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FIVE-MINUTE GUIDE TO... PENSION CREDIT

- By Harvey Jones

LAST year's ill-fated move by chancellor Rachel Reeves to restrict the Winter Fuel Payment to the poorest pensioners had a positive knock-on effect by triggering a surge in Pension Credit applications.

That surge is now easing, but it has left more of the poorest pensioners in receipt of the income-tested benefit.

However, an estimated 700,000 eligible households still fail to claim, including homeowners who assume they won't get it. As the cost-of-living crisis drags on, checking entitlement has never been more important.

Launched in 2003, Pension Credit is a means-tested, top-up for older people receiving the state pension but living on a low income.

This financial year it guarantees a minimum of £227.10 a week, or £11,809 a year for a single pensioner.

Couples see their income lifted to £346.60 a week, or £18,023 a year.

Last July, Reeves announced that only pensioners on Pension Credit or certain other income-related benefits would receive the Winter Fuel Payment.