DWP to verify if Housing Benefit claimants may get £300 enhance

The Prime Minister and Chancellor Rachel Reeves have announced that the Department for Work and Pensions (DWP) will collaborate with local councils to ensure older people on Housing Benefit are also getting their due Pension Credit. This move is part of Labour’s fresh strategy to boost uptake of the benefit, which could lead to extra perks like the Winter Fuel Payment, potentially pocketing up to £300 annually.

Fresh stats from the DWP reveal that as of the end of May this year, over 1.1 million golden agers were snagging Housing Benefit. Meanwhile, Pension Credit is topping up the wallets of nearly 1.4 million pensioners, with an extra £3,900 a year.

Just this week, the Chancellor declared: “We are working with organisations such as Age UK and local authorities. All local authorities.”

Chancellor Reeves said: “The Department for Work and Pensions will also bring together the administration of Pension Credit and Housing Benefit, so that pensioner households receiving Housing Benefit will also receive any Pension Credit they are entitled to – something the previous Government deferred for years, despite knowing that the poorest pensioners were missing out”.

Sir Keir Starmer told the Commons that the Labour Government has had to “take tough decisions to stabilise the economy”, including means-testing the Winter Fuel Payment, reports the Daily Record.

Around 10 million people over State Pension age across Great Britain will now miss out on the annual heating bill help, worth between £100 and £300.

Sir Keir said: “Some 880,000 pensioners are not taking up Pension Credit, and we intend to turn that around. We will align Housing Benefit and Pension Credit – something the previous Government deferred year after year – and, because of our commitment to the Triple Lock, pensions are projected to increase by over £1,000 in the next five years.”

However, Labour MP Mary Glindon asked the Secretary of State for Energy Security and Net Zero if an assessment will be made of the “potential impact of means testing the winter fuel payment on levels of fuel poverty in the winter of 2024-25”.

Responding in writing this past Wednesday, Energy Consumers’ Minister Miatta Fahnbulleh MP stated: “The Department has not made an assessment of the potential impact of means testing the Winter Fuel Payment on levels of fuel poverty in winter 2024-25.”

Adding that “A statistical publication estimating the rate of fuel poverty for those in receipt of Winter Fuel Payment in 2023, and the proportion of households who would be in fuel poverty under new eligibility criteria, will be published in due course.”

Last summer saw a trial in Pension Credit where the DWP attempts to reach thousands of pensioner households enticing them to claim the benefit. The households were sought out via data gathered from local authorities.

This approach could potentially point to how the DWP intends to bring Housing Benefit in line with Pension Credit.

Housing Benefit alignment with Pension Credit highlighted

Following a trial last summer, DWP reached out to thousands of pensioner households encouraging them to apply for Pension Credit through a letter-writing campaign, utilizing data sourced from local councils. This initiative could signal the Department’s intention to reconcile differences between Housing Benefit and Pension Credit.

Current figures show that across Great Britain, 1,359,976 individuals claim Pension Credit, while pensioner Housing Benefit claims stand at 1,145,642a disparity of 214,334. It is crucial to remember that Housing Benefit is considered a legacy benefit and is currently transitioning claimants to Universal Credit.

Here’s a brief guide on Pension Credit, including who should check their eligibility, how to apply, and the potential benefits. It’s worth noting that even a Pension Credit award of just £1 per week can unlock additional financial support, such as Winter Fuel Payments.

How to check Pension Credit eligibility

Elderly individuals, or their friends and family, can swiftly verify their eligibility and get an estimate of potential benefits using the online Pension Credit calculator available on GOV.UK. Alternatively, pensioners can directly contact the Pension Credit helpline to make a claim at 0800 99 1234 – lines are open from 8am to 6pm, Monday to Friday.

Expert advice is also accessible from:

What is Pension Credit

Pension Credit provides extra funds to assist with living costs for those over State Pension age and on a low income. It can also grant access to a variety of other benefits.

The benefit increases income to a minimum of £218.15 per week for single pensioners and £332.95 for couples – more if an individual has a disability or caring responsibilities. Those with a severe disability, carers, and those responsible for a child or young person living with them could receive additional funds.

Additional assistance if you qualify for Pension Credit

If you’re eligible for Pension Credit, you can also receive other help, such as:

• Housing Benefit if you rent the property you live in
• Support for Mortgage Interest if you own the property you live in
• Council Tax discount
• Free TV licence if you are aged 75 or over
• Help with NHS dental treatment, glasses and transport costs for hospital appointments
• Help with your heating costs through the Warm Home Discount Scheme and Winter Fuel Payment
• A discount on the Royal Mail redirection service if you are moving house

Mixed-aged older couples and Pension Credit

In May 2019, the law was altered so that a ‘mixed age couple’ – a pair where one partner is of State Pension age and the other is below it – are deemed to be a ‘working age’ couple when assessing eligibility for means-tested benefits. This implies they can’t claim Pension Credit or pension age Housing Benefit until both partners reach State Pension age.

Prior to this change by the DWP, a mixed-age couple could qualify to claim the more generous State Pension age benefits when just one partner reached State Pension age.

Here’s how to use the Pension Credit calculator

To utilise the calculator on GOV. UK, you’ll need details of:

• earnings, benefits and pensions.
• savings and investments.

You’ll require the same information for your partner if you have one. You will be presented with a series of questions with multiple-choice answer options.

This includes:

• Your date of birth
• Your residential status
• Where in the UK you live
• Whether you are registered blind
• Which benefits you currently receive
• How much you receive each week for any benefits you get
• Whether someone is paid Carer’s Allowance to look after you
• How much you get each week from pensions – State Pension, private and work pensions
• Any employment earnings
• Any savings, investments or bonds you have

Once you’ve answered these questions, a summary screen displays your responses, allowing you to go back and alter any answers before submitting. The Pension Credit calculator then shows how much benefit you could receive each week.

All you have to do next is follow the link to the application page to find out exactly what you will get from the DWP, including access to other financial support.

There’s also an option to print off the answers you give using the calculator tool to help you complete the application form quicker without having to look out the same details again. Try the Pension Credit Calculator for yourself or your family member to make sure you’re receiving all the financial support you are entitled to claim.

Who cannot use the Pension Credit calculator?

You cannot use the calculator if you or your partner:

• are deferring your State Pension.
• own more than one property.
• are self-employed.
• have housing costs (such as service charges or Crown Tenant rent) which are neither mortgage repayments nor rent covered by Housing Benefit.

How to make a claim

You can start your application up to four months before you reach State Pension age. You can claim any time after you reach State Pension age but your claim can only be backdated for three months.

This means you can get up to three months of Pension Credit in your first payment if you were eligible during that time.

You will need:

• your National Insurance number.
• information about your income, savings and investments.
• your bank account details, if you’re applying by phone or by post.
• If you’re backdating your claim, you’ll need details of your income, savings and investments on the date you want your claim to start.

Apply online

You can use the online service if:

• you have already claimed your State Pension

• there are no children or young people included in your claim

To check your entitlement, phone the Pension Credit helpline on 0800 99 1234 or use the GOV.UK Pension Credit calculator here to find out how much you could get.