The Department for Work and Pensions will write to the 12.9 million people currently claiming the State Pension before the payments increase on April 7.
Of these, 4.1 million receive the New State Pension (post-April 2016), and 8.8 million receive the Basic (or Old) State Pension (pre-April 2016).
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Both the New and Basic State Pensions will rise by 4.1% in April under the earnings growth measure of the Triple Lock, as announced in the autumn budget.
Some of the other DWP benefits available to pensioners will increase by 1.7%, in the same way as working age and disability benefits.
Pensioners should check the amount they will receive, and be sure to read the leaflet included with the letter, which – if eligible – could increase their annual income by an average of £4,200.
It’s a prompt to claim Pension Credit, which is now more vital than ever, as it is the gateway to means tested payments, such as the annual Winter Fuel Payment and free TV licenses.
Who is eligible for pension credit?
Pension Credit is the most under-claimed benefit, aimed at providing extra financial support for older people on low incomes – both singles and couples.
You must live in England, Scotland or Wales and have reached State Pension age to qualify for Pension Credit. To qualify, you’ll need to have a weekly income of less than £218.15 if you’re single or £332.95 if you have a partner.
If your income is higher, you may still be eligible for Pension Credit if you have a disability, you care for someone, you have savings or you have to pay certain housing costs, such as mortgage interest payments.
It used to be the case that couples, where one person was over state pension age, could claim, but new rules now mean that both people in a couple must be over state pension age to apply. So, if you’re single and move in with a partner who is younger than the threshold, you will stop being eligible.
But if you’re already receiving pension credit under the old system it won’t stop unless your circumstances change.
What counts as income?
Your income could be things like
- State Pension
- Private pensions
- Earnings from employment and self-employment
- Most social security benefits, for example
Carer’s Allowance
The following benefits aren’t classed as income:
- Adult Disability Payment
- Attendance Allowance
- Christmas Bonus
- Child Benefit
- Disability Living Allowance
- Pension Age Disability Payment
- Personal Independence Payment
- social fund payments like Winter Fuel Allowance
- Housing Benefit
- Council Tax Reduction
If you’re entitled to a personal or workplace pension and you have chosen not to claim it yet, the amount you’d expect to get still counts as income. This includes your State Pension.
Having savings and investments can make a difference to whether or not you are eligible.
- Up to £10,000 in savings and investments this will not affect your Pension Credit.
- If you have more than £10,000, every £500 over £10,000 counts as £1 income a week.
For example, if you have £11,000 in savings, this would be considered as £2 income a week.
How to claim Pension Credit
You can claim the benefit online or by calling the Pension Credit claim line on 0800 99 1234.
Before you ring up it’s worth having your details ready and to hand – this is things like your National Insurance number, bank account details and information about your income, savings and investments.
How much you’ll get
Pension Credit tops up your weekly income to £218.15 if you’re single, or £332.95 between you if you have a partner. You may get extra amounts if you have other responsibilities and costs.
For example, if you have a severe disability, you could get an extra £81.50 a week, and those who look after children or a young person could get an extra £66.29 a week for each one you’re responsible for.
This is £76.79 a week for the first child if they were born before April 6 2017. If the child or young person is disabled, you could also get an extra payment on top of that.