Pensioners can boost annual income by over £10,000 through two benefits
Older people on a low income or living with a long-term health condition could be due extra financial help on top of their State Pension.
Pension Credit – Could you or someone you know be eligible?
Many of the 13 million pensioners across the UK may not be aware they could be eligible for two separate benefits, worth a combined total of up to £10,040 over the 2025/26 financial year. One of the benefits is not means-tested and aims to help older people with long-term health conditions while the other can provide extra financial support to those on a low income.
Pension Credit helps those over State Pension age on a low income by boosting annual income by an average of £4,300, while Attendance Allowance or Pension Age Disability Payment (PADP) can provide additional financial support of up to £441.60 every month - some £5,740.80 each year.
Both these payments are paid separately from the State Pension, which is now worth up to £230.25 each week, or £921 every four-week payment period. The full, New State Pension will be worth £11,973 this year.
The Department for Work and Pensions (DWP) estimates 760,000 are eligible for Pension Credit and not claiming the income-related benefit.
Similarly, over one million pensioners are believed to be eligible for Attendance Allowance, which is not affected by income or savings, is tax-free and is not counted as income when it comes to claiming Pension Credit.
Pensioners in Scotland can now claim Pension Age Disability Payment - the benefit replacing Attendance Allowance north of the border. Full details can be found on MYGOV.SCOT here.
Pension Credit in a nutshell
Pension Credit currently supports 1.4 million people, including 125,000 living in Scotland. It tops up weekly income to a guaranteed minimum level of £227.10 a week for single pensioners or £346.60 for couples. It is worth on average £4,300 this year.
If you are a single person on the New State Pension with a total weekly income below £227.10, or part of a couple with a combined weekly income of less than £346.60, you may be eligible for Pension Credit.
An award of just £1 per week is enough to unlock access to other financial support, including the 2025/26 Winter Fuel Payment, or Pension Age Winter Heating Payment in Scotland.
Mixed aged older couples and Pension Credit
In May 2019, the law changed so a 'mixed age couple' - a couple where one partner is of State Pension age and the other is under it - are considered to be a 'working age' couple when checking entitlement to means-tested benefits.
This means they cannot claim Pension Credit or pension age Housing Benefit until they are both State Pension age. Before this DWP change, a mixed age couple could be eligible to claim the more generous State Pension age benefits when just one of them reached State Pension age.
Other help if you get Pension Credit
If you qualify for Pension Credit you can also get 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, Winter Fuel Payment or Pension Age Winter Heating Payment
A discount on the Royal Mail redirection service if you are moving house
Quickest way to check eligibility for Pension Credit
Older people, or friends and family, can quickly check their eligibility and get an estimate of what they may receive by using the online Pension Credit calculator on GOV.UK here.
Alternatively, pensioners can contact the Pension Credit helpline directly to make a claim on 0800 99 1234 - lines are open 8am to 6pm, Monday to Friday.
Expert help and advice is also available from:
Independent Age
Income Max
Citizens Advice
Age UK
More details about claiming Pension Credit can be fond on GOV.UK here.
Attendance Allowance in a nutshell
The information below is also relevant to Pension Age Disability Payment, the only difference is how to claim. All devolved benefits and payments are administered and delivered by Social Security Scotland - full details here.
Attendance Allowance currently helps nearly 1.7 million older people across Great Britain including 150,000 living in Scotland with the extra daily living costs of having a physical or mental health condition, disability or long-term illness. You do not need to have someone caring for you in order to make a claim.
People over State Pension age claiming Attendance Allowance receive either £73.90 (lower rate) or £110.40 (higher rate) each week. As the benefit is usually paid every four weeks, this amounts to either £295.60 or £441.60 every payment period - some £5,740.80 over the 2025/26 financial year.
Who can claim?
You should apply for Attendance Allowance if you have a disability or illness and need help or supervision throughout the day or at times during the night -even if you don't currently get that help.
This might include:
Help with your personal care - for example getting dressed, eating or drinking, getting in and out of bed, bathing or showering and going to the toilet
Help to stay safe
You should also apply if you have difficulties with personal tasks, for example if they take you a long time, you experience pain or you need physical help, like a chair to lean on. Attendance Allowance isn't just for people with a physical disability or illness.
You should also claim if you need help or supervision throughout the day or night and have:
a mental health condition
learning difficulties
a sensory condition - if you are deaf or visually impaired
Attendance Allowance isn't means-tested so it doesn't matter what other money you have coming in or how much you have in savings either - there's no limit. it is also tax-free and you will be exempt from the Benefit Cap so you won't have money taken away from any other benefits you're already claiming.
You can also claim it if you're still working and earning money.
How to make a claim
You will need to complete a long claim form when you apply for Attendance Allowance. It might seem daunting at first but help is available from Citizens Advice and Independent Age.
