Older people could be missing out on an extra financial support without realising.
Earlier this month, the State Pension increased by 10.1% but over one million pensioners still have an income of less than £100 a week.
Figures from the Department for Work and Pensions show that 12.6m people are receiving State Pension payments, including those on the Basic State Pension, which is now worth up to £156.20 per week and those on the New State Pension, which is worth up to £203.85 per week, the Daily Record reports.
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But some people could be missing out on the additional money. Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, says many may not be aware of the Pension Credit.
She said: "The new State Pension has done much to boost the financial resilience of women in retirement and close the gap with men. This is great news but the comparison between what women receive on the new and basic rate pension systems is stark, on average more than £18 per week.
"We also forget that many people do not receive anywhere near the full amount of State Pension and there are currently 1.8m people receiving less than £100 per week. Again, the vast majority of these are women who have accrued large gaps in their National Insurance contribution history due to time taken away from the workforce to care for family.
"Many of these people may well have other sources of income to see them through retirement but for those who don’t, life can be a real financial struggle."
The ECHO previously reported The Department for Work and Pensions took to Twitter to urge people to check their entitlement for Pension Credit. It added that those who are over State Pension age and on a low income could be missing out.
Pension Credit is a tax-free payment for those who have reached State Pension age and live in the UK. The payment tops up weekly income to a guaranteed minimum level.
If you are over 65 and reached their State Pension age before April 6, 2016, you could still qualify for Pension Credit if your weekly income is less than £218.80 if they are single and £319.20 if they are a couple.
Pension Credit
According to the Daily Record, some older people think because they have savings or own their home they would not be eligible for any Pension Credit, but the DWP said hundreds of thousands could be missing out on the extra money and discounts it provides every month.
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
DWP has previously said there are common misconceptions that may be putting people off applying for Pension Credit. Gov.uk clarifies that people of State Pension age may be entitled to Pension Credit even though they may have modest savings, or a retirement income or own their own home.
It adds: "An award of Pension Credit can provide access to a range of other benefits such as help with housing costs, council tax, heating bills and for those aged 75 or over, a free TV licence".
To find out more about Pension Credit eligibility, or to apply, click here or call 0800 991 234.
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