Pensioners have been urged to claim five-top ups to their State Pension in order to address the income gap left by soaring inflation levels.
Their payments will increase by 3.1% from April but at that point inflation is expected to be 7% or even higher.
As a result, many claimants have said the rise in pensions fails to cover the soaring cost of living, leaving them with what is effectively a cut in their income.
READ MORE: Worst-hit Merseyside areas as DWP hits Brits with £61-a-month 'poverty tax'
Campaigners from Silver Voices petitioned for a £500 lump sum to fill the gap but the Government has rejected the suggestion, reports BirminghamLive.
Responding to a petition, the DWP said: "The Government has no plans to increase the State Pension by £500 a year as an emergency measure. We have never paid our pensioners more. This year, we will spend over £129 billion on the State Pension and benefits for pensioners in Great Britain.
"From April, the full yearly amount of the basic State Pension will be around £720 more in 2022/23 than if it had been up-rated by prices since 2010. That’s a rise of over £2,300 in cash terms. Over the last two years, we have delivered an increase of more than 5.6% in the basic and new State Pension."
The DWP says the triple lock system normally used to work out State Pension rises will be reinstated for the next financial year and has this year urged pensioners to take advantage of five possible income top-ups to help deal with the cost of living crisis.
1. Pension Credit
Around 1.4 million eligible pensioners across Great Britain already receive some £5 billion in Pension Credit, which tops up their retirement income. However, according to the latest data, 958,000 people are missing out on Pension Credit, with £1.8 billion unclaimed.
Based on those figures, the average person is losing out on £1,878 a year. But, in fact, Pension Credit can be much higher, with the average amount received at present being £3,000 a year.
Pension Credit is described as a gateway benefit because it allows access to other financial help such as support with housing costs, council tax, heating bills and NHS charges as well as a free TV licence for those over 75.
You can find more information on pension credit HERE
2. Winter Fuel Payment
The Winter Fuel Payment provides pensioners with support for their energy bills over winter and is worth £2 billion every year. The Department for Work and Pensions said 11.4 million people received the payment in the previous winter period.
It pays £200 for households with someone who has reached State Pension age and is under age 80; or £300 for households with someone aged 80 and over. The money is paid automatically to people who receive the State Pension.
For more information on the Winter Fuel Payment see HERE
3. Cold Weather Payments
Cold Weather Payments give further help to vulnerable people in receipt of certain income-related benefits, including Pension Credit, to meet additional heating costs during periods of unseasonably cold weather between November 1 and March 31. During the previous period it ran - November 2020 to March 31, 2021 - almost £100 million was paid out in total, the department said.
Every year £25 is available for every week of severe cold weather between those dates. Cold Weather Payments are triggered when the average temperature reaches, or is forecast to be, zero degrees celsius or below over seven consecutive days at the weather station linked to your area.
After each period of very cold weather in your area, you should get a payment within 14 working days. It’s paid into the same bank or building society account as your other Government payments.
People on Pension Credit are among those who are eligible for Cold Weather Payments, along with people on Income Support, income-based Jobseeker’s Allowance (JSA),Income-related Employment and Support Allowance (ESA) or Support for Mortgage Interest who are in receipt of a pensioner premium . Check if you can get a payment in your area and if you have not received it, tell the Pension Service or local jobcentre. Find out more here.
See more information on the Cold Weather Payment HERE
4. Warm Home Discount Scheme
The Warm Home Discount Scheme knocks £140 off your electricity bill if you are on a low income or in receipt of specific benefits, and is set to be increased to £150 from 2022. Elderly people on low incomes who receive the Guarantee Credit element of Pension Credit - known as the core group - automatically receive the discount.
Others in what's called the broader group have to apply to their energy supplier in order to access the money. The broader group typically means you will get this discount if you are:
- in receipt of the Savings Credit element of Pension Credit
- in receipt of one of the following means-tested eligible benefits: Universal Credit, Income Support, income-based Jobseeker's Allowance, or income-related Employment and Support Allowance.
- are a customer with a gross annual household income of less than £16,190 and the account holder is living with mental or physical disability or illness, or there is vulnerability within the home (children living in the house aged 5 or under) or of pensionable age.
- are a customer with a gross annual household income of less than £16,190 and spend 10 per cent or more of household income on energy bills to heat the property.
Anyone who believes they are eligible should apply as soon as they can, as the scheme is operated on a first-come, first-served basis. There is a fixed pot of money to be distributed and qualifying applicants will have their rebates paid by March 31, 2022.
Chancellor Rishi Sunak recently confirmed plans to expand eligibility for the Warm Home Discount by almost a third. Three million vulnerable households will now benefit from the scheme.
The Government said: "We have already consulted on expanding the Warm Homes Discount by almost a third from 2.2 million to 3 million vulnerable households and increasing the rebate value to £150 from £140 each year, increasing the cost from £350 million to £475 million.
"We also consulted on expanding the eligibility to include all means-tested benefit recipients, bringing in those in receipt of Working Tax Credits and Pension Credit Savings Credit, and making the issue of the rebate more automatic for those on working age benefits who are living in the least energy-efficient homes."
Find out more about the Warm Home Discount Scheme HERE
5. Household Support Fund
A £500 million Household Support Fund was introduced last November to assist vulnerable households across the country this winter. In England, the £421 million fund has provided targeted support through local authorities to help with the cost of food, utilities and wider essentials. The Devolved Authorities received the remaining £79 million through the Barnett Formula to set up their own schemes.
Birmingham City Council was awarded £12.791 million. As part of that, it has handed Birmingham Voluntary Service Council (BVSC) £4 million to provide grants to all age groups and households through existing welfare support channels. This will deliver financial payments in the region of £100 per household with a maximum £200 payment, reaching between 17,500 to 35,000 households across the city, the council said.
Adult social care in Birmingham received £850,000 which will include emergency fuel payments.
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