State pensioners who have under £10,000 in savings or investments warned

Pension Credit eligibility has been clarified for state pensioners who are desperate for the £300 Winter Fuel Payment. Under the new Labour Party government, only Pension Credit claimants and others who fit stricter criteria will be handed the £300 Allowance this winter.

Department for Work and Pensions ( DWP ) officials have ramped up awareness of Pension Credit, which is worth £3,900 a year. But many might think they’re not eligible because they have a weekly income above £218.15 for single people or over £332.95 in a couple.

But the DWP says some forms of income aren’t counted for the means-tested benefit, The following forms of income, savings and investments are added together to calculate your weekly income:. state pension, workplace, private or other pensions, employment earnings, self-employment earnings, most social security benefits like Carer’s Allowance and Tax Credits, and savings or investments over £10,000.

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The government explains: "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."

If you have deferred your pension, whether this be state, personal or workplace, the amount you would have received if you hadn’t deferred it will still be counted towards your income. Additionally, for every £500 you have saved or invested over £10,000 is counted as £1 of income.

People can still be eligible for Pension Credit if they receive more than the weekly thresholds as the following benefits are not actually counted towards your income total:. 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.

Pension Credit has two parts – Guarantee Pension Credit and Savings Pension Credit. You may be able to get one or both parts depending on your circumstances. Guarantee Pension Credit tops up your weekly income if you have a low income.

You can claim Pension Credit whether or not you are still working. You do not need to have paid any national insurance contributions.