- Low-income retirees have just a few days to make a Pension Credit claim which would trigger the Winter Fuel Payment, worth up to £300
- Following Rachel Reeves’ decision to means-test the Winter Fuel Payment, only those who successfully claim Pension Credit for the ‘qualifying week’ of 16-22 September 2024 will receive a payment
- Pension Credit claims can be backdated up to three months, meaning Saturday 21 December is the final deadline to make a claim for the qualifying week
- Up to 880,000 households could be missing out on over £3,900 a year in Pension Credit payments, according to the government (Pension Credit: What you need to know - GOV.UK)
- You can check if you might be eligible for Pension Credit by using the government’s online tool (Pension Credit calculator - GOV.UK) or calling the Pension Credit claim line (Tel: 0800 99 1234)
Tom Selby, director of public policy at AJ Bell, comments:
“Chancellor Rachel Reeves’ controversial decision to means-test the Winter Fuel Payment means it is more important than ever that low-income retirees claim Pension Credit this year. The average Pension Credit claim is worth over £3,900 a year, according to the government, but the benefit has historically been chronically underclaimed, with over a third of households who could be eligible failing to make a claim each year*.
“Even a claim for a small amount of Pension Credit top-up during the ‘qualifying week’ of 16-22 September should trigger a Winter Fuel Payment worth up to £300. Because of the way the backdating rules work, the deadline for making a claim for this period is just a few days away on 21 December.
“Alongside the income top-up and Winter Fuel Payment, those in receipt of Pension Credit are also entitled a range of other valuable benefits, including help with heating costs, housing benefit, dental treatment and free TV licenses (if you are aged 75 or over).
“While the process of claiming Pension Credit can feel unfamiliar and intimidating, it is worth doing if you think you might qualify as you could boost your income by thousands of pounds. The DWP offers a useful online tool to check if you might qualify for Pension Credit before going through the application service, or you can contact the Pension Credit claim line to discuss your eligibility. Organisations like Citizens Advice and Age UK are also a great source of independent information and help.”
Pension credit explained
Pension Credit is a key benefit provided by the state which often tends to go unclaimed by lower income retirees.
In 2024/25, if you are over state pension age (66), single and your income is less than £218.15 a week then pension credit will top you up to that amount. For a couple, the combined income figure is £332.95.
In relation to Pension Credit, your income includes your state pension, other pensions, employment or self-employment earnings and most social security benefits. As with the state pension, it is up to you to claim Pension Credit.
For those who are entitled to receive it, claiming Pension Credit is also really important because it acts as a gateway to other benefits, such as help with heating costs, housing benefit, dental treatment and free TV licenses (if you are aged 75 or over). The decision to end universal Winter Fuel Payments means it also becomes a gateway to the means-tested Winter Fuel Payment.
*Source: Income-related benefits: estimates of take-up: financial year ending 2023 - GOV.UK
