A MONEY expert has revealed how you can claim £3,500 free cash and also qualify for £600 worth of cost of living payments.
Around 850,000 Brits could be eligible for pension credit but are currently missing out, with £1.7 billion unclaimed.
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The benefit is designed to help people over state pension age (currently 66) and struggling to get by on a low income.
Pension credit is not only worth over £201 a week, it can also open the door to other benefits, plus £600 free cash, according to money expert Alice Guy.
The head of pensions and savings at Interactive Investor has urged Brits who could be missing out to boost their income by applying.
She said: “Pensioners earning under £220 a week or couples earning under £320 should check or call the pension credit helpline to see if they’re eligible.
“Pension credit works by topping up your income to £201 if you’re single and £306.85 if you have a partner, but you could get around £42 to £76 more each week if you have a disability, you care for someone or you’re responsible for a child.”
She also explained that you could be entitled to pension credit even if you get state pension, have other income, savings or own your own home.
Alice said it is a “tragedy” that pensioners are living in poverty unnecessarily.
“People on pension credit could also get help with housing and heating costs, a council tax discount and help with health costs such as hospital transport, dental costs and glasses,” she added.
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Here’s a full list of freebies available to pensioners, including those on pension credit.
There are also £599 additional cost of living payments still to come later this year and in 2024 which pension credit qualifies you for.
The second and third instalments, of £300 and £299 respectively, are due to be paid this autumn and in spring 2024.
According to Alice, pensioners shy away from claiming pension credit due to the admin hassle or perceived stigma in claiming benefits.
Others don’t apply simply because they don’t realise, they might qualify, she said.
Some older pensioners may benefit in particular from the cash because of when they retired.
Alice warned: “Older pensioners who retired before April 2016 may also find themselves on a low income because they were on a different pension system where the basic state pension still pays a maximum of £156.20 per week.”
You can claim the benefit online or by calling the pension credit claim line on 0800 99 1234.
Before you make a claim it’s important to have all your details on hand.
You’ll need your National Insurance number, bank account details and information about your income, savings and investments.
You can also check the government’s online pension credit calculator to see if you’re eligible
Below we explain who is eligible for pension credit, how much you’ll get, and how to apply.
Who is eligible for pension credit?
It is available for people who are over the state pension age, and who live in England, Scotland or Wales.
This is currently rising to 66 for both men and women.
It used to be the case that couples, where one person was over state pension age, could claim, but new rules now mean that both people in a couple must be over retirement age to apply.
This means if you’re single and move in with a partner who is younger than the state pension age, you will stop being eligible.
But if you’re already receiving pension credit under the old system it won’t stop unless your circumstances change.
To qualify, you’ll need to have a weekly income of less than £201.05 for single people or £306.85 for couples.
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
The calculation does not include:
- Attendance allowance
- Christmas bonus
- Disability living allowance
- Personal independence payment
- Housing benefit
- Council tax reduction
If your income is too high to get pension credit, you may still get some savings so it’s worth checking.
How much can you get in pension credit?
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.
You may also get additional pension credit if you are disabled, have caring responsibilities or have to pay certain housing costs such as mortgage interest payments.
For instance, you can get either £61.88 a week or £72.31 per week for each child or young person you’re responsible for.
If you are disabled or care for someone who is disabled, you may get more.
For example, if you have a severe disability you could get an extra £76.40 a week or if you care for another adult you could get an extra £42.75 a week.
How do I apply?
You can start your application up to four months before you reach state pension age.
Applications for pension credit can be made on the government website or by ringing the 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:
- 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)
If you claim after you reach pension age, you can backdate your claim for up to three months.
Meanwhile, the DWP will be writing to thousands of households this summer inviting them to claim pension credit so keep an eye out.
Plus, a woman who was living on just £320 a month told The Sun how she is now £10,000 better off thanks to the benefit.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]
