A 78-year-old grandmother has shared how she’s £4,000 better off a year after claiming a little-known benefit.
Pension Credit is available to those over State Pension age and on a low income.
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It tops up payments to a minimum of £201.05 per week for a single pensioner and £306.85 for couples.
The benefit opens up a host of other perks too, including cost of living payments, council tax discounts and a free TV licence.
But the latest Government statistics reveal almost a million households are missing out.
Yvonne Bailey, 78, from Witney, Oxfordshire, realised she was eligible for the benefit 13 years ago after an adviser at her local Citizens Advice Bureau told her she could claim.
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Per week, she now receives £210 from her State Pension, plus an extra £78 Pension Credit.
Her State Pension is boosted as she claims some of her late husband John’s, who died 26 years ago.
She also receives around £68 Disability Living Allowance a week as she suffers from Fibromyalgia and severe Osteoarthritis, which she uses to lease an electric car for food shopping, taking her weekly income up to £356.
The Pension Credit in particular, Yvonne said, had made a “huge difference” to her life since she started claiming over a decade ago.
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“At that time it made a huge difference to my life because it meant I could go out with close girlfriends and have a coffee, and go round a garden centre and just, enjoy life,” she said.
“It meant I could buy new clothes when I needed it and trousers and practical things like that.”
Her State Pension and Pension Credit combined helps her pay for energy bills, which have recently skyrocketed, and food.
She also uses some of the extra cash to cover the cost of broadband.
But one major perk of the benefit is that it has opened up Housing Benefit, a 100% council tax discount, and since she turned 75, a free TV licence, which otherwise would have cost her £159 a year.
Beyond the immediate cash saving, the free TV licence has helped Yvonne, a widower who lives alone, feel less isolated.
She explained: “It means a lot. Living alone I’ve got my dog Daisy for company and whether I’m watching TV or not, it’s on because the house doesn’t feel so lonely then.
“It’s like you’ve got people there chattering in the background so it keeps you connected and keeps your brain active.”
The extra money from Pension Credit has seen Yvonne become a benefit evangelist, telling anyone and everyone to claim where possible.
She added: “This is my way of giving back. I’ve told a lot of neighbours and family who are entitled to claim Pension Credit and I’m spreading the word.
“Come on people, get that money that’s owed to you.”
Who is eligible for Pension Credit?
Pension Credit is available to people over the State Pension age, currently 66, who live in England, Scotland or Wales.
To qualify, you need to have a weekly income of less than £201.05 if you are single and £306.85 if you are in a couple.
Your income is worked out taking into account various elements including:
- Your State Pension
- Any other pensions you have saved, for instance, workplace or private pension savings
- Most social security benefits, for example, carer’s allowance
- Any savings or investments worth over £10,000
- Earnings from a job
It’s worth noting that the calculation does not include:
- Attendance allowance
- Christmas bonus
- Disability living allowance
- Personal independence payment
- Housing benefit
- Council tax reduction
How much can you get?
There are two parts to the benefit and pensioners can be eligible for one or both parts – here are the current rates for the tax year:
- Guarantee credit – tops up your weekly income to a guaranteed minimum level. This is £201.05 a week if you’re single and £306.85 a week for married couples.
- Savings credit – provides extra money if you’ve saved money towards retirement. You can get an extra £15.94 a week for a single person or £17.84 a week for a married couple.
For example, Yvonne receives just the Guarantee credit element as she had no income or savings when she applied.
You can also get additional Pension Credit if you have a disability, caring responsibilities or have to pay certain housing costs such as mortgage interest payments.
As an example, you can get either £61.88 a week or £72.31 a week for each child you’re responsible for.
How do I apply and how will I be paid?
You can start your application up to four months before you reach State Pension age.
You can make an application on the Government website or by ringing the Pension Credit claim line on 0800 99 1234.
You can get a friend or family member to ring for you, but you’ll need to be with them when they do.
You’ll need the following information about you and your partner if you have one:
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- National Insurance number
- Information about any income, savings and investments you have
- Information about your income, savings and investments on the date you want to backdate your application to (usually 3 months ago or the date you reached State Pension age)
You can also get help with the application process through charities and non-profit organisations such as Independent Age and Age UK.
