Little-known benefit opens door to 11 freebies and discounts worth up to £3.5k – but millions miss out

MILLIONS of households receiving a little-known benefit could be entitled to 11 freebies and discounts worth up to £3,500.

But more than 880,000 eligible, elderly Brits are missing out on Pension Credit and its associated perks, according to figures from the Department for Work and Pensions.

1

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.

The amount you’re eligible for is based on various different elements, but you could get up to £324.96.

Below is a list circumstances that impact how much you’re entitled to:

• 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

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 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.

But there are also a number of freebies and discounts available on top of the benefit too, including blue badge parking and council tax discounts.

Here’s a list of 11 of them worth up to £3,506.45.

1. Free prescriptions – worth £9.65

Once you reach 60, you can get free prescriptions from your local pharmacy – prescriptions usually cost £9.65 each in England.

So if you usually buy a single prescription each month you could save £115.80 over the year.

This benefit is automatic and there’s no need to apply.

If you’re 60 or over you’re also entitled to a free NHS sight test, so you should let your optician know when you reach 60 if you haven’t already. 

Eye tests can usually cost between £20 and £30.

2. Free dental treatment – worth up to £282.80

People who receive the pension guarantee credit can be eligible for free dental treatment too.

As with prescriptions, this is an automatic benefit and there’s no need to apply.

The NHS treats dental patients using bands.

The band is a category of treatment – in other words, what you’re getting done. It also helps to clearly label how much treatments cost.

There are three NHS charge bands, ranging from £23.80 to £282.80.

The cost depends on whether you’re just getting a check up, a small procedure like root canal, or something more major like dentures or bridges.

If you get savings credit on its own, you’re not automatically entitled to free NHS dental treatment, but you can apply for the NHS Low Income Scheme.

How much you can get depends on your income and circumstances, including your outgoings and any savings you have.

You can find out more about the NHS low income scheme here, including who qualifies and how to apply.

3. Cold weather payment – £25

When temperatures plummet, households across the country could be entitled to extra cash through the cold weather payment.

The cash from the government is worth £25 and people on Pension Credit are eligible.

It is dished out when temperatures are recorded as, or forecast to be, zero degrees or below, on average, for seven consecutive days.

You get £25 for each seven-day period where the weather is below zero Celsius on average during this time frame.

You don’t need to apply for the cold weather payment as it’s paid automatically to those who are eligible.

4. Free TV Licence – £159

One of the perks of being on Pension Credit is that you don’t have to pay for your TV licence.

You can apply for a free TV Licence if you, as the licence holder, are 75 years or older and you, or your partner living at the same address, get the benefit.

A TV licence ordinarily costs £159 a year, but it is set to rise to £169.50 in April. This is an increase of £10.50.

So this means you soon be set to save even more cash.

You will need to apply for a free TV licence online, or by calling 0300 790 6117 between 8.30am and 6.30pm between Monday and Friday.

The Sun recently spoke to 78-year-old grandmother Yvonne Bailey, who has saved £4,000 since claiming pension credit and said the free TV licence is one of the top perks.

5. Council Tax discount – up to £2,065

The average Band D council tax set by local authorities in England for 2023-24 will be £2,065, according to the government.

If you’re on Pension Credit you can apply for a discount or reduction of up to 100% on your council tax bill.

If you receive the guarantee credit part of Pension Credit you may even get your Council Tax paid in full.

If you don’t get guarantee credit but you have a low income and less than £16,000 in savings, you may still get some help.

As local councils run their own Council Tax Support schemes, how you make a claim might differ depending on where you live. 

But wherever you live, the first thing you’ll need to do when making a claim is to contact your local council.  

6. Cost of Living payment – £299

If you receive pension credit, you will be entitled to a £299 cost of living payment which will be made directly into bank accounts.

It will be paid automatically between February 6 and February 22.

You need to have been entitled to pension credit between November 13 and December 12 to be eligible for the free cash.

If you were later found to be entitled between the same dates you will also be eligible for the payment.

The payment reference for bank accounts will be the recipient’s National Insurance number followed by DWP COL or HMRC COLS.

For example, if your NI number is JT 83 42 97B your payment will show up as “JT 83 42 97B DWP COLP” or “JT 83 42 97B HMRC COLP” on your bank statement.

