Martin Lewis is encouraging nearly one million people over State Pension age to check if they qualify for a ‘gateway’ benefit from the Department for Work and Pensions (DWP) which is worth around £3,300 on average each year.
The DWP estimates around 850,000 households across the UK are missing out on vital support through Pension Credit at a time when the cost of living crisis is hitting people on low or fixed incomes particularly hard.
The financial guru is keen for people to spread the word about the DWP’s second annual Pension Credit ‘day of action’ on June 15, which is part of an awareness-raising drive to increase take-up of the benefit.
The founder of MoneySavingExpert.com explained: “Today is the snappily named Pension Credit Day of Action. It's not often I agree to team up with the [UK] 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.”
The consumer champion even has a quick check everyone can do to see if they should contact the DWP and make a claim.
He said: “My simple rule of thumb is if you (or someone you know) are aged 66 or older, and have total income of under roughly £200 a week, get online or call the Pension Credit claim line to see if you’re due a payment that can be as much as £3,300 a year.
“I’m not saying everyone will get it, but many will, and it only takes a few minutes to find out. So don’t stall, just call.”
Martin added: “Not only is this serious money, it’s also often a gateway entitlement that means you’re due a range of other support, such as Council Tax reductions, the £650 extra energy funding help, Warm Home Discount, housing benefit, dental and optical treatments and, for the over-75s, a free TV licence.”
The latest figures from the DWP show that more than 1.4 million older people are receiving Pension Credit, including some 129,671 living in Scotland, however an estimated £1.7 billion is being left unclaimed.
The benefit is designed to help with daily living costs for people over State Pension age and on a low income.
It tops up a person’s income to a minimum of £182.60 per week for single pensioners and to £278.70 for couples.
It can be claimed by phone and online. An online Pension Credit calculator can help pensioners check if they are likely to be eligible and get an estimate of what they may receive - find out more about this here.
People can also find out more on the GOV.UK website, here, or call the Pension Credit claim line directly on 0800 99 1234 for help.
To help raise awareness, the DWP said it will be also providing leaflets for local communities, while businesses can also spread the word to their customers.
State Pension recipients will continue to receive reminders about Pension Credit in the post.
Minister for pensions Guy Opperman said: “We recognise the challenges some pensioners will be facing with the cost of living which is why promoting Pension Credit is a priority.
“We’re calling on everyone with retired family, friends and loved ones to check in with them and see if they can get this extra financial support, which could make a huge difference to people’s everyday lives.”
UK Government Minister for Scotland Iain Stewart said: "We want everyone who is eligible to claim this extra help. It could be worth more than £3,000 per year for some people - that's a vitally important boost for those most in need as we tackle the rising cost of living. If you're an elderly person who is not currently receiving Pension Credit, or you think you may know someone who qualifies, please get in touch."
Dame Clare Moriarty, chief executive of Citizens Advice, said: “Pension Credit can be a really important boost for older people who are struggling with a low income. Citizens Advice can help you to understand if you might be eligible and advise you on how to make a claim.”
Age UK are also offering support for people unsure about claiming the benefits.
Caroline Abrahams, charity director at Age UK, explained: “Any older person on a low or modest income who is struggling with their bills or wants to find out more about extra income that might be available, can also contact Age UK for support to check their full entitlements and see if they’re one of the many who are missing out.”
People can call Age UK’s Advice Line on freephone 0800 169 65 65, contact their local Age UK office or visit www.ageuk.org.uk.
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
How to use the Pension Credit calculator
To use the calculator on the GOV.UK website, 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.
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 pensions news and benefits, join our Money Saving Scotland Facebook group here, follow Record Money on Twitter here, or subscribe to our twice weekly newsletter here.
