DWP paying state pensioners who have savings £990 each - check if you can claim

The Department for Work and Pensions offers a benefit called 'Savings Credit' which is available exclusively for specific state pensioners with more money, worth £990.08. The DWP created this benefit to reward individuals who have set aside money for their retirement.

Pension Credit, a different benefit aimed at helping pensioners on lower incomes, is separate from the state pension and comprises two parts: "guarantee credit" and "savings credit". You may be eligible for either or both of these components.

Guarantee credit increases your weekly income to a minimum standard, while savings credit rewards you with extra money if you have some savings or an income higher than the basic state pension. The eligibility for savings credit is limited only to those who attained state pension age before 6 April 2016 and are recipients of the basic state pension.

Becky O'Connor, director of public affairs at PensionBee, praised the DWP's vital benefit, stating: "It rewards people who have some extra savings or income."

in her discussion with The Telegraph. She highlighted that "This may seem a bit counterintuitive – a benefit that pays more to people who already have more – but it's a way of incentivising and rewarding those who've made modest retirement savings.", reports Birmingham Live.

Jon Greer, head of retirement policy at Quilter, commented: "The idea was to ensure that those with a small amount of savings or a modest pension income – above the level of the basic state pension – were not in the same position as someone who had made no savings at all."

To be eligible for savings credit you must have reached state pension age before April 6, 2016, and have put some funds aside for your retirement, such as a workplace pension or a savings account. Even if one doesn't qualify for the guarantee credit portion of Pension Credit, they may still be entitled to receive savings credit.

Ms O'Connor explained: "This includes their basic state pension, any additional state pension, and other income – such as a private pension."

Currently, in 2024, an individual can get up to £17.01 per week, while a couple can receive up to £19.04 weekly through savings credit.

Mr. Greer further clarified: "It can be quite complex to work out, and the name is slightly misleading, as it's not the amount of savings you have, but the amount of income you could get from them."