If you’re a state pensioner in the UK and have more than £35,000 in savings, there’s some good news. You could be set to receive a bonus from the Department for Work and Pensions (DWP). This update is related to how your savings affect your pension credit and other benefits, and it’s something that many retirees might not know about.
Let’s break down what’s happening and how it might help you or someone in your family.
What’s the Update About?
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Many pensioners across the UK rely on the State Pension as their main income. But not everyone knows about Pension Credit, a benefit designed to top up the income of older people who have lower savings or smaller pensions.
Now, there’s an update that could reward those who have been careful with their money. If you’ve saved more than £35,000, you may still be eligible for some help — and in some cases, you could even get a DWP bonus depending on how your income and savings are assessed.
How Savings Impact Pension Credit
Usually, if you have savings over £10,000, the DWP reduces how much Pension Credit you get. For every £500 above £10,000, your income is considered to increase by £1 per week. This might lower your entitlement or remove it completely.
But now, under certain conditions, those with higher savings are not being penalised the same way. Especially if your income is still low despite having some savings, you might still qualify for a top-up or even receive a backdated payment if you’ve missed out earlier.
Who Could Get This Bonus?
This change mainly helps:
- People aged over 66, who are of state pension age
- Those who have over £35,000 in savings
- Pensioners who haven’t applied for Pension Credit yet because they thought they wouldn’t qualify
If you’ve been avoiding applying because you assumed your savings were too high — now is the time to check again. You could be entitled to hundreds of pounds in extra support.
Why This Matters Now
The cost of living crisis in the UK has made it harder for pensioners to manage basic expenses like heating, groceries, and medicines. The government is encouraging eligible pensioners to claim Pension Credit so they can access other benefits, such as:
- Cold Weather Payments
- Housing Benefit
- Council Tax Reduction
- Free TV licence (for over 75s)
How to Check If You’re Eligible
Checking eligibility is easy. You can:
- Visit the official GOV.UK website
- Call the Pension Credit claim line
- Use the online Pension Credit calculator
You’ll need details like your income, savings, and whether you’re living alone or with a partner.
Even if you’re not sure, it’s worth applying. Claims can be backdated up to 3 months, so you won’t lose out on money you could have received earlier.
Final Thoughts
Many pensioners don’t realise they might qualify for extra help — especially those who’ve worked hard, saved money, and assumed they had “too much” to claim benefits. But with changes in how savings are treated and the push from DWP to support older citizens, now’s the right time to check.
You’ve saved your money wisely. Make sure you’re not missing out on what you’re rightfully owed.