Payments for many pensioners on Pension Credit will increase from July after the Department for Work and Pensions (DWP) increased benefits by 4.8%.Under the updated rates, eligible couples will receive up to £363.25 a week on secured credit, up from £346.60. An increase of £16.65 per week equates to around £66.60 per month in additional support. Single pensioners will also benefit, with the guaranteed credit threshold rising to £238 a week, GB News reports.The increase is part of the government’s annual increase in benefits to help low-income pensioners cope with rising living costs. Payments reflecting the new rates are expected to begin in July.
Eligibility and application requirements
Guaranteed credit is a major component of pension credit and ensures pensioners receive a minimum level of weekly income. It applies to people who have reached state pension age and whose income is below a set threshold.However, pension credit will not be paid automatically. Eligible individuals must apply to receive. It is believed that many eligible pensioners missed out by not submitting claims.In most cases, couples can only apply if both parties are of state pension age. There are some exceptions, including those who reached state pension age before 15 May 2019 and have been receiving housing benefit since that date. Individuals may also apply separately if their partner is ineligible due to immigration status.
Income, Savings and Valuation Rules
When applying, applicants will need to provide details of their income, including state pension, private pension, employment income and other benefits such as jobseekers allowance or employment and support allowance. Couples must provide financial information about both parties.Savings and investments are also taken into consideration. The first £10,000 of savings will be ignored, but anything above this will be treated as generating additional income. For every £500 or part of £500 above £10,000, the claimant is presumed to have an additional £1 per week.Depending on individual circumstances, additional support may be available. Pensioners with severe disabilities can receive an extra £86.05 per week if they are eligible for benefits such as attendance allowance, the intermediate or top-rate care component of Disability Living Allowance or the daily living component of Personal Independence Payment.Carers may also receive further payments. Those in receipt of Carers Allowance or Occupational Support Payment, or those who have claimed but not been paid due to overlapping benefits, may be eligible for an extra £48.15 per week.
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