Martin Lewis told GMB viewers on Wednesday that it is “an absolute tragedy” that one million people of State Pension age across the UK, eligible for a benefit worth more than £3,500 each year are not claiming it. The financial guru urged people over 66 and friends or family members to check if they, or someone they know, is missing out and should make a claim for Pension Credit.
Martin also explained the urgent need to make a claim before May 19, as new applications for Pension Credit - that later turn out to be successful - can be backdated by up to three months, which means they would qualify for the £301 cost of living payment.
The founder of MoneySavingExpert.com urged single pensioners with a total weekly income of under £220 and couples with a total weekly income of less than £320 to call the Pension Credit helpline on 0800 99 1234 to see if they are eligible. The online Pension Credit calculator on GOV.UK here can also give an indication of whether someone should make a claim.
Martin told viewers: “There are one million State Pensioners in the UK eligible for Pension Credit who do not claim it and that is an absolute tragedy. They’ve paid into the system for all of their lives and then not getting this important top-up.”
He encouraged people over State Pension age to claim, even if they don’t get a huge financial boost as even just a few pennies would be enough to qualify for the £900 means-tested cost of living payments. He said: “Simply claiming Pension Credit and even if you’re only entitled to a small amount of it, you would get the £301.”
Martin warned that entitlement to Pension Credit is “really complicated” but it could boost weekly income to up to £201 for single pensioners, or £306 for couples.
He reiterated that there’s no guarantee that pensioners with an income under £220 or £320 will qualify for Pension Credit, but it is the point at which “you should check”.
Martin told co-presenter, Susanna Reid: “The reason this is so important is that the average payout is £3,500 a year, but even if you were only due 50 pence a year from Pension Credit - first of all you get the £900 cost of living payment on top and secondly, Pension Credit is a crucial gateway benefit. It’s a superpower.”
Below is everything you need to know about the benefit to make a claim for yourself, a family member or friend.
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 Department for Work and Pensions (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 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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