Martin Lewis is calling on the nation to work together to help around one million people aged over 66 to check if they qualify for a ‘gateway’ benefit that could be worth more than £3,500 each year on top of their State Pension and also provide them with the £301 cost of living payment - but they need to act fast.
He warned Good Morning Britain [GMB] viewers that Friday is a “really big, hard deadline” urging pensioners, friends and family members to check eligibility now for Pension Credit - or they could miss out on crucial financial support. This is because applications made by May 19, which later turn out to be successful, will also qualify for the £900 cost of living payment - including the £301 lump sum that has already been made to 8.3 million families across the country, including over one million pensioner households.
Martin also explained his income rule of thumb, which might not mean someone will get the benefit, but could give a good indication on whether or not they should make a claim.
He explained: “Pension Credit is a ‘top-up your income benefit’ for those on the State Pension. My rule of thumb to check is, if you’re a single pensioner with an income of under £220 a week or you’re a pensioner couple with an income of less than £320 per week, get onto the Pension Credit calculator or call them up [Pension Credit helpline, 0800 99 1234] to find out if you’re entitled.
“I’m not saying you are entitled, I’m saying that’s when it’s worth checking to see if you’re entitled.”
Martin continued: “If you claim by Friday, and you are eligible, and there are a million pensioners eligible who aren’t claiming, then you get the £301 cost of living payment on top of Pension Credit and it’s a ‘gateway’ benefit. It’s a really big, hard deadline. If you’re eligible for Pension Credit and you’re missing out, you need to check now - today, tomorrow or Friday at the latest - because if you are eligible then you get that extra £301.”
GMB co-presenter, Susanna Reid, asked him why one million people are not claiming Pension Credit.
Martin replied: “Ignorance. People don’t know about it, but to be fair the government are trying to push people to claim. Some people don’t claim because they think they’re only going to get 50 pence. Even if you only got 50 pence Pension Credit a year, you’re then eligible for the £900 cost of living payment, if you’re over 75 you’re eligible for a free TV licence, you might be eligible for Council Tax, Housing Benefit, help with your dental and optical costs.
“It is a gateway to so many more entitlements that you have to understand that even if Pension Credit itself is trivial, everything that it opens the door to, is massive.”
He urged viewers: “Let us together, as a nation, work to try and get those million pensioners on the lowest income who are missing out to claim what they’ve paid into the system for years that they are entitled to.”
The consumer champion also issued the warning in the latest issue of the MoneySavingExpert.com newsletter, you can read it here.
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 Great Britain, including more than 127,000 people in Scotland, 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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