Martin Lewis has shared an urgent message to pensioners across the UK, warning them they could be missing out on £3,300 a year.
The financial expert has urged people to check if they qualify for Pension Credit amid the worsening cost of living crisis. The top-up benefit also gives access to a one-off £650 sum to help with energy bills.
Lewis stated that millions of people could be missing out on the money, with many unaware that they are eligible for it. He described it as a "national tragedy".
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The Money Saving Expert creator said: "It is a national tragedy that getting on for a million pensioners, many of whom have been paying into the system for years, are missing out on a critical boost to their income. It's called Pension Credit, and this year it also means you get an extra £650 to help with energy bills.
"So as we're slap-bang in the middle of a cost of living crisis, it's crucial we spread the word as quickly as possible, as this payment is worth on average £3,300 a year, and it may stave off physical and mental health risks in what I suspect will be a dangerously expensive coming winter."
As reported by Lancashire Live, here is a roundup of all of the key information you need to know about Pension Credit.
What is Pension Credit?
Pension Credit is a benefit that gives you additional money to help pay for living costs if you are over the State Pension age and on a low income. It can also help with housing costs, including ground rent and service charges.
It is a means-tested benefit that is made up of two components:
Guarantee credit: If you are single, this tops up your income to a minimum of £182.60 per week. If you are cohabiting or married, it will top your income up to at least £278.70 per week.
In some cases, you may receive more money. These include if you have a severe disability, you are a carer or are responsible for somebody under 20.
Savings credit: If you reached the State Pension age before April 2016, you could be eligible for a top-up if you have savings — even if you do not qualify for guarantee credit.
Lewis stated: "I'm going to explain how it works, but it is really complex, so if that scares you don't read the next paragraph, just call and check if you're due.
"Here goes... if some of your current income is from savings (it's counted as £1 a week income per £500 of savings above £10,000) and that takes you above £158 a week in income (£252 for a couple), then you get 60p extra paid per £1 of income up to a maximum of £14.50 a week. Simple, eh!"
Who can claim Pension Credit?
Those who are at least 66 years of age and have an estimated weekly income of less than £200 should check online if they qualify for Pension Credit at www.gov.uk/pensioncredit. You can also get in touch with the Pension Credit helpline on 0800 99 1234.
Lewis added: "The worst that can happen is they say no. So don't stall, just call (actually, try the website first if you're more comfortable with that, but I couldn't think of a rhyme for going online)."
Pension Credit claimants are entitled to other benefits
A major advantage of Pension Credit is that it is a 'gateway benefit', meaning those who qualify may also be eligible for a range of other benefits and perks. These include:
- One-off £650 lump sum to help with energy bill rises (£325 paid in July, £325 autumn)
- Free TV licence for over-75s – worth £159
- Council tax reduction – potentially worth £1,000s a year
- Help with heating and energy costs through Warm Home Discount – worth £100s
- Housing benefit for renters – potentially worth £1,000s a year
- Free dental and optical care
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