Over one million pensioners in the UK should be aware of a crucial rule from the Department for Work and Pensions (DWP) that could result in missing out on a monthly Pension Credit payment. Failing to notify the DWP about any holiday plans can lead to penalties.
What is Pension Credit?
Pension Credit is a means-tested benefit that provides financial support to those aged 66 and over who may need extra help with their living costs.
The average annual payout is £4,200, aimed at supplementing the income of pensioners on a budget.
Apart from financial support, it can also lead to Council Tax reductions and assistance with heating bills, such as Winter Fuel Payments.
Why Should Pensioners Notify the DWP About Travel Plans?
If you’re a recipient of Pension Credit, it is vital to notify the DWP if you’re planning any trips away from mainland Britain. This includes travel to Northern Ireland, the Isle of Man, or the Channel Islands.
As per guidance from GOV.UK, any absence, even if short, requires notification. The DWP recommends notifying them in advance to avoid missing out on payments or facing penalties. This rule applies to all trips, regardless of duration.
Key DWP Guidelines for Absences
- Up to 4 weeks: Pension Credit may be paid while you’re temporarily away from Great Britain.
- Up to 8 weeks: If the trip is related to a death, you may be eligible for an extended payment period.
- Up to 26 weeks: For medical treatment or medically approved convalescence, you may qualify for a longer absence period.
For more detailed guidance, check GOV.UK.
The Pension Credit Eligibility Gap
Recent DWP data highlights a significant issue: approximately 760,000 eligible individuals are not claiming Pension Credit despite qualifying for it.
Many seniors mistakenly believe they don’t qualify due to savings or homeownership, but Pension Credit can still provide much-needed support for housing costs, heating bills, and Council Tax. Even a small amount of £1 per week can unlock additional benefits.
Who Can Claim Pension Credit?
Pension Credit is available in two forms: Guarantee Credit and Savings Credit. Below are the eligibility criteria for each:
Guarantee Credit
- You must be over State Pension age (66).
- Your weekly income must be below the government’s minimum living amount:
- £218.15 for single individuals
- £332.95 for couples
- You may qualify for higher amounts if you’re disabled, act as a carer, or have special housing costs.
Savings Credit
- Available only to individuals who reached State Pension age before April 6, 2016 or to couples where one partner did so and already received Savings Credit.
- You need a qualifying income of at least:
- £189.80 a week for a single person
- £301.22 a week for a couple
How Much Could You Receive?
Guarantee Credit
- £218.15 per week for a single person.
- £332.95 per week for a couple (whether married, in a civil partnership, or cohabiting).
- Additional amounts may be available if you’re disabled, a carer, or have certain housing costs.
Savings Credit
- Up to £17.01 per week for a single person.
- Up to £19.04 per week for a couple.
- The actual amount depends on your income, including any assumed income from savings and capital exceeding £10,000.
Estimate Your Pension Credit
To check if you qualify and to get an estimate of how much you may receive, visit the Pension Credit Calculator on GOV.UK.
Alternatively, you can contact the Pension Credit helpline at 0800 99 1234 for assistance. The helpline operates 8 am to 6 pm, Monday to Friday.
It’s essential for UK pensioners to stay informed about Pension Credit rules, particularly regarding travel plans. A simple notification to the DWP can help avoid disruptions to your payments and ensure you receive the benefits you’re entitled to.
FAQs
Do I need to notify the DWP if I’m only going on a short holiday?
Yes, even if your absence is brief, you must notify the DWP to ensure you don’t miss out on your Pension Credit payments.
What happens if I don’t notify the DWP about my travel plans?
Failing to notify the DWP could result in a penalty, and you may lose out on your Pension Credit payments during your absence.
How can I claim Pension Credit?
You can apply for Pension Credit online via the GOV.UK website or by calling the Pension Credit helpline at 0800 99 1234.