State pensioners on high incomes to be handed nearly £4,000 due to DWP loophole

A little known loophole could see pensioners on higher incomes get an extra £3,900 a year. Pensioners can still qualify for Winter Fuel Payments this year if they make a successful claim for Pension Credit before December 21, 2024 from the Department for Work and Pensions ( DWP ).

Sarah Pennells, consumer finance specialist at Royal London explained that those on a higher income than this may still be able qualify if they "have a disability, care for someone, have savings, or have housing costs." She said: "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."

Discussing the pension, a state pensioner wrote into Martin Lewis' Money Saving Expert and said: "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.

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"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." Ms Pennells said: "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.

“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." Martin Lewis explained that high housing costs are taken into account when applying for Pension Credit.

This could allow individuals earning above the standard threshold qualify for the benefit, potentially leading to additional benefits such as council tax reduction or Housing Benefit.