Martin Lewis is urging older people on a low income to check if they should claim a “crucial” annual income top up from the Department for Work and Pensions (DWP), worth an average of £3,500. He called it a “tragedy” that up to one million people of State Pension age are missing out on financial support they are entitled to through Pension Credit.
His comments come as the DWP launches a ‘Week of Action’ to promote Pension Credit and drive take-up of the means-tested benefit. The founder of MoneySavingExpert.com also explained how an award opens the door to many other benefits including cost of living payments, Council Tax reductions and help with housing or heating bills - even if they are only awarded a few pence.
Martin urged single pensioners with an income under “roughly £220” or pensioner couples “earning under £320” each week, to check the Pension Credit calculator online here, or call the Pension Credit helpline on 0800 99 1234 to check if they are eligible.
Pension Credit tops up a person's income to a minimum of £201.05 per week for single pensioners and £306.85 for couples - or more if a person has a disability or caring responsibilities.
The latest figures from the DWP show there are more than 127,280 pensioners in Scotland receiving the benefit, with take-up across Great Britain at the highest level since 2010.
Martin said: “It’s a tragedy that up to a million low income pensioners who’ve paid into the system for years are missing out on what can be a crucial financial top up.
“Even those only due thruppence from it should still claim as Pension Credit is the key gateway benefit that opens the door to many other entitlements - including the remaining £600 cost of living support, Council Tax reductions, free TV licences for the over-75s, dental and optical support and more.
“Any single pensioner earning under roughly £220 a week, or pension couple earning under £320 should check online or call the Pension Credit helpline just in case you may be due.”
A special edition of the Martin Lewis Money Show Live will be covering State Pension, Pension Credit, energy fixes and more at 8pm on Tuesday, June 13 on ITV/STV.
Pension Credit Week of Action
Pension Credit Week of Action runs from June 12 until Friday, June 16 and will see DWP joining forces with charities, broadcasters and a whole range of partners to raise awareness of the benefit in a nationwide push to get more pensioners claiming.
Commenting on the initiative, Minister for Pensions Laura Trott MBE, said: “We recognise the challenges some pensioners will be facing with the cost of living which is why, alongside driving down inflation, promoting Pension Credit is a priority.
“During the Week of Action, we will be out and about spreading the word - and you can help too. Speak to your older loved ones about Pension Credit and get them to check if they could be eligible for this vital extra support, worth an average of £3,500 per year.”
The DWP will also be tackling some of the myths that may stop people applying, such as how having savings, a pension or owning a home are not necessarily barriers to receiving Pension Credit.
UK Government Minister for Scotland John Lamont said: “We want to make sure pensioners are getting every penny of the benefits they deserve but there are still many people eligible for Pension Credit who haven't claimed.
"If you think you may qualify, or have a family member you think does, please apply. It's more important now than ever as the UK Government strives to help those who most need assistance with the rising cost of living."
New ‘Invitation to Claim’ Pension Credit letters
The DWP has also announced a forthcoming ‘Invitation to Claim’ initiative later this summer that will see potentially eligible households who receive Housing Benefit across 10 local authorities across Great Britain - including West Lothian - sent letters encouraging them to apply for Pension Credit.
The local areas listed below have been selected by the DWP to ensure a representative sample of urban, rural, regional and national areas.
- West Lothian
- Eastbourne
- Teignbridge
- Pendle
- Charnwood
- Vale of White Horse
- Redcar and Cleveland
- Craven
- Harrow
- Powys
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 amounts are slightly higher than ones quoted by Martin Lewis possibly due to the Pension Credit threshold increase in April, which saw most DWP benefits and State Pension increased 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 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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