Four reasons why your Pension Credit could be STOPPED and how to avoid losing benefit cash worth £3,900 a year

PENSION Credit payments can be stopped or cut for many reasons, so it’s important to be clued up to make sure you don’t get cut off.

Households could see their cash flow stalled if they fail to meet the requirements set out by the government’s Pension Service.

Your payments could be affected if there’s a change in your personal or financial circumstances.

This can include things like moving house or switching bank accounts.

And it’s more important than ever to make sure you don’t lose your entitlement to Pension Credit – which is worth on average £3,900 a year alone – as it can unlock other payments, including the winter fuel payment.

The winter fuel payment, worth up to £300, was previously available to everyone over the state pension age (66).

However, cuts made by chancellor Rachel Reeves mean the payment is limited to around 1.5million retirees on pension credit or those receiving certain six other means-tested benefits.

We have compiled a list of reasons why your Pension Credit could be cut, which you can check below.

Of course, it’s important to check the DWP website, or contact the department directly, if you think something has happened that could affect your payments.

Changes to your money

You need to tell the Pension Service if there have been any changes to your household income, according to Citizen’s Advice.

That’s because your income affects the amount of pension credit you get – and if you get it at all – meaning payments could be stopped altogether in some cases if your income increases beyond the eligibility threshold.

Your income can go up or down for a number or reasons, for instance if you start to receive other benefits, or if another benefit payment stops, including tax credits.

A change in your pension, savings or investments can also cause your Pension Credit eligibility to change, for example if you start getting a new pension or take a lump sum from your pension pot.

Plus, if you start or finish employment or self-employment, you will need to inform the Pension Service.

Of course a reduction to your income could also mean that you’re entitled to higher payments too.

You should also let the government know if you have increased costs like service charge or ground rent too, as this could increase your payments.

It’s not just your own financial circumstances that could affect your claim.

If someone else in your house starts receiving more or less money from benefits or work, you will need to tell the Pension Service.

Change to personal details

The Pension Service will need to be told if you change important personal details like your name, or if you move house.

You will also need to report if people move in or out of your home.

You have to tell them even if it seems like a small change, or it’s only for a short time.

For example, you’ll need to tell them if someone in your house moves out – even if they’re planning to move back in.

Going into hospital, a care home or sheltered accommodation could also have a baring on your Pension Credit payments.

You should tell the Pension Service as soon as possible about any changes to avoid this.

It may sound obvious, but make sure you inform the government if you change bank accounts and you’ll need your payment to be sent elsewhere.

Family or relationship changes

Getting married, divorced or entering a civil partnership could affect your Pension Credit payments.

The same goes for if you have a partner move in with you, or leave your home.

If you start living with a partner who’s under the State Pension age, your pension credit will stop.

Instead you might be eligible for Universal Credit under the pension credit rules for mixed age couples.

Once both of you are over the state pension age, you could be eligible for Pension Credit again.

If you’re a carer and you stop providing care for someone, you will need to tell the Pension Service.

Additionally, if you get extra Pension Credit for looking after a child, you must tell the Pension Service if the child stops living with you.

It’s also important to tell the service if your partner, or someone you live with dies.

Leaving the UK

You can claim Pension Credit for up to four weeks if you are abroad.

This is extended to eight weeks if the absence is due to the death of your partner or a child.

If they are receiving medical treatment, this can be extended to a maximum of 26 weeks.

You will need to tell the Pension Service if you plan to leave the UK for more than four weeks.

You’ll stop getting Pension Credit if you leave the UK permanently.

How do I report a change of circumstances?

You will need to call the Pension Service and tell them about the change.

You can get someone else to call on your behalf, but you must be with them when they call.

You can reach the service on 0800 731 0469. Calls are free from mobiles and landlines.

After you’ve called, Citizen’s Advice say that it’s best to write a letter to the Pension Service to confirm the change.

In the letter, you should explain what the change is and when it happened.

Ask the Post Office for proof of postage – you might need to show when you sent your letter.

You can find the address of your nearest Pension Centre on GOV.UK.

What to do if your payment has been deducted?

If you don’t tell the government about a change straight away, or gave the wrong information, you might be asked to repay money.

This could reduced the amount you get each month, and even reduce it to zero in some cases.

You can dispute deductions from your Pension Credit payments. This is know as mandatory reconsideration.

You can ask for mandatory reconsideration if any of the following apply:

• You think the office dealing with your claim has made an error or missed important evidence
• You disagree with the reasons for the decision
• You want to have the decision looked at again

It is free to do this, but you usually need to ask for the reconsideration within one month of the date of the decision.

You can ask for it after one month if you have a good reason, for example if you’ve been in hospital or had a recent bereavement.

It always worth using a benefits calculator if you predict your circumstances will change.

This will allow you to budget for the future and also give you a heads up on whether or not you should speak to your council to ask for advice.

There are a number of benefit calculators online on charity websites such as Turn2us, Policy in Practice and Entitledto.

You can also visit your local Citizens Advice for any questions about how much you benefits you are owed.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

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