DWP urges pensioners to check if they’re eligible for £301 boost

The DWP is urging all pensioners on low income to check if they qualify for Pension Credit, a significantly underclaimed benefit that tops up the state pension and adds thousands to a person’s budget every year.

Those who claim the benefit by May 19 could also receive a cost of living payment of £301, worth £900 over the whole financial year.

A statement from the DWP reads: “Provided a claim is made before 19 May, it can be backdated for up to three months so long as the applicant was also eligible to receive it during that time.”

Laura Trott, minister for pensions, said: “Pension Credit can make a real difference and I am determined to make sure this support – worth an average of £3,500 a year – is reaching everyone who needs it, particularly as we know how much pressure households across the country have been under.

“Please check if you or your loved ones can claim this extra support, and if you do it by May 19, you could qualify for the £301 cost of living payment – giving another financial boost to those who need it most.”

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But even pensioners who miss the May 19 deadline can still claim Pension Credit, which is worth an average of £3,500 per year. It can also provide access for people to claim other financial support, such as housing benefit, council tax, NHS dental care, and more.

Who is eligible for Pension Credit?

Pension Credit rules can be complex but firstly, a person must live in England, Scotland or Wales and have reached the state pension age (currently 66). They or their partner could also be in receipt of housing benefit.

If this applies, the person should then work out their total weekly income. This is calculated to include the person’s state pension, other pensions, earnings from employment and self-employment, and other social security benefits, such as Carer’s Allowance.

People are most likely to be eligible for Pension Credit if their total weekly income is roughly under £200. However, if their income is higher, they might still be eligible, so it’s worth checking regardless.

If eligible, Pension Credit will then top up income to £201.05 per week for single pensioners and £306.85 for couples.

Commenting on the importance to check eligibility, Alice Guy, head of pensions and savings at interactive investor, said Pension Credit “provides a lifeline to millions on a low income” and for many, is the “only thing that stands between many pensioners and poverty”.

Ms Guys said: “It’s a huge worry that around 850,000 pensioners are entitled to Pension Credit and aren’t currently claiming. They are potentially living hand to mouth and struggling in poverty when there is help available.

“Two-thirds of those claiming Pension Credit are women and the burden of pensioner poverty falls disproportionately on women, who have often spent years out of the workplace, caring for loved ones.

“The onus is on us all to speak to elderly relatives and make sure they’re claiming everything they are entitled to. Many poorer pensioners have spent years caring for loved ones or living with a disability and have not managed to build up enough National Insurance credits to get a full state pension.”

People can check and claim online if they think they or someone they know may be eligible for Pension Credit, here.