UK pensioners told to check support worth £4,500 a year as new campaign launches

Hundreds of thousands of UK pensioners are about to find a leaflet on the doormat telling them they could be owed thousands, with many assuming their home or savings rule them out. For Brits in Spain with elderly parents back home, it’s worth checking on their behalf.

Owning a home doesn’t rule anyone out

The Department for Work and Pensions (DWP) launched a fresh push on Tuesday October 13 to get more older people claiming Pension Credit, a top-up for pensioners on low incomes that’s worth more than £4,500 (around €5,300) a year on average.

Around 660,000 leaflets are now landing on doormats in seven areas with large numbers of low-income pensioners: Glasgow, Powys, Stockton-on-Tees, inland Cornwall, Birmingham, East Suffolk and Manchester, with adverts also running on TV, radio, social media and even ITV’s The Chase.

The campaign goes straight after the two beliefs that stop people applying. GOV.UK states plainly that pensioners can get Pension Credit even if they have other income, savings or own their own home, which cuts right through the all-too-common thought of ‘we own the house, so it won’t be for us’.

How much a parent can have before it counts

Pension Credit tops up weekly income to £238 (€282) for a single person and £363.25 (€430) for a couple, and it’s open to anyone over State Pension age living in England, Scotland or Wales. Northern Ireland has its own rules.

Savings of £10,000 (€11,830) or less don’t affect a claim at all. Above that, every £500 is treated as £1 of weekly income, so a decent pot of savings trims the amount rather than simply cancelling it. Even those whose income sits slightly above those levels may still qualify if they’re disabled, care for someone or have housing costs.

The extra help that comes with it is often worth more than the payment

That’s where the real value lies, as getting even a small amount of Pension Credit opens the door to a string of other support. That includes a free TV licence for those aged 75 or over, a Council Tax Reduction, Cold Weather Payments and help with mortgage interest for homeowners.

Those on Guarantee Credit (the main part that tops up weekly income) can also get help with NHS dental treatment, glasses and travel costs.

About 1.4 million pensioner households already get it. However, older people’s charity Independent Age estimates that more than a million eligible people didn’t receive it in 2023/24, leaving £2.5 billion (€2.96 billion) unclaimed. Minister for Pensions Torsten Bell said: “Far too many pensioners are missing out on support they’re entitled to.”

Last year’s campaign, the biggest so far, brought in 33,500 extra applications.

Why Brits retired in Spain can’t claim it

Now, for readers retired on the Costas themselves, the news isn’t quite so good. Pension Credit is only for people living in Great Britain, so it can’t be applied for from abroad and it can’t be kept by anyone who moves away permanently.

Pensioners who already get it can only spend up to four weeks outside Great Britain, on holiday for example, and they must tell the Pension Service before they go. There are longer exceptions for the death of a close relative or for medical treatment, but a parent thinking of spending the whole winter with family in Spain would need to check first.

How family abroad can help a parent claim

The DWP’s new leaflet explains how to help a family member make a claim, and much of that can be done from Spain with a bit of preparation. The Pension Credit calculator gives an estimate in a few minutes using details of income, savings and housing costs. Claims can be made online by anyone who’s already applied for their State Pension, or by phone on 0800 99 1234, Monday to Friday from 8am to 6pm, and a friend or relative can make the call for someone who can’t use the phone.

It’s worth checking sooner rather than later, as claims can only be backdated by three months and any eligible months before that are lost for good.