Pension Credit payments to rise next month – how much will state pensioners get? | Personal Finance | Finance
Chancellor Jeremy Hunt confirmed the rate of DWP payments would be raised during his Autumn Statement last year. Among the benefits which will be awarded this rate boost in only a few weeks’ time is Pension Credit.
What is Pension Credit?
Those of state pension age who are on low income are entitled to this particular benefit payment.
Pension Credit is a top-up amount for eligible people’s retirement income which can assist with the rising cost of living and housing costs.
Some households are entitled to additional help if they are part of an economically vulnerable group, such as those who are disabled and carers.
As eligibility for Pension Credit is dependent on someone’s income, claimants will have to prove to the DWP they meet the criteria.
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How much is Pension Credit?
As it stands, eligible state pensioners can see their weekly income topped up to £182.60 if they are single.
If they have a partner, which includes spouses and civil partners, their joint weekly income is increased to up to £278.70.
Those who have a severe disability could be entitled to an extra £69.40 a week if they get a qualifying disability payment from the DWP.
If someone cares for another adult or a small child, they may be eligible for £38.85 and £56.35 a week, respectively.
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How much will Pension Credit rise to?
In October 2022, Mr Hunt announced that benefit payments, including Pension Credit, would be awarded a rate rise of 10.1 percent.
This aligns with the state pension triple lock which is using the Consumer Price Index (CPI) rate of inflation for September 2022 as its metric.
With this rate boost, the benefit payment for pensioners on low income will rise to £201.05 a week for single claimants.
Couples who claim Pension Credit will see their payments rise to £306.85 once the rate hike is implemented.
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Despite the availability of this pension boost, the DWP has reported a low turnout for claims for this benefit payment.
In response to this, experts have urged low-income households to consider applying for the support as soon as possible.
Caroline Abrahams, charity director at Age UK, shared how many pensioners are not in receipt of this pension boost who could benefit from it.
She explained: “There are so many good reasons to put in a claim for Pension Credit. Many older people are reliant on the state pension as their main source of income and just don’t have the flex in their finances to cope with the escalating cost of living.
“Putting in a successful claim could not only give a significant boost to your weekly income, it also opens the door to a wealth of extra support including help with energy bills.
“We know that around three-quarters of a million pensioners are missing out on this important benefit at the moment, so we are urging anyone who is experiencing any financial issues whatsoever to put in a claim without delay.
“The sooner people act, the sooner they will find out if they are eligible for some of the additional financial help that is now available which could have a life-changing impact on their finances over the coming months.”
The payment rate rise for Pension Credit, and other means-tested benefits from the DWP, will be introduced from April 10, 2023.
