Pensions Minister Laura Trott MP has said that it is “vital” that anyone of State Pension age receiving less than £182.60 per week should check their eligibility for Pension Credit and submit a claim before December 18, 2022. Applications received by the Department for Work and Pensions (DWP) by that date, which later turn out to be successful, will also qualify for the second cost of living payment, worth £324.
Ms Trott told the House of Commons on Monday: “It is vital that any pensioners receiving less than £182.60 a week look into whether they are eligible for Pension Credit, and if they are, they should try to claim it before 18 December, because the cost of living payment of £324 can be backdated.”
Consumer champion Martin Lewis is also encouraging older people to check if they qualify for the annual income boost worth on average over £3,300, which not only provides extra financial support but can act as a gateway to other help such as help with housing costs and a Council Tax Reduction.
Age UK is urging all older people who are struggling on a low income and who are not already getting Pension Credit to put in a claim without delay to avoid missing out.
Despite considerable financial benefits, the charity said a third (34%) of pensioners eligible to claim Pension Credit are still missing out.
The latest DWP figures indicate £1.7 billion is being left unclaimed by around 770,000 older people across the UK who are missing out on this crucial income boost. The benefit helps top-up a person’s income to a minimum of £182.60 per week for single pensioners and £278.70 for couples.
Caroline Abrahams, charity director at Age UK, said: “Although it’s good news that the State Pension and benefits will rise in line with inflation from April, many older people are still extremely worried about staying warm and well over the coming months.
“However, there is a lot of extra support available to help those on the lowest incomes this winter and it’s not too late to claim it.”
She continued: “We know that around 770,000 pensioner households are still missing out on Pension Credit and it’s likely that every one of them is struggling to manage their escalating bills at the moment.
“We’re urging anyone who’s finding it hard to pay for the basics such as food and energy to get in touch for a benefits check - claims must be made by mid-December in order to meet the cut-off date for eligibility for the extra payment.”
The charity is urging any older person living on a low income or struggling with their bills to contact its free advice line on 0800 169 65 65. People can also visit the Age UK website here or contact their local Age UK centre.
People can also check their eligibility for Pension Credit directly using the online calculator or by calling the Pension Service on 0800 99 1234.
Below is everything you need to know about the benefit to make a claim for yourself, a family member or friend. We also have details on the handy online Pension Credit calculator which can quickly indicate if your claim may be successful and how much you might get.
What is Pension Credit?
Pension Credit currently gives 1.4 million people across the UK extra money to help with living costs if they are over State Pension age and on a low income.
Some older people think because they have savings or own their home they would not be eligible for any Pension Credit, but the DWP said hundreds of thousands could be missing out on the extra money and discounts it provides every month.
Other help if you get Pension Credit
If you qualify for Pension Credit you can also get other help, such as:
- Housing Benefit if you rent the property you live in
- Support for Mortgage Interest if you own the property you live in
- Council Tax discount
- Free TV licence if you are aged 75 or over
- Help with NHS dental treatment, glasses and transport costs for hospital appointments
- Help with your heating costs through the Warm Home Discount Scheme
- A discount on the Royal Mail redirection service if you are moving house
Mixed aged older couples and Pension Credit
In May 2019, the law changed so that a ‘mixed age couple’ - a couple where one partner is of State Pension age and the other is under it - are considered to be a ‘working age’ couple when checking entitlement to means-tested benefits.
This means they cannot claim Pension Credit or pension age Housing Benefit until they are both State Pension age.
Before this DWP change, a mixed age couple could be eligible to claim the more generous State Pension age benefits when just one of them reached State Pension age.
How to use the Pension Credit calculator
To use the calculator on GOV.UK, you will need details of:
earnings, benefits and pensions
savings and investments
You’ll need the same details for your partner if you have one.
You will be presented by a series of questions with multiple choice answer options.
This includes:
- Your date of birth
- Your residential status
- Where in the UK you live
- Whether you are registered blind
- Which benefits you currently receive
- How much you receive each week for any benefits you get
- Whether someone is paid Carer’s Allowance to look after you
- How much you get each week from pensions - State Pension, private and work pensions
- Any employment earnings
- Any savings, investments or bonds you have
Once you have answered these questions, a summary screen shows your responses, allowing you to go back and change any answers before submitting.
The Pension Credit calculator then displays how much benefit you could receive each week.
All you have to do then is follow the link to the application page to find out exactly what you will get from the DWP, including access to other financial support.
There’s also an option to print off the answers you give using the calculator tool to help you complete the application form quicker without having to look out the same details again.
Try the Pension Credit Calculator for yourself or family member to make sure you’re receiving all the financial support you are entitled to claim.
Who cannot use the Pension Credit calculator?
You cannot use the calculator if you or your partner:
are deferring your State Pension
own more than one property
are self employed
have housing costs (such as service charges or Crown Tenant rent) which are neither mortgage repayments nor rent covered by Housing Benefit
How to make a claim
You can start your application up to four months before you reach State Pension age.
You can claim any time after you reach State Pension age but your claim can only be backdated for three months.
This means you can get up to three months of Pension Credit in your first payment if you were eligible during that time.
You will need:
your National Insurance number
information about your income, savings and investments
your bank account details, if you’re applying by phone or by post
If you’re backdating your claim, you’ll need details of your income, savings and investments on the date you want your claim to start.
Apply online
You can use the online service if:
you have already claimed your State Pension
there are no children or young people included in your claim
To check your entitlement, phone the Pension Credit helpline on 0800 99 1234 or use the GOV.UK Pension Credit calculator here to find out how much you could get.
To keep up to date with the latest State Pension benefits, join in the conversation on our Money Saving Scotland Facebook page here, or subscribe to our newsletter which goes out three times each week - sign up here.
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