People who receive the State Pension from the Department for Work and Pensions (DWP) have been urged to apply for four top-up funds to help combat the soaring cost of living.
The UK Government department will raise pensions payments by 3.1% starting April 2022, but by then inflation is forecast to be at least 7%.
As reported by Birmingham Live, those who receive the State Pension have therefore claimed the amount received from the payment is insufficient to combat the rising cost of living.
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Activists from senior citizen membership organisation Silver Voices petitioned the UK Government for a £500 flat sum to help fill in the gap, but their suggestion was refused.
The DWP stated: "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 per cent 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 four possible income top-ups to help deal with the cost of living crisis.
1. Pension Credit
Approximately 1.4 million pensioners in the UK who are eligible already get around £5 billion in Pension Credit, which increases their retirement income.
However, new data has indicated that almost a further million people are currently missing out on the benefit, with around £1.8 billion not claimed.
These figures reveal that, on average, people are missing out on £1,878 per year — though may be significantly higher.
Pension Credit is called a gateway benefit as it allows claimants to gain 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.
2. Winter Fuel Payment
The Winter Fuel Payment allows pensioners to get financial help with their energy costs during winter, and amounts to a total if around £2 billion each year.
According to the DWP, more than 11.4 million people claimed the payment last winter.
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 funds are transferred automatically to those who claim the State Pension or any of the following benefits: Pension Credit, Income Support, income-based Jobseeker’s Allowance (JSA), or income-related Employment and Support Allowance (ESA).
People who claim benefits such as Housing Benefit, Council Tax Reduction, Child Benefit or Universal Credit, or who get a UK State Pension but live in Switzerland or an EEA country, have to manually put in a claim by contacting the Winter Fuel Payment Centre on 0800 731 0160.
3. Cold Weather Payment
Another fund which provides financial assistance to those who claim income-related benefits like Pension Credit is the Cold Weather Payment.
These can help offset rising heating bills during periods of particularly 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.
For every seven day period of weather where temperatures are recorded as, or forecast to be, zero degrees celsius, £25 will be given.
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.
You can check if you can get a payment in your area and if you have not received it, tell the Pension Service or local jobcentre.
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 UK 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."
