Pensioners and their families have just a few days left to check if they are able to claim an extra benefit which will make them eligible to get the £324 second cost of living payment.
It is thought that about 800,000 households are not claiming pension credit, which is a benefit for retired people on low incomes. As well as topping up their state pensions every week, the benefit is a passport to a whole raft of other benefits, including council tax discounts, warm home discounts and free TV licences.
The second part of the £650 cost of living payment has already been paid to most claimants, and those who were in receipt of pension credit on or before 25 September will automatically get the £324 payment. However, the Department of Work and Pensions (DWP) is urging people not to be put off making a claim, as if successful, pension credit can be backdated three months, making the claimant still able to get the extra cost of living payment as long as the claim is submitted before Monday, December 19.
Read more: DWP pension credit backlog sees claimants waiting months for benefit money
However, it may take a while to process claims, as the Government admitted that campaigns to encourage pensioners to claim the benefit had led to a backlog at the DWP. A Freedom of Information request by stockbroking company AJ Bell last month revealed that almost 60,000 pensioners have been waiting months for the money.
A spokesman from the DWP said: "We want to ensure pensioners receive all the support to which they are entitled and the success of our recent Pension Credit campaign is helping drive the volume of pension credit claims being submitted to an all-time high. Additional resources are being deployed to ensure we deal with the increase as quickly as possible, while successful claims and arrears will be paid accordingly to ensure those who are entitled do not miss out.”
MPs and other groups are pressuring the Government to improve their strategy for boosting pension credit uptake by the end of the year, amid fears that hundreds of thousands of the poorest pensioner are missing out on the benefit each year. Pension credit works by topping up weekly incomes to a minimum of £182.60 for single people and £278.70 for couples. More than three million households are eligible, but it's estimated that over 800,000 don't claim – in many cases because they don't realise they could be entitled to it.
Age UK is encouraging all elderly people who are worried about paying their bills to check their eligibility and apply for pension credit and stressed that having savings, a private pension or owning a home are not necessarily barriers to receiving the payment- contrary to what many might think. And Money Saving Expert Martin Lewis said: "It takes minutes to check if you qualify, so don't stall, just call. The exact rules of who can get pension credit are complex, so we have a simple rule of thumb – if you're of state pension age (66 or older) and have total weekly income under roughly £200, then get online or call the pension credit helpline to see if you're due."
DWP newsletter Touchbase said: "The last date for those who can successfully backdate their claim is 19 December, though we urge people to get their applications in as soon as possible.. People do not have to do anything extra to backdate their claim. If they make their application online, they will automatically be asked about backdating, and if they make their application over the phone the adviser will talk them through this."
Pension credit has two parts. The main part is 'guarantee credit' and this is a low income top-up. The second part is 'savings credit', which is a bonus for low-income pensioners who have put aside money towards their pension income. You can qualify for one without the other.
- Guarantee credit: This is the main part of pension credit, topping up your weekly income to £182.60 if you're single, and £278.70 if you're in a couple for 2022/23.
- Savings credit: If you reached state pension age before April 2016 and you've made provision via savings, work or a private pension, this gives you up to £14.48 a week if you're single, and £16.20 if you're in a couple. To qualify you've got to earn above a threshold amount of £158.47 if you're single and £251.70 if you're in a couple. If you hit state pension age before April 2016 you may be due a top-up if you have savings, even if you're not due guarantee credit. It's complex to work out, so call to check on 0800 99 1234.
Even if you find out you're only entitled to a small amount of pension credit, it's still worth claiming as it means you can qualify for other benefits. These include:
Cash to help with energy bill rises: To qualify for the second cost of living payment you should make your claim before the 19 December 2022, and request on your application for it to be backdated.
Free TV licence for over-75s: Over-75s needed to start paying for their TV licences after August 2020, but those on pension credit can claim them for free.
Council tax reduction: If you get the guarantee credit part of pension credit, you're entitled to the maximum council tax deduction.
Warm home discount: The warm home discount of £150 is a credit on your energy bill, given to people on low incomes. If you get any amount of guarantee credit you are entitled to the rebate, but you need to be signed up with a supplier who is part of the scheme. Find out more here.
Housing benefit: If you rent your home and receive any amount of guarantee credit, you are eligible for the maximum housing benefit entitlement from your local authority.
Cold weather payments: This £25 benefit is awarded for each continuous seven-day period of very cold weather (0°C or below) between 1 November and 31 March. If you're eligible, the money will be paid automatically into the same bank or building society account as your pension credit payments.
Free home insulation and boiler grants: Pension credit claimants may be able to get free cavity wall and loft insulation from their energy provider. And if your boiler is broken, you may be able to get a grant for a new one from an energy provider .
Free dental treatment: If you get any amount of guarantee credit, you're entitled to free NHS dental care.
Voucher for glasses/contact lenses : If you get any amount of guarantee credit, you are entitled to a voucher for glasses/contact lenses.
To make a claim for pension credit, see here. You can also work out how much you might get by using this calculator.
Read more:
- Newcastle CAB fears people will die this winter as first cold snap hits city
- Warning that Universal Credit claimants face real-terms cut to benefit
- DWP errors: Over 200,000 people still owed over £1.2billion back-dated pension payments
- Benefits blow as thousands of PIP applications rejected by DWP
- Money changes due to hit your pocket before Christmas
