Pension Credit, a financial assistance program aimed at providing extra support to individuals beyond the state pension age, is significantly underutilized despite its potential benefits. Recent statistics indicate a notable decrease in the number of applications for Pension Credit compared to the previous year, with a drop of 16%. Experts are warning eligible households not to delay claiming as they could be entitled to receive up to £4,300 annually.
According to Lisa Picardo, Chief Business Officer UK at PensionBee, there are approximately 700,000 eligible pensioner households missing out on potential support of up to £4,000 per year. The low uptake rates, ranging from 61% to 66% over the past decade according to government data, emphasize the urgent need for clearer communication, simplified claims processes, and a cohesive national strategy to ensure all eligible households receive their rightful benefits.
Pension Credit serves as a supplementary income for individuals with low earnings above the state pension age. Single individuals may see their weekly income increase to £227.10, while couples could receive a combined weekly boost of up to £346.60 through the guarantee credit component.
Additionally, there is a savings component within Pension Credit offering up to £17.30 weekly for single individuals and up to £19.36 weekly for couples. This component is accessible to those who reached state pension age before April 6, 2016, and saved money for retirement through schemes like employer pension plans.
Furthermore, Pension Credit provides access to various benefits and support mechanisms to alleviate financial pressures, including housing benefits, Winter Fuel Payment, council tax reductions, and a complimentary TV license for individuals over 75. Certain groups such as carers, those with severe disabilities, or individuals caring for children may qualify for additional payments under Pension Credit.
Eligibility for this means-tested benefit considers factors such as savings, income, and investments. More information on eligibility criteria and application procedures can be found on Gov.uk.