DWP loophole could see state pensioners on high incomes handed nearly £4,000 a year
by James Rodger · ChronicleLiveA lesser-known loophole could potentially boost the income of pensioners by an additional £3,900 annually. Those who are eligible for Winter Fuel Payments this year can still secure this benefit if they apply for Pension Credit from the Department for Work and Pensions (DWP) before the deadline of December 21, 2024.
Royal London's consumer finance specialist Sarah Pennells highlighted that even those with higher incomes might qualify under certain conditions such as having a disability, caring responsibilities, savings, or housing costs. She elaborated: "There are a number of reasons for this. If you receive benefits as part of your income, some benefits, such as Attendance Allowance or Personal Independence Payment, aren't taken into account when your income is being assessed."
In a letter to Martin Lewis' Money Saving Expert, a state pensioner shared their success story: "I've successfully claimed for my dad who has chronic arthritis - so he now gets an extra £72/wk. He has struggled for years, he'd not been able to claim Pension Credit previously as he has a small private pension."
The pensioner continued, revealing the financial uplift: "Now he has AA, he's also eligible for a further £35/wk Pension Credit, and his Housing Benefit has been increased by £40/wk."
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Ms Pennells commented on the common hurdles people face: "Some of the main reasons people miss out on Pension Credit are because they don't think they would qualify, or they don't check because they feel too ashamed to admit they need extra help. We need to spread the message that there is no shame in accepting help that is available.", reports Birmingham Live.
Martin Lewis highlighted a worrying trend, stating: "There is also a significant generational gap in awareness, which means family and friends aren't prompting their loved ones to check if they qualify."
He pointed out that when applying for Pension Credit, high housing costs are considered, which could mean individuals earning above the standard threshold might still be eligible for the benefit. This, in turn, could unlock access to further financial support like council tax reduction or Housing Benefit.
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