Martin Lewis is urging 800,000 people over State Pension age on a low income to check if they are due a massive income boost simply by claiming a UK Government gateway benefit. Pension Credit currently provides around 1.4 million people across Great Britain, including 127, 288 living in Scotland, with an average top-up of £3,500 each year.
In a special edition of The Martin Lewis Money Show Live dedicated to boosting State Pension payments through Pension Credit and plugging gaps in National Insurance contributions, the consumer champion said it was a “national tragedy” that some of the most vulnerable people in the country, who have paid into the tax system for years, are not getting the State Pension top-up hey are entitled to.
He encouraged people to check the Pension Credit calculator on GOV.UK here or to call the Pension Credit helpline directly on 0800 99 1234 to find out if they are eligible.
But he also warned people not to be put off if the cash value of the benefit is only a few pence as entitlement “opens up a massive door” to Council Tax reductions, help with housing and heating costs and the remaining £599 cost of living payments for those on means-tested benefits, including Pension Credit.
Martin told viewers: “If you’re getting your State Pension and it’s not the full State Pension, and you’re on a low income then please check whether you are one of 800,000 people in the UK missing out on Pension Credit.
“This is really a bit of a national tragedy because these are some of the poorest people in the country who have been paying into the system for years and they are not getting the top-up to their State Pension that they are entitled to.”
The founder of MoneySavingExpert.com also shared his “rough rule of thumb” on whether or not you - or someone you know- should check for Pension Credit.
He said: “My rough rule of thumb - if you’re a single pensioner with total income of under £220 a week or a couple, both of State Pension age, with a total income of under £320 a week then you should check.
“I’m not saying you will get it, I’m just saying it’s worth checking.”
Martin added: “Getting Pension Credit opens up a massive door of other entitlements to you so even if the Pension Credit isn’t worth much, you really want to get it.”
The Department for Work and Pensions (DWP) launched ‘Pension Credit Week of Action’ which aims to raise awareness of the benefit and encourage the thousands of people who may be missing out to check their eligibility and make a claim.
Pension Credit tops up a person's income to a minimum of £201.05 per week for single pensioners and to £306.85 for couples or more if a person has a disability or caring responsibilities.
Below is everything you need to know about the benefit to make a claim for yourself, a family member or friend, including how to use the Pension Credit calculator and other entitlement an award of just a few pence may provide access to.
Who should check for Pension Credit?
If you are over 65 and reached State Pension age before April 6, 2016, you could still qualify for Pension Credit if your weekly income is less than:
- £240.90 if you are single
- £351.45 if you are a couple
These figures are from DWP and higher than those given by Martin Lewis, possibly due to the annual uprating in April, which saw the Pension Credit threshold increase by 10.1 per cent.
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 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 news, join our Money Saving Scotland Facebook page here, follow us on Twitter @Record_Money, or subscribe to our newsletter which goes out Monday to Friday - sign up here.
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