Pension Credit claimants have been reminded that changes to their personal, household and financial circumstances may need to be reported to the Department for Work and Pensions (DWP). Failing to provide updated information can result in payments being reduced or stopped.
Pension Credit provides extra financial support to people who have reached State Pension age and have a low income. Having savings, other income or owning a home does not automatically prevent someone from qualifying, but entitlement depends on their individual circumstances.
The DWP says claimants should report relevant changes as soon as possible. Some changes could reduce entitlement, while others may increase the amount of Pension Credit a person receives.
Personal
There are several personal changes that Pension Credit claimants may need to report to the DWP.
These include:
- Moving to a new address
- Starting or stopping living with a partner
- The death of a partner included on the claim
- Starting or stopping work
- Going into hospital or a care home
- Someone moving into or out of the household
- Changing your name
- Changing your bank account
- Changes to a Post Office card account
- Leaving England, Scotland or Wales for any period, including holidays
- Starting or stopping looking after a child or young person under 20
- Changes to immigration status if you are not a British citizen
These circumstances can affect a person’s Pension Credit assessment. For example, moving in with a partner could change household income, while moving home could affect housing costs.
The GOV.UK Pension Credit guidance provides information about eligibility, payments and changes in circumstances.
Care
Additional reporting requirements can apply when a claimant enters a care home.
If someone stays in a care home for more than four weeks, they may need to report changes to how their care fees are funded. This could include starting or stopping financial support from the NHS or a local council.
A claimant should also report if a temporary care-home stay becomes permanent or if they move to another care home.
Going into hospital is another circumstance that may need to be reported, particularly when it affects an extended care-home stay or the arrangements surrounding the claim.
Care arrangements can affect a claimant’s financial circumstances, which is why the DWP needs current information.
Income
Changes in income can affect Pension Credit entitlement and should be reported.
This includes changes involving occupational or personal pensions. Claimants should report if they start receiving a new pension or take a lump sum from a pension pot.
Other income can also be relevant, including income from foreign pensions and other sources.
A change in income does not necessarily mean that Pension Credit will fall. Depending on the circumstances, it could increase or decrease the amount payable. Reporting the change allows the DWP to reassess the claim using current information.
Savings
Pension Credit claimants should also tell the DWP about relevant changes to their savings, investments or property.
The financial assessment for Pension Credit takes account of a person’s circumstances, so changes in capital can affect entitlement.
This can include receiving a significant sum of money, changes to investments or changes involving property.
Claimants should not assume that a change is too small or unimportant to report if they are uncertain about the rules. The Pension Service can explain whether a particular change needs to be included.
The GOV.UK eligibility guidance explains how income, savings and other circumstances are considered.
Housing
Housing costs can also change during retirement.
Pension Credit claimants should report relevant changes to housing costs, including changes to ground rent or service charges.
The circumstances of other people living in the household can also matter. For example, a new benefit received by someone in the home or the stopping of an existing benefit may need to be reported.
Keeping this information updated can help the DWP calculate the correct amount of Pension Credit.
Payments
The government warns that failing to report a relevant change could lead to a Pension Credit claim being reduced or stopped.
Providing incorrect information can also have consequences. Depending on the circumstances, a claimant could face a penalty or legal proceedings.
This makes it important for claimants to check the reporting requirements whenever their circumstances change rather than waiting until their next routine contact with the DWP.
Contact
Pension Credit claimants can report changes by contacting the Pension Service on 0800 731 0469.
The same helpline can be used if someone is unsure whether a particular change needs to be reported. Asking for clarification can help prevent incorrect payments or problems with a claim.
The DWP’s official Pension Credit information also provides guidance on making a claim and contacting the Pension Service.
Pension Credit is assessed according to individual circumstances, so not every change will have the same effect on every claimant. A change in income, household arrangements, savings, care or housing costs could alter entitlement in different ways.
For pensioners receiving the benefit, the key point is to keep the DWP informed when circumstances change. Promptly providing accurate information can help ensure payments are calculated correctly and may also reveal that a claimant is entitled to additional support.
