Amount you need to earn under to claim Pension Credit worth £3,900 every year – plus up to £300 Winter Fuel Payment

IF you’re retired and on a low income, you should check to see if you’re eligible for Pension Credit.

The government says that around 880,000 people are missing out on the retirement top ups, even though they would qualify if they applied.

It estimates that the benefit is worth £3,900 each year on average, but for people who have a disability or caring responsibilities the amount could be far higher.

As well as topping up your income each month, Pension Credit also acts as a gateway for lots of other important and valuable benefits.

For instance, this year the new Labour government announced that the Winter Fuel Payment – worth £200-£300 depending on your age – would no longer be universal.

Instead, you need to receive Pension Credit to keep getting the benefit.

Similarly, in 2020, the BBC changed the rules about free TV licenses for over-75s, announcing that only those on Pension Credit will qualify for the perk.

Other benefits that Pension Credit might make you eligible for include: cold weather payments, help with your council tax bills, support for mortgage interest payments, help with NHS costs, and housing benefits if you rent.

Work and Pensions Secretary, Liz Kendall said: “Thousands of pensioners are missing out on Pension Credit worth on average £3,900 per year. That needs to change.

“It’s easier than ever to check if you are eligible, including with our online calculator, and if your circumstances have changed since the last time you looked – I urge you to check again.”

How much is the benefit worth – guarantee element

Pension Credit tops up your weekly income to £218.15 if you are single or to £332.95 if you have a partner.

That typically means that you need to earn less than those figures to qualify for the benefit.

However, DWP says if your income is higher than that, you might still be eligible for Pension Credit if you have a disability, care for someone,  have savings or have housing costs.

For instance, you could get an extra £81.50 a week if you get any of the following benefits:

• Attendance Allowance
• the middle or highest rate from the care component of Disability Living Allowance (DLA)
• the daily living component of Personal Independence Payment (PIP)
• Armed Forces Independence Payment
• the daily living component of Adult Disability Payment (ADP) at the standard or enhanced rate

That means a single person could get a cash top up if they earned less than £299.65 a week.

You could also get an extra £45.60 a week if you get Carer’s Allowance or Carer Support Payments and an extra £66.29 a week if you’re responsible for a child or children. This rises again if you’re responsible for a child with a disability.

Use the Pension Credit calculator to find out if you’re likely to be eligible and to get an estimate of how much you could get.

Savings credit

You could get the ‘Savings Credit’ part of Pension Credit if both of the following apply:

1. you reached State Pension age before 6 April 2016
2. you saved some money for retirement, for example a personal or workplace pension

You’ll get up to £17.01 Savings Credit a week if you’re single, which works out as £884.52 a year. If you have a partner, you’ll get up to £19.04 a week, or £990.08.

You might still get savings credit even if you do not get the main guarantee part of Pension Credit.

How to apply

Applications for Pension Credit can be made online, over the phone by calling 0800 99 1234 (Monday to Friday 8am to 6pm), or by printing out and filling in a paper application form. You can also call the claim line to request a form.

You can start your application up to four months before you reach State Pension age. Be warned, your application can only be backdated by three months.

So, it’s worth applying as soon as possible if you think you are eligible. You might get three months of Pension Credit in your first payment if you backdate.

You’ll need the following information about you and your partner:

• National Insurance number
• information about any income, savings and investments you have
• information about your income, savings and investments on the date you want to backdate your application to 
• bank account details including your bank or building society name, sort code and account number.