Full details of how to get the application form by post or over the phone can be found on the GOV.UK website here.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Times
5 hours ago
- Times
Banks criticised for failing SMEs with automated loan rejections
Banks are failing small firms and have created a 'void' in their services by ditching relationship managers and relying on automation to manage loan applications, according to the state body Credit Review. In a stinging report published last week, Credit Review also said that banks needed to reinvest in human expertise to offset the shrinking availability of credit in the market and compensate for tighter lending criteria in recent years. 'Bank balance sheets have shrunk and shrunk since the financial crisis but the question now is what's actually happening between banks and borrowers,' said Catherine Collins, head of the service and author of the report. 'For those it works for, automation is great. The problem we see is that for those with a more complicated business structure or model, they need some human interaction.' The report said that in many cases that came before Credit Review, which judges credit appeals brought by small businesses to loan rejections, 'considerable expertise' was required to find the appropriate solution for borrowers but banks were shifting that burden on to customers. 'There is a cost to the SME borrower of acquiring that expertise that has now been passed across by the bank who are no longer providing it to certain segments of the SME market (typically smaller borrowers),' the report said. It noted that credit advanced to non-property SMEs had fallen by 18 per cent from its pre-Covid level, due in part to the exits of Ulster Bank and KBC and the resulting lack of competition in the market. But the proportion of small businesses applying for finance each year had also fallen from more than one in three to just one in five. The lack of credit flow to indigenous small businesses has been flagged by Department of Finance officials as a potential problem for maintaining domestic demand in an economy facing grave risks from disruption in international trade and investment. Credit Review blamed the decline in the market on shortcomings in the credit application process, especially in terms of accessing expertise, how banks communicate, timeliness and flexibility. 'The responses that I see issued on bank credit decline letters remain generic, high level and unhelpful to many of the borrowers using our services,' Collins wrote. The average loan decision turnaround time of 24 days was also inhibiting small businesses from seeking bank finance, Collins said. The regulatory requirement for SME lenders is 15 days. The lack of standardisation between banks and the difficulty of switching from one to another was also a problem that limited competition and choice, she said. As a result, many businesses were now turning to alternative sources of credit from non-bank debt providers, such as invoice discounters or crowdfunders, which were in some cases subject to different regulatory requirements to banks. This segment of lenders has grown to make up more than a third of the market. Just under 60 per cent of the appeals brought to Credit Review since it was established by the Department of Finance in 2010 have been upheld. But Collins said not enough businesses were using its services, which can help firms to navigate the tricky process of accessing bank finance. 'SMEs are tricky, they require judgment calls,' she said. 'At the end of the day, you need to talk to someone. The pain is worth the gain.'
Wales Online
6 hours ago
- Wales Online
DWP giving away £500 to new parents if you match one of these 11 categories
DWP giving away £500 to new parents if you match one of these 11 categories The grant is for those who are expecting their first child or having twins or more, to help with financial costs The scheme provides a one-off payment to those expecting their first child or multiples (Image: Getty Images/iStockphoto ) New mums in Wales and England could be eligible to receive up to £500 from the Department for Work and Pensions (DWP) through the Sure Start Maternity Grant. This scheme provides a one-off payment to those expecting their first child or multiples, offering financial assistance without affecting any other benefits or tax credits claimed. The grant may also be available to parents who already have children under a certain age, although the eligibility criteria are more stringent than for first-time parents. Who can apply for a Maternity Grant? To qualify for the Sure Start Maternity Grant, you must not have any other children under the age of 16. Additionally, you must be claiming one of the following at the time you apply for the grant: Working Tax Credit that includes a disability or severe disability element income-related Employment and Support Allowance Child Tax Credit Pension Credit Universal Credit Income Support income-based Jobseeker's Allowance In some cases, you may still be eligible for the grant even if you have children under the age of 16, but you must meet one of the following criteria: the child you're caring for is someone else's (but not your partner's) and the child was over 12 months old when the arrangement started you're claiming for a family member who's under 16, or 16 to 19 and in certain types of education or training you're expecting a multiple birth (such as twins) you have refugee status, humanitarian protection or you've come to the UK from Afghanistan or Ukraine Article continues below How much you could get from a Maternity Grant. If you have one or more children under the age of 16 and none are the result of multiple births, you could receive £500 if you are having twins and £1,000 if you're having triplets. Furthermore, if you've previously had twins who are still under the age of 16 and are now expecting triplets, you could receive £500. However, if you've previously had both twins and triplets under the age of 16 and are now expecting twins again, you won't be eligible for any grant money. Article continues below This rule also applies if you've previously had triplets who are still under 16 years of age and you're expecting triplets again. All payments from the grant will be directly deposited into the account where you receive any benefits, pensions, or other allowances. How to apply. You must include proof of your pregnancy or childbirth with this application form. The completed form can then be posted to Freepost DWP SSMG - there's no need for a postcode or stamp to send this form.
The Herald Scotland
a day ago
- The Herald Scotland
How private firms are siphoning money from social security
Such firms offer services such as filling in claim forms and medical questionnaires, communicating with the Department for Work and Pensions and preparation for tribunals. Read More: Often targeted by social media advertising, people are paying up to £400 plus VAT per successful application for things like the Pension Age Disability Payment (PADP) and the Adult Disability Payment (ADP). Companies are deducting as much as 10% from ongoing monthly payments, potentially earning up to thousands of pounds over years. CAS offers free advice to those in need of social security, helping close to 192,000 people in 2023-24. David Hilferty, director of impact at Citizens Advice Scotland said: "This is a pernicious practice – profiteering from people who need support most. "It is the very worst kind of innovation and opportunism, clearly undermining the policy intent of these payments to provide vital financial support to those who need it most. "Expert, impartial, and confidential advice should be free of charge to everyone who needs it in Scotland. "
