Warning to state pensioners with less than £10,000 in savings or investments
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The Labour Party government has spelled out who's eligible for the crucial £300 Winter Fuel Payment, with the focus being on Pension Credit claimants and those meeting stricter eligibility requirements. The Department for Work and Pensions (DWP) is making efforts to raise awareness about Pension Credit, which translates to a hefty £3,900 annual benefit.
A common misconception amongst pensioners is that a weekly income above £218.15 for singles or £332.95 for couples automatically disqualifies them; however, the DWP underlines that not all income types are factored into the means-tested benefit equation.
Income components assessed include: state pension, workplace or other pensions, earnings from jobs or self-employment, most social security benefits such as Carer’s Allowance and Tax Credits, and savings or investments exceeding £10,000. The government ensures clarity by elaborating: "If you have £10,000 or less in savings and investments this will not affect your Pension Credit. If you have more than £10,000, every £500 over £10,000 counts as £1 income a week. For example, if you have £11,000 in savings, this counts as £2 income a week.".
Moreover, even if you've deferred your pension – state, personal, or workplace – the amount you'd get without deferral still goes towards your income count. And importantly, any sum above £10,000 in savings or investments increases your assumed weekly income by £1 for every additional £500.
People can still qualify for Pension Credit even if they receive more than the weekly thresholds, as certain benefits are not counted towards your income total. These include Adult Disability Payment, Attendance Allowance, Christmas Bonus, Child Benefit, Disability Living Allowance, Pension Age Disability Payment, Personal Independence Payment, social fund payments like Winter Fuel Allowance, Housing Benefit and Council Tax Reduction.
