With news that Claims for Pension Credit have soared by almost 150% since the Government announced plans to means-test the winter fuel payment, the question of a pension savings cap has resurfaced.

Savings can change how much people receive in Pension Credit, but they can have a nest egg of up to £10,000 without any effect on how much they are entitled to.

This pension savings cap has not increased since 2009, despite inflation. Based on Consumer Price Index (CPI) inflation data from the Office for National Statistics a £10,000 pot in 2009 would be worth more than £15,500 today.

But, the good news is that the £10,000 is not cliff edge, just the threshold beyond which the amount of Pension Credit starts to be affected. So, after that £10,000, every £500 in the bank is counted as £1 in income a week when your pension credit is calculated.

If you only have small amounts over the £10,000, it would only make a few pounds difference.

For example,  if you have £11,000 in savings, this counts as £2 income a week, or for £15,000, that's £6 a week.

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If you're not sure, it's worth applying - many people have been put off because they have savings, and are losing out on money they are entitled to.

Thankfully, following the Winter Fuel Payment announcement and the news about Pension Credit, applications have increased, 

Around 150,000 applications for pension credit have been submitted in the 16 weeks since July 29.

There are some delays processing the applications, but the Prime Minister’s official spokesman said: “We’re working hard to ensure as many pensioners as possible take up the support they’re entitled to.”

The Government continues to urge pensioners to check if they are eligible for Pension Credit.

Those who apply before December 21 will receive backdated payments of both pension credit and the winter fuel allowance, and the Department for Work and Pensions has deployed 500 extra staff to handle claims for the benefit.

Pensions minister Emma Reynolds said: “We’re pleased to see more pensioners are now receiving Pension Credit and our staff are processing claims as quickly as possible.

“With December 21 approaching, my message is clear: check if you are eligible for pension credit and if you are then apply, as it unlocks a range of benefits including the winter fuel payment.”