What is Pension Credit?
Pension credit a vital source of income for the older generation to help them cope with the rising prices if they have a low income and cannot properly support themselves financially. It helps keep a roof over their head and pay additional bills every month. Many UK citizens who are over the pension age struggle with the rising prices and are unable to make ends meet every month which is why pension credit is a vital source of income and support for them. It helps make retirement more comfortable knowing they can face the challenges that come with it. Pension credit is not the same as state pension; they are separate from each other.
Pension credit is available even if you have other sources of income, as it is meant to support you if your income is not adequate. Payments that won’t affect it include disability payments, housing benefits, and child benefit.
Pension Credit as Support:
Pension credit is a vital support for those in need because of the flexibility of the benefits it provides. If you are renting the house pension credit will help you pay the rent, or the mortgage if you own the house. It can also help with energy costs to help battle the rising prices. Other benefits include NHS treatments like dental and transport to hospitals. Do not hesitate if you feel like you or a family member need pension credit because it is designed to make the lives of the pensioners easier. If you are over the age of 75 you get a free TV licence. If you are caring for someone, it can add up to £45 a week to your pension credit. If you have a disability you can get up to £81 a week.
Other payments you can qualify for are cold weather payments if the weather is too cold, and winter fuel payment, which will now only be given to individuals who claim pension credit. You may also receive discounts on your council tax payments.
Information You Will Need to Claim Pension Credit:
- Your National Insurance (NI) number.
- Your income including your pensions.
- How much savings and investments you have. Saving over £10,000 will lower your pensions credit. For every £500 over this threshold, £1 is deducted.
- If you have a partner, then her/his details.
- You and your partner are both over state pension age.
- Housing costs such as mortgage, interests, service charges or rent.
- You bank account details.
Assessed Income Period (AIP) in Relation to State Pension
This is a period of time where you do not need to report any changes to your pensions, savings or investments. You do need to report other changes. If you are receiving pension credit, they will let you know if you have AIP. AIPs typically last for 5 years but can end early if you have a partner or if you don’t have one anymore. Other reasons can be if he enters a care home or is no longer entitled to pension credit.
Universal Credit:
Universal credit is available if a couple does not qualify for pension credit. A couple might not be eligible for pension credit if one of them has not reached pension age. To qualify for pension credit, both of you must be over pension age, and your weekly income is £332.95. If you are single you are limited to £218.15. You can still qualify for pension credit; it is better to check as other qualifying factors like having a disability or caring for someone.
Checking if You Qualify for Pension Credit:
You can claim your pension credit by clicking this link and scrolling down to the green button. You can also call 0800991234. It is always better to check if you are not sure, as there are other qualifying factors, like if one of you has been claiming pension credit before the change in law, in May 2019.
Pension Credit Delays:
When the cost-of-living crisis became a serious problem in 2022, many pensioners were encouraged by government campaigns to get their pension credit to help soften the shock. While the answer usually takes 6 weeks, there were delays reported, with some pensioners waiting months for a response.
A survey conducted by Great Manchester Law Centre in association with National Association of Welfare Rights Advisors (NAWRA) showed that there is a delay in the process, with many claimants waiting more than 6 months for it to be processed. The problem with the delay is the negative effect it can have on other support the claimants need, like housing benefits and reductions in council tax. Some reasons for the delay involved having to=rouble getting the right documents and financial records of claimants, or the advisors not being fully aware of the laws and not having proper training. As some claimants can be having serious problems like being evicted or suffering from serious disease like cancer, it is important to try and bring the time down to the targeted 6 weeks. We are yet to see if this will happen, as 2022 saw a big decline in service, which can be related to the rising number of claims as people feel the pinch of the cost-of-living crisis.
Many advisors have to chasse behind applications, and because there is a rising number of applicants, they try to focus on those most needy of their pension credit. The DWP has increased its staff since, but the question remains if they will be able to get applicants their money in less than 6 weeks.
Claim Your Pension Credit:
It is worth it to still claim your pension credit, as successful claims are backdated and paid in full. While the process might be tiring and long, it is important that you claim your support especially during these hard times. Pension credit is designed to make your life easier, and it can be useful to explain your situation to the advisor so that he can make your application a priority. While this should not be the way things are, the rising number of applicants will probably make it harder for people to get their pension credit payments in less than 6 weeks. The DWB, however, is working with all stakeholders to help see how best to improve the process and make it better and easier for pensioners. Do not hesitate and apply for your state pension today.
