Many of pensioners receiving Pension Credit are set to see their payments rise from July after the Department for Work and Pensions (DWP) increased the benefit by 4.8 per cent.
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Under the updated rates, eligible couples will receive up to £363.25 a week through Guarantee Credit, up from £346.60. The increase of £16.65 a week works out at around £66.60 a month in additional support. Single pensioners will also benefit, with the Guarantee Credit threshold rising to £238 a week, as cited by GB News.
The increase is part of the government’s annual uprating of benefits and is designed to help pensioners on lower incomes cope with rising living costs. Payments reflecting the new rates are expected to begin from July.
Eligibility and application requirements
Guarantee Credit is the main component of Pension Credit and ensures that pensioners receive a minimum level of weekly income. It is available to those who have reached State Pension age and whose income falls below the set thresholds.
However, Pension Credit is not paid automatically. Eligible individuals must apply to receive it. Many pensioners who qualify are believed to be missing out because they have not submitted a claim.
In most cases, couples can only apply if both partners have reached State Pension age. There are some exceptions, including for those who reached State Pension age before May 15, 2019, and have been continuously receiving Housing Benefit since that date. Individuals may also be able to claim separately if their partner is not eligible due to immigration status.
Income, savings and assessment rules
When applying, claimants need to provide details of their income, including State Pension payments, private pensions, earnings from employment, and other benefits such as Jobseeker’s Allowance or Employment and Support Allowance. Couples must include financial information for both partners.
Savings and investments are also taken into account. The first £10,000 of savings is ignored, but any amount above this is treated as generating additional income. For every £500, or part of £500, above £10,000, claimants are assumed to have an extra £1 a week in income.
Additional support
Additional support may be available depending on individual circumstances. Pensioners with severe disabilities could receive an extra £86.05 a week if they qualify for benefits such as Attendance Allowance, the middle or highest rate care component of Disability Living Allowance, or the daily living component of Personal Independence Payment.
Further payments may also be available for carers. Those receiving Carer’s Allowance or Career Support Payment, or those who have applied but are not paid due to overlapping benefits, may qualify for an additional £48.15 a week.
