Martin Lewis, renowned money expert, has revealed a little-known “loophole” that could enable pensioners to claim the Winter Fuel Payment, even if their income exceeds the threshold for eligibility. In his recent newsletter, Lewis outlined specific technicalities related to pension credit that many retirees may not be aware of, potentially missing out on support worth thousands of pounds.
To qualify for pension credit and subsequently the Winter Fuel Payment of up to £300, individuals must be above the state pension age (66+) and have a low income. The credit can top up weekly income to £218.15 for single individuals or £332.95 when shared with a partner. However, Lewis pointed out that there are exceptions where individuals with higher incomes may still qualify.
One such scenario is when a person has a disability or illness, which could raise the income threshold for eligibility. For those receiving attendance allowance (AA) to assist with extra costs related to disability, the income threshold to qualify for pension credit increases by £82 per week. In addition to the AA received, which ranges from £72.65 to £108.55 weekly depending on need, it is advisable for potential claimants to check with the Department for Work and Pensions (DWP).
Lewis also highlighted that individuals should not discount themselves from eligibility based on savings or investments, as assets up to £10,000 are not factored into the assessment. For every £500 over this limit, only £1 per week will be considered. Furthermore, substantial housing costs, such as high ground rent or service charges for assisted living, will be taken into consideration when applying for pension credit.
Currently, an estimated 800,000 eligible pensioners do not claim pension credit, often due to the complex nature of the process, associated stigma, or simply lack of awareness. Seen as a ‘passport’ benefit, pension credit provides access to various forms of support beyond the Winter Fuel Payment. It can unlock benefits like housing support, assistance with mortgages, a free TV licence, and aid with NHS dental appointments, potentially amounting to significant additional financial assistance.
Pensioners who suspect they may qualify for pension credit are encouraged to contact the DWP at 0800 99 1234 or apply online. By exploring these potential entitlements, retirees could access vital support that they may not have previously been aware of, significantly improving their quality of life and financial stability.