Martin Lewis has claimed millions of pensioners are missing out on a major income boost.
The Money Saving Expert founder made a bold move and teamed up with the government to help tackle what he called a "national tragedy". He provided three pension credit "need to knows" for those aged over 65 with an income that is less than £200 per week.
Writing in his Money Saving Expert weekly money tips newsletter, Martin said: "It's not often I agree to team up with the Government on a campaign, but I was happy to offer assistance for this one, as it's 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 major income boost."
READ MORE: Martin Lewis fan shares simple five-minute check to save hundreds on car insurance
He claimed pensioners could be due up to £3,300 extra cash per year. Here are his top tips on how to check what money you are entitled to if you are over 65.
Check if you are due money - don't stall just call
Martin advised that if you're of state pension age (66 or older) and have total weekly income under roughly £200, then you should get online or call the Pension Credit helpline to see if you're due any extra money. He said: "I'm not saying everyone in this position is due money, but many are, so if you're in this boat, it is absolutely worth five minutes to check. And don't worry, the worst that can happen is they say no. So don't stall, just call."
Pension Credit is an income 'top-up' payment
Martin explained that Pension Credit is a means-tested benefit. It is made up of two parts.
- Guarantee Credit: This tops your income up to at least £182.60/week for singles or £278.70/week for cohabiting or married couples of state pension age. You may get more if you've got extra 'responsibilities', such as a severe disability, are a carer, or look after an under 20-year-old. The average top-up is £65/week, so that's £3,300/year.
- Savings Credit: If you hit state pension age before April 2016 (so you're roughly aged 71+) you may be due a top-up if you have savings, even if you're not due Guarantee Credit - the aim was to stop those who'd put something aside for their future being disadvantaged. I'm going to explain how it works, but it is really complex, so most should just call to check.
Pension Credit will open up access to other perks
If you're entitled to the Guarantee Credit element of Pension Credit, this also entitles you to a host of other state protections. These are:
- £650 lump sum to help with energy bill rises (£325 paid in July, £325 autumn). The Chancellor announced this cash last month. And while for those on other benefits you needed to be claiming them at the time to be due the first payment, for Pension Credit, provided you claim by 24 Aug, it'll be due (as long as you were state pension age by May).
- F ree TV licence for over-75s (worth £159/year)
- Housing benefit worth £1,000s for some renters. Housing benefit is an extra sum - the amount depends on where you live and how many people you live with.
- Council tax reduction. This can be worth up to £1,000/year.
- Energy bill reductions. This includes £25/week cold weather payments and the £150 warm home discount .
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