State pensioners who are on a ‘higher income’ can get an extra £3,900 a year on average, thanks to a little-known loophole.

While Pension Credit is a DWP benefit which is typically for pensioners who are on low incomes, there is a way to get the payment worth an average of £3,900 per pensioner, but which can net you more than £11,000 in a single year.

Normally, Pension Credit is only available to those with a weekly income of £227 or less, according to the Government’s own figures, or £346 a week if you’re in a couple.

From April, that’s going up too, as Pension Credit is also subject to the same boost as the state pension. Curiously, Pension Credit is not ‘triple locked’ like the state pension, but in fact is increased in line with wage growth.

This year, wage growth, at 4.8%, was the highest of the three key elements (which also include inflation and a flat 2.5%), used to calculate pension increases anyway, so by coincidence, it will rise by the same amount as the state pension.

Your eligibility for the benefit is calculated based on your income, which also takes into account not just any paid work but also savings interest, second property income (like rent) and stocks and shares interest.

But not all types of income are counted, which means that you could theoretically earn more than the £227/£346 weekly threshold and still be eligible to claim the money.

Those who have a disability, are a carer, or have housing costs may still be eligible to claim Pension Credit, even if they have income from these sources.

Sarah Pennells, Consumer Finance Specialist at Royal London, said: “If you care for someone, you may be entitled to £45.60 a week as an extra amount.

“It’s called the Carer Addition. If you have a disability, there’s the Severe Disability Addition that you may be entitled to, which is worth £81.50 a week. If you’re responsible for a child or young person under the age of 20, you could get an extra £66.29 a week.

“If you receive benefits as part of your income, some benefits, such as Attendance Allowance or Personal Independence Payment, aren’t taken into account when your income is being assessed.”