The Department for Work and Pensions is urging people who “have savings” to come forward for a free £4,200 handout. The DWP is raising awareness of Pension Credit, which is worth £3,900 on average but also unlocks a Winter Fuel Payment worth £300.
The DWP has busted some Pension Credit myths, saying older people may wrongly think they are not eligible because they have savings, own their own home, may be working, may be getting a small occupational pension and may have been turned down in the past.
Other factors may be that they do not want to be seen as needing to claim, feel that they’re able to manage, do not think it’s worth applying – as the amount they get will be very small, do not recognise themselves as a Pension Credit claimant, have not got around to it, think it’s a complex and confusing subject or already get other help and do not want to mess up the benefits they are getting.
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The DWP said: “Some 1.4 million older people across Great Britain, including over 125,000 living in Scotland currently receive the extra financial support.” The DWP says the average Pension Credit payment is actually over £75 per week – that’s well over an extra £3,900 per year.
It said: “Plus, getting Pension Credit can provide a passport to help with things like rent, Council Tax, Winter Fuel Payment, Pension Age Winter Heating Payment (Scotland only), Winter Heating Payment (Scotland only), Cold Weather Payments (not Scotland) and a free TV licence for people aged 75 and over.”
Unlike other income related benefits like Universal Credit, there is no capital cut-off limit and for Pension Credit savings of under £10,000 are ignored. The DWP explains that homeowners can get Pension Credit too and that almost half of the people who get Pension Credit own their own home.
People can claim as soon as they reach the qualifying age, which is now State Pension age – 66 for both men and women. The DWP said that they may be entitled to Pension Credit – even if they’re not entitled to a State Pension.
And the DWP said that personal circumstances could have changed and their income or capital may have changed as a result. The first £10,000 of savings will be ignored when working out if someone can get Pension Credit. The DWP has simplified the process and people can claim with one free phone call to the Pension Credit claim line.