Sunrise Care Advisers – Helping you navigate through the care system

For my September 2023 blog, I wrote about Pension Credit Myths that often stop people from claiming the benefit.

Given the recent decision by the present government to stop Winter Fuel payments to anyone not receiving Pension Credit, I have decided to update that blog.

This is longer than my usual blogs, but I make no apology for this.

The Department for Work and Pensions (DWP) estimates that nearly one million (1,000,000) pensioner households may be entitled to an average annual income boost of more than £3,600. Still, they do not claim it because they wrongly believe some myths and misconceptions about the benefit.

Understanding these myths and their realities is crucial to ensuring eligible individuals receive the support they’re entitled to.

Pension Credit is a means-tested benefit in England that provides financial support to eligible individuals or couples who have reached the state pension age.

Pension Credit increases a person’s income by a minimum of £218.15 per week for single pensioners and £332.95 for couples.

Myth 1: People believe that having savings, investments, or a private pension means they aren’t eligible for Pension Credit.

Reality: You can still qualify for Pension Credit even with savings or a private pension. Your savings might affect the amount you receive, but having them doesn’t automatically disqualify you.

Myth 2: People think that homeowners can’t claim Pension Credit.

Reality: Owning your home doesn’t disqualify you from receiving Pension Credit. Your eligibility is based on your income and savings, not your property ownership.

Myth 3: People often assume that they would only receive a small amount of money, so it’s not worth the hassle of applying.

Reality: Even if you only qualify for a small amount of Pension Credit, it can be worth applying because it may entitle you to other benefits, such as: Winter Fuel Payments, a free TV licence, help with Housing Costs, or help with Council Tax, Cold Weather Payment, Warm Home Discount, help with NHS dental treatment, glasses and transport costs, a discount on the Royal Mail redirection service if you’re moving house

Myth 4: People believe they cannot claim Pension Credit if they live with a partner who is still working.

Reality: You can still claim Pension Credit if your partner works and your joint income is below a certain threshold. It’s worth checking whether you’re eligible as a couple.

Myth 5: People often think that receiving the State Pension means they aren’t eligible for Pension Credit.

Reality: You can receive both the State Pension and Pension Credit. Pension Credit is designed to increase your income if your State Pension and other income sources are low.

Myth 6: People worry that Pension Credit is a loan that needs to be repaid.

Reality: Pension Credit is not a loan but a benefit you don’t have to repay. It’s there to help you if you’re on a low income.

Myth 7: For some, there is sometimes a stigma associated with claiming benefits, leading some to believe they shouldn’t apply.

Reality: Pension Credit is an entitlement, not a handout. It’s designed to help those who have paid into the system throughout their lives. Claiming what you’re entitled to can improve your quality of life without stigma.

Myth 8: People believe the application process is too difficult or time-consuming.

Reality: The Pension Credit application process has been streamlined and can be completed over the phone, online, or by post. Help is also available if you need it.

Myth 9: There is a misconception that Pension Credit is only for those financially struggling or in poor health.

Reality: Pension Credit is based on income levels, not health or financial hardship. Even if you manage well, you could still be eligible based on your income and savings.

Myth 10: People believe that as their income is already over the minimum of £218.15 per week for single pensioners and £332.95 for couples, they cannot claim Pension Credit.

Reality: If your income is higher, you might still be eligible for Pension Credit if you have a disability, care for someone, have savings, or have housing costs.

You can apply for Pension Credit online, by phone, or by post. You must provide details about your income, savings, and investments.

Here are some useful links:

Government Provided Pension Credit Calculator https://www.gov.uk/pension-credit-calculator

If you get Pension Credit, you can also get other help, such as:

Sunrise Care Advisers provides support and care advice to help you navigate through the care system, so you can manage the care needs of elderly relatives.
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