Married people of State Pension age may be due a weekly income boost of up to £306, according to recent reports from the Department for Work and Pensions (DWP). While the State Pension payment increased by a record-breaking 10.1% last month, more than 1.8 million people over 65 are estimated to have a weekly income of less than £100. The DWP is encouraging low-income pensioners to check their eligibility for Pension Credit, an income-related benefit worth more than £3,500 each year on average.
The Basic State Pension now offers up to £156.20 per week, while the New State Pension offers up to £203.85 per week. However, many people do not receive the full amount, especially women who have accrued large gaps in their National Insurance contributions history due to time taken away from the workforce to care for family.
Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, warns that single pensioners and married couples receiving the lowest State Pension payments may be missing out on Pension Credit. The DWP launched a Pension Credit awareness campaign in April 2022 and is continuing to promote the benefit throughout 2023, including a dedicated “week of action” in June.
If you are over 65 and reached State Pension age before April 6, 2016, you could qualify for Pension Credit if your weekly income is less than £218.80 if single and £319.20 if a couple. The online calculator or the Pension Credit helpline (0800 99 1234) can determine eligibility.
In addition, low-income pensioners not already receiving Pension Credit are encouraged to check their eligibility before May 19, 2023, as they could qualify for the £301 cost of living payment if their application is successful and backdated up to three months. Pension Credit currently provides 1.4 million people across the UK with extra money to help with living costs if they are over State Pension age and on a low income.
If you qualify for Pension Credit, additional support is also available, such as housing benefit, support for mortgage interest, council tax discount, free TV licence if aged 75 or over, help with NHS dental treatment, glasses and transport costs for hospital appointments, help with heating costs through the Warm Home Discount Scheme, and a discount on Royal Mail redirection service if moving house.
Unfortunately, a “mixed age couple” – a couple where one partner is of State Pension age and the other is under it – are now considered to be a “working age” couple when checking entitlement to means-tested benefits. This means they cannot claim Pension Credit or pension age Housing Benefit until both partners reach State Pension age.
Key Takeaway: Married people of State Pension age could be due an income boost of up to £306 per week through Pension Credit. Eligibility can be checked through the online calculator or the Pension Credit helpline. Additional support includes housing benefit, support for mortgage interest, council tax discount, free TV licence, help with healthcare costs, and a discount on Royal Mail redirection service.
In conclusion, it is important for pensioners to check their eligibility for Pension Credit to ensure they are receiving all the support they are entitled to. While the recent State Pension payment increase is encouraging, it is not enough for those with a weekly income of less than £100. With an estimated 1.8 million people in this category, it is vital that awareness of Pension Credit is raised and more people check their eligibility.
