People receiving State Pension who are on a low income will find it easier and quicker to apply for their free TV licence under new UK Government plans. The reforms laid in Parliament last month mean that over-75s on Pension Credit no longer have to fill out paperwork when applying for, or renewing their licence, which slashes the usual annual £159 cost to nil.
While eligible older people currently have to fill in forms to prove they receive the benefit, the legislative change would allow the BBC to verify this automatically with the Department for Work and Pensions (DWP) without the need for paperwork. The move will mean the 7,000 people who apply for a free TV licence each month will be able to do so more quickly online or over the phone.
The BBC last year limited the free TV licences to over-75s in receipt of Pension Credit, which is designed to help with daily living costs for people over State Pension age and on a low income.
Digital Secretary Nadine Dorries recently said: “The BBC’s disappointing decision to stop providing free TV licences for all over-75s has left low-income pensioners who remain eligible jumping through administrative hoops to avoid paying the charge.
“The changes mean those receiving pension credit will get the savings with minimum fuss, ensuring more people get the support they are entitled to as we tackle the cost of living and grow the economy.”
DWP Minister for Pensions Guy Opperman said: “We want everyone to claim the benefits to which they are entitled, including Pension Credit which acts as a gateway for other benefits such as the free TV licence.
“This change will help reduce the administrative burden on over-75s and put their minds at ease.”
The reforms would amend the Television Licences Act 2000, with the changes to the streamlined application process expected to come into force next year.
It comes as the UK Government is reinstating the Triple Lock on State Pensions, while opposing above-inflation pay rises for public sector workers on the grounds that they would be inflationary.
Retirees could see double-digit payments increases next year as the State Pension will be determined based on September’s Consumer Price Index (CPI) inflation, while workers face a real-terms pay cut.
DWP recently said that around 850,000 households are believed to be missing out on vital Pension Credit support, at a time when the cost of living crisis is hitting people on low or fixed incomes particularly hard.
More than 1.4 million people over State Pension age across the UK are currently receiving the benefit, including some 129,671 living in Scotland, and accessing additional financial help with Council Tax, Housing Benefit, hearing bills and a free TV Licence for the over 75s.
What is Pension Credit?
Pension Credit gives people 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 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
One of the quickest ways to find out if you are eligible, and how much extra you could potentially be paid every week, is to use the Pension Credit calculator on the GOV.UK website.
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, 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.
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