A new Department for Work and Pensions (DWP) program will combine two main payments, impacting millions of applicants.
It comes after Labour announced plans to streamline benefit payments for some by streamlining the complicated processes that determine a claimant’s eligibility for various benefits. As part of the new guidelines, applicants for Housing Benefit and Pension Credit are expected to benefit from a more streamlined assistance system.
The Tory administration originally announced the plan in 2011, but there were substantial delays. However, people above the age of 66 will now get a single benefit rather than many installments, with the possibility of obtaining additional cash.
The DWP inked a roughly £1 million agreement with computer giant IBM to assist on the digital parts of the transition. The four-month contract will include assistance from IBM’s online customer experience professionals in designing the new system.
The DWP has also said that it would “work with Local Authorities to bring together the administration of Pension Credit and Housing Benefit as soon as operationally possible.” While many people now get Universal Credit instead of Housing Benefit, retirees are still one of the few categories who may apply individually.
Most people now get assistance via the all-encompassing Universal Credit system. It is estimated that over 760,000 retirees who are entitled for Pension Credit are not now claiming it, losing out on an average of £3,900 each year.
Furthermore, Pension Credit may qualify a claimant for this year’s Winter Fuel Payment, which has had its eligibility standards drastically reduced, allowing only those seeking specified benefits to receive it. While work on the changeover of Pension Credit and Housing Benefit is likely to begin shortly, the new unified system will not be implemented until 2026.
Who is eligible for Pension Credit?
Pension Credit is available in two forms: Guarantee Credit and Savings Credit. To be eligible for Guarantee Pension Credit, you must be of State Pension age (now 66). Your monthly salary should be less than the UK government’s minimal living allowance.
The minimum is set at £218.15 for singles and £332.95 for couples. These amounts may be greater if you are handicapped, a caregiver, or have certain housing needs.
Savings Credit is only accessible under certain circumstances:
- you reached State Pension age before April 6, 2016, or you have a partner who reached State Pension age before this date and was already receiving it
- you have qualifying income of at least £189.80 a week for a single person and £301.22 a week for a couple
How much could you potentially receive?
Guarantee Credit supplemented your weekly income to a certain extent. You may be eligible for extra if you are handicapped, a caregiver, or have specific housing expenses.
Savings Credit may offer up to a certain amount. The precise amount you will get is determined on your income and savings. Any income from savings and capital in excess of £10,000 is included.
Also See: DWP wants to reform benefits to cut costs, not help disabled people into work, court hears
