Eligibility for Pension Credit is linked to State Pension age (Image: Getty)
The Department for Work and Pensions (DWP) has confirmed a pension benefit age rise for older people in August.
The State Pension age in the UK is currently in the process of rising from 66 to 67, with the change being phased in gradually over a two-year period until 2028. The increase affects when people with a 66th birthday within this transitional period become eligible for the State Pension, forcing some to wait until they are almost 67 before they can get their first payment. But it’s not just the State Pension that the age increase affects, as it also means a longer wait for a key pension-age benefit for those on lower incomes: Pension Credit.
Pension Credit is worth £4,300 per year on average according to the DWP and can top up your weekly income to £238 if you’re single, or £363.25 if you have a partner. But the benefit also unlocks access to a wealth of other freebies and financial support, including a council tax discount, help with housing and NHS treatment costs, and free TV licences for those over 75, making it a valuable source of income for older people.
The DWP confirmed to the Express that eligibility for Pension Credit is linked to State Pension age, which “means it is rising in line with the increase in State Pension age and is currently 66 plus a specified number of months, depending on an individual’s birthday.”
Commenting on the pension benefit age rise, Clare Moffat, Pension and Tax Expert at Royal London, told the Express: “Raising the State Pension age doesn’t just affect when people can claim their State Pension, it also means some older people will have to wait longer before they can access valuable financial support.
“For those whose 66th birthday falls during the transition period, the impact could be significant. Pension Credit is worth thousands of pounds a year for eligible pensioners on low incomes, and it can also act as a gateway to additional help, such as support with housing costs, council tax and the Winter Fuel Payment, depending on individual circumstances.
“Having to wait several extra months, or potentially close to a year, before becoming eligible could leave some households facing a real financial squeeze at a stage of life when opportunities to increase their income may be limited.”
The amount of time pensioners will have to wait after their 66th birthday before they become eligible to claim Pension Credit depends on when their birthday falls, with some being only a month or two away from their 67th birthday by the time they can claim their first payment.
The DWP timetable for the State Pension age increase confirms the next phase is now underway this month, affecting older people born between August 6, 1960, and September 5, 1960.
Those with a 66th birthday that falls between August 6 and September 6 will now have to wait an extra five months until they reach State Pension age, and in turn, become eligible to claim Pension Credit.
For example, if you were born on August 6, 1960, then you will reach State Pension age on January 6, 2027, when you are exactly 66 years and five months old.
Listed is the full DWP timetable for the State Pension age rise from 66 to 67, which shows when people with birthdays between April 6, 1960, and March 5, 1961 can claim their State Pension, and in turn Pension Credit in England, Scotland and Wales:
May 6, 1960 – June 5, 1960: 66 years and 2 months
June 6, 1960 – July 5, 1960: 66 years and 3 months
July 6, 1960 – August 5, 1960: 66 years and 4 months
August 6, 1960 – September 5, 1960: 66 years and 5 months
September 6, 1960 – October 5, 1960: 66 years and 6 months
October 6, 1960 – November 5, 1960: 66 years and 7 months
November 6, 1960 – December 5, 1960: 66 years and 8 months
December 6, 1960 – January 5, 1961: 66 years and 9 months
January 6, 1961 – February 5, 1961: 66 years and 10 months
February 6, 1961 – March 5, 1961: 66 years and 11 months
March 6, 1961 – April 5, 1977: 67 years
The DWP said: “The Pensions Act 2014 brought the increase in the State Pension age from 66 to 67 forward by eight years. The State Pension age for men and women will now increase to 67 between 2026 and 2028.
“The Government also changed the way in which the increase in State Pension age is phased so that rather than reaching State Pension age on a specific date, people born between 6 April 1960 and 5 March 1961 will reach their State Pension age at 66 years and the specified number of months.
“For people born after 5 April 1969 but before 6 April 1977, under the Pensions Act 2007, State Pension age was already 67.”