The £299 payment is the final of three payments that form the £900 support.

The first instalment worth £301 was paid out to over eight million households in April and May.

It follows the £650 cost of living payment made to over eight million people in 2022.

7. Benefit boost

If you’re on certain benefits, you might be eligible for top-ups, or what’s called a disability premium.

Roughly six million people across the UK receive disability benefits which are exempt from tax.

But you’ll need to be receiving PIP alongside Pension Credit to qualify.

You should get in touch with the DWP if you’re not sure what help you’re entitled to.

You may need to send them a copy of your PIP award letter.

When you reach state pension age (currently 66) you may also be entitled to attendance allowance if you have health conditions.

8. Social tariffs – £256

Social tariffs are broadband and mobile phone packages available to people on certain benefits, including Pension Credit.

They work in the same way as normal tariffs except at a lower price.

Applying for a social tariff changes depending on which provider you are choosing.

It is estimated that those on benefits can save up to £256 a year on their broadband bills thanks to these social tariffs.

Firms offer different packages as well, so it’s worth shopping around for the best deal.

You can use price comparison sites such as moneysupermarket.com or Uswitch, for example.

Ofcom, the regulator, has a list of companies offering social tariffs and their prices on its website too.

9. Discounted water bills – £160

The average household qualifying for the discounted water rates could slash their bills by £160 a year.

Every water company has a social tariff scheme which can reduce your bills if you’re on a local income, or receiving a benefit like Pension Credit.

But who’s eligible for help and the level of support varies depending on your water company.

Make sure you contact your water company to find out what you could be entitled to.

Customers of Thames Water, England’s largest water company, may be able to get a 50% discount on bills if their total household income is below £17,005, or below £21,749 in London boroughs.

10. Warm home discount – £150

Millions of households in England, Wales and Scotland can get £150 deducted off their energy bills through the warm home discount.

This winter the money will be taken off your bill between late October and March 2024.

You’ll need to receive one or more of the following benefits to qualify:

Eligible households in England and Wales don’t have to apply for the discount, although some in Scotland do.

Scottish residents should check with their energy supplier directly to see if they qualify for the discount.

11. Free insulation and boiler grants – £1,000s

If you claim pension credit, you may be able to get free cavity wall and loft insulation from your energy supplier.

And if your boiler is broken, you may be able to get a grant for a new one from an energy provider.

Most suppliers are part of what’s known as the Energy Company Obligation (ECO) Scheme.

It offers grants to improve the energy efficiency of your home. It was launched in April 2013.

The ECO grants are given out by energy suppliers to help you replace an old boiler, add cavity wall insulation or loft insulation.

Households can help covering some, or all of the cost.

You’ll be eligible for the ECO scheme if you qualify for the Warm Home Discount scheme or you receive one of a number of benefits including:

• Child Benefit
• Pension Guarantee Credit
• Income-related Employment and Support Allowance (ESA)
• Income-based Jobseeker’s Allowance (JSA)
• Income Support
• Tax Credits (Child Tax Credits and Working Tax Credits)
• Universal Credit
• Housing benefit
• Pension credit saving credit

If you think you’re eligible, you can contact your local council to find out if they’re taking part in the scheme.

Alternatively, you can contact your energy supplier directly.

You can find contact details of suppliers who are taking part in the scheme on the Ofgem website.

How do I apply for pension credit?

You can apply for pension credit up to four months before reaching state pension age.

Crucially, you can apply any time after you reach state pension age, but your application can only be backdated by three months.

This means you can get up to three months’ worth of the benefit in your first payment if you were eligible during that period.

But anything beyond that and you won’t get more than three months of backdated payments.

You’ll need some personal information to hand when you apply, including your National Insurance number, and details about your income, savings and investments.

When it comes to actually applying, you can do this online on the government’s website.

You can also apply by phone by calling 0800 991 234 or by post. The address to send your claim form to is:

The Pension Service 8
Post Handling Site B
Wolverhampton
WV99 1AN

Freebies you can get if you’re on state pension but not eligible for Pension Credit

1. Discounted rail fare – £142

Pensioners with a Senior Railcard can get discounted rail fares.

There is an annual cost of