households missing out on an extra £3,900 a year plus council tax discounts
The Government is focusing on raising awareness of Pension Credit after its decision to restrict Winter Fuel Allowance
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The Department for Work and Pensions (DWP) has issued an urgent alert, revealing that up to 760,000 households are missing out on Pension Credit worth £3,900 each year.
This figure marks a decrease from the previous year when 870,000 families were not claiming the benefit.
Despite this improvement, £1.5billion of available Pension Credit went unclaimed in the financial year ending 2023.
However, recent data shows a surge in applications, with claims jumping by 152 per cent since July 29.
This increase follows the Government's announcement of changes to Winter Fuel Payment eligibility. The DWP reports that more than 40,000 new Pension Credit applications are now being submitted weekly, compared to the usual 20,000, indicating growing awareness of this valuable benefit.
Pension Credit is a means-tested benefit designed to top up weekly income for pensioners. For single claimants, it boosts income to £218.15, while couples can receive up to £332.95.
The Government is focusing on raising awareness of Pension Credit after its decision to restrict Winter Fuel AllowanceGETTYEligibility extends beyond these thresholds for those with disabilities, caring responsibilities, or housing costs.
As Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, explained: "Pension Credit is a hugely valuable benefit that not only tops up income but also acts as a gateway to other support such as a free TV licence for the over-75s as well as help with council tax."
The benefit also provides access to additional assistance, including Housing Benefit, council tax discounts, and help with NHS costs.
Despite its value, many eligible pensioners mistakenly believe they don't qualify due to savings or home ownership, highlighting the need for increased awareness and uptake of this crucial support.
In July, Rachel Reeves announced that Winter Fuel Payments would be restricted to those receiving means-tested benefits like Pension Credit.
This decision, aimed at addressing a £22bn deficit in public finances, is expected to reduce the number of pensioners receiving the payment from 11.4 million to 1.5 million.
The announcement has sparked a surge in Pension Credit applications. In the eight weeks following the July 29 announcement, approximately 74,400 claims were made, compared to just 29,500 in the preceding eight weeks. T
his dramatic increase suggests that the message about Pension Credit's importance is reaching more people. However, the DWP continues to urge eligible pensioners to apply, as many are still missing out on this vital support.
To check eligibility for Pension Credit, pensioners can use the online calculator on GOV.UK or contact the Pension Credit helpline directly on 0800 99 1234.
The online tool requires details of income, savings, and investments for both the applicant and their partner, if applicable.
Applications can be started up to four months before reaching state pension age and can be backdated for up to three months.
Importantly, new claims submitted before December 21, 2024, if successful, will qualify for a backdated Winter Fuel Payment.
The DWP emphasises the urgency of applying before this deadline to ensure maximum benefits. Pensioners can apply online, by phone, or by post.
Those unsure about their eligibility are strongly encouraged to check, as many misconceptions about savings and home ownership often deter eligible individuals from claiming this valuable support.