Labour plans to combine pension credit and housing benefit

Pension credit and housing benefit will be combined as Labour plans to make it easier for millions of pensioners to claim both payments.

Department for Work and Pensions (DWP) minister Sir Stephen Timms has said that the joint payment will begin as soon as it is ready to operate.

This will likely be a welcome development for many who have struggled with the current system.

What is pension credit?

Pension credit is designed to support pensioners whose weekly income falls below a certain threshold:

• If you’re single, you could receive up to £218.15 a week.
• If you’re part of a couple, you might qualify for up to £332.95 a week.

This benefit serves as a lifeline for many, making sure that pensioners can maintain a basic standard of living.

If your income is slightly above these limits, you may still qualify based on various circumstances, including:

• disability
• caring for someone
• housing costs

Additionally, pension credit unlocks additional support, such as:

• housing benefit
• help with mortgages
• a free TV licence

But despite its importance, an estimated 880,000 eligible pensioners are currently missing out on pension credit.

What is housing benefit?

Housing benefit helps pensioners pay all or some of their rent if they have no or a low income, or if they’re claiming benefits:

• It’s available to pensioners with savings under £16,000.
• The average annual claim is around £4,338.

New claims for housing benefit can now only be made if you’re over the state pension age, as younger individuals now apply for universal credit.

You can also apply for it if you live in supported, sheltered or temporary housing.

Yet, around 300,000 pension-age households aren’t claiming the housing benefit they qualify for, highlighting another area for improvement.

Why merge pension credit and housing benefit?

With similar eligibility criteria for both benefits, it makes sense to combine them, as over £2bn worth of support has gone unclaimed.

The merger also aims to raise awareness of these benefits among pensioners as many people aren’t aware they can apply for both.

DWP said earlier this year that they’d check housing benefit claims to see if people also qualified for pension credit.

Check you’re getting everything you’re entitled to

Worried you might be missing out on pension credit or housing benefit?

We can check you’re claiming everything you’re entitled to – get in touch or try our free benefits calculator.