State pensioners must obey a strict holiday rule or risk losing their Department for Work and Pensions (DWP) payments. Pension Credit is one of the leading benefits, worth £4,300, and handed to over one million pensioners. However, there is a four-week rule to be aware of if you are spending time abroad. If state pensioners are rewarding themselves with lengthy holidays after a lifetime of work, retirees need to obey certain restrictions.
Key Rule for Holidays Abroad
In its guidance for Pension Credit, the DWP states: "You can continue to get Pension Credit if you are away from Great Britain for 4 weeks or less - for example, on a holiday." Under DWP rules, you must be eligible for Pension Credit when you go away and remain eligible for it while you are away. You must also contact the Pension Service helpline to inform them of your absence.
Exceptions to the Four-Week Rule
You can receive Pension Credit for up to four additional weeks if you are abroad due to the death of a close relative. Furthermore, if a close relative dies while you are away and you cannot reasonably return to the UK, you may be eligible for Pension Credit for up to four more weeks under DWP rules.
If you are from the EU, Switzerland, Norway, Iceland, or Liechtenstein, you and your family usually need settled or pre-settled status under the EU Settlement Scheme to get Pension Credit. The deadline to apply to the scheme was 30 June 2021 for most people, but you might still be able to apply.
Calculating Your Pension Credit
When you apply for Pension Credit, your income is calculated. If you have a partner, your income is calculated together. Pension Credit tops up your weekly income to £238 if you are single and your joint weekly income to £363.25 if you have a partner. If your income is higher, you might still be eligible for Pension Credit if you have a disability, you care for someone, you have savings, or you have housing costs.
