People entitled to Pension Credit will have the first £10,000 of their savings ignored from 2 November, up from £6,000, the Department for Work and Pensions announces today.
Almost half a million pensioners will be up to £8 a week better off following the changes which will mean about 90% of people with Pension Credit will have all of their savings ignored.
The increase in the capital threshold to £10,000 was also applied to Housing Benefit and Council Tax Benefit for pensioners.
Angela Eagle, minister of state for Pensions and the Ageing Society, says: "I want everybody to get all the help they are entitled to. These changes mean that more people who have done the prudent thing and saved for their future will be rewarded.
"For example, a pensioner with average rent and Council Tax liabilities, who receives the guarantee element of Pension Credit, could have an income equivalent to around £220 a week."
The DWP estimates 20,000 people would become newly eligible to Pension Credit as a result of the changes.
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