THOUSANDS of pensioners are missing out on extra help that could boost their income as bills soar.
The cost of living is rocketing and retirees could be nearly £1,000 worse off in April despite an increase to state pension rates.
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The state pension will rise by 3.1% in April pushing the maximum new state pension amount from £179.60 a week to £185.15, an extra £289 a year.
And under the old pension system those on the full basic state pension will see their £137.60 a week rise to £141.85 – £211 a year more.
But inflation is at 5.5% and set to rise further and experts predict it could hit as high 8% this year.
It means prices are rising at a faster rate leaving hard-up Brits out of pocket.
The average energy bill is rising £693 with the price cap in April which is over three times the extra from the basic state pension, and more than twice the amount of the new state pension.
It leaves them over £400 short for covering energy bills alone, according to interactive investor.
Meanwhile food bills are set to rise by an average of £180 a year and petrol prices could hit £2.50 per litre, adding £309 to fuel bills for the average couple with a car filling up every two months.
Overall pensioners are likely to see their costs rise by £1,182 on average.
Becky O’Connor, head of pensions and savings at interactive investor, said millions are dependent on the state pension alone in retirement.
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She said: “Many are in poor health. They can’t go out and ‘side hustle’ their way out of the cost of living crisis. They are stuck.
“The Government suspended the triple lock for one year to account for the anomaly in earnings data brought about by the pandemic.
“However, the extent of the difficulty faced by pensioners dealing with high inflation since then now means that decision risks throwing millions of pensioners into poverty. Some could be forced to rely on debt.”
Pensioners are being urged to check the extra help they can get which could include extra benefits like pension credit.
The benefit can top up low incomes and unlock access to other perks like a free TV licence, but it’s thought thousands are missing out each year.
Millions of Brits are missing out on billions of pounds of benefits cash between them so it’s worth checking you’re getting all the cash you’re entitled to.
You can check by using an online benefits calculator, which are offered by charities such as Turn2Us and EntitledTo.
Pension Credit
Pension credit is a common benefit that those on low incomes on state pension are missing out on
Nearly one million retirees are missing out on £1.8billion between them – that’s nearly £2,000 each every year.
Typically the benefit for pensioners on low income is worth around £3,000 a year on average, and you can get extra help if you’re a carer, disabled, or responsible for a child.
Read our guide to understand how much you can get depending on your circumstances.
Pension credit is also really important because it gives people over state pension age access to a whole raft of other benefits on top.
Even if you get only pennies from the benefit itself it’s still worth claiming to get these extras, which include:
- Housing Benefit if you rent the property you live in
- Support if you own the property you live in
- Council Tax Reductions
- A free TV licence if you’re aged 75 or over
- Help with NHS prescriptions, dental treatment, glasses and free transport costs for hospital appointments
- Help with your heating costs including cold weather payments.
You can find out more about pension credit and apply online as long as you’ve claimed state pension and there are no children in the application.
Otherwise, you’ll have to use the Pension Credit claim line on 0800 99 1234 or apply by post by printing out and filling in the Pension Credit claim form.
Carer’s allowance
If you have caring responsibilities you could get carer’s allowance to help out, worth over £3,000 a year if you get the maximum.
You need to be caring for someone for at least 35 hours a week but it doesn’t need to be someone you’re related to.
Generally, your earnings need to be £128 or less a week after tax, National Insurance and expenses in order to qualify.
But if your earnings are sometimes more than £128 a week you might still be eligible if your average earnings are below the threshold.
There’s other eligibility criteria for you and the person you’re caring for and you can find out more in our guide, including how to apply.
Attendance allowance
This benefit helps with costs if you have a severe disability and need someone to help look after you.
It’s paid at two different rates and how much you’ll get depends on the level of care that you need.
To apply you need to be both over State Pension Age and either physically or mentally disabled.
You get £60 per week if you need frequent help or constant supervision during the day, or supervision at night.
You get a higher rate or £89.60 a week if you need help or supervision throughout both day and night, or if you’re terminally ill.
You need to apply by post and you can download an Attendance Allowance claim form here.
Council tax
If you receive the guarantee part of Pension Credit you might get all of your council tax bill paid for in full.
However, council tax support rules vary depending on when you live so you need to check the rules with your local council.
Even if you don’t get Pension Credit, you might be eligible for some support, particularly if you live alone, or if you’re disabled, or if you have caring responsibilities.
To find out what you might get, you need to enter your postcode on the government website.
Four in five households will get a £150 council tax rebate in April to help with rising bills – see if you’re eligible.
NHS costs
If you’re over 60 you will get free prescriptions and you’re also entitled to free sight tests – but you’ll need to let your optician know.
You can also get help with dental treatment, glasses or contact lenses costs, NHS wigs and transport to hospital if you’re on a low income.
To get additional help you need to receive one of:
- The Guarantee Credit part of Pension Credit
- Income Support
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Working Tax Credit or Child Tax Credit (in some circumstances)
- Universal Credit (if you meet certain criteria).
To get the help with NHS costs, you need to show your benefit award letter to health care staff when you book or attend an appointment.
If you don’t receive any of these benefits but are on a low income, you can also get help through the NHS low income support scheme.
To find out about the scheme and how to apply – read the NHS guide here.
Free bus pass and cheaper train travel
In England, you can apply for a free bus pass once you reach the state pension age (currently 66).
In London, you can get a free bus pass from 60, which can be used on transport within the Capital.
In Wales, Scotland and Northern Ireland you can also get a bus pass when you reach 60.
You apply via your local council – which can be done online.
If you travel by train a lot, you can apply for a Senior Railcard.
This annual savings card costs £30 a year and will save you a third on your train tickets. You can cat cut costs further by getting a three-year card for £70.
National Rail estimates that people save £90 per year on average.
National Express also offers a Senior Coach card for people who are 60 and over. It costs £12.50 and offers a third off your travel throughout the year.
Energy bill help
Millions of retirees can get extra cash to help with energy bills this winter worth up to £300.
Anyone getting the state pension should have got the winter fuel payment automatically.
It’s a tax-free payment that comes from the government each year and is worth between £100 and £300.
Anyone who is eligible but hasn’t got it automatically needs to apply by March 31, 2022.
You can make a claim by contacting the Winter Fuel Payment Centre either by post, phone or email.
The contact details will depend on where you live and a full list can be found on the gov.uk website.
Brits on low incomes can get £25 payment when temperatures fall and thousands of payments have already been made.
See if you’ve got one of the cold weather payments with the postcode checker.
Households on pension credit or low incomes may qualify for the warm home discount scheme worth £140 – though most schemes are now closed for this winter.
You could get help directly from your energy company, if they have a hardship fund. You’ll need to ask them directly.
There’s also fuel vouchers for those on prepayment metres.
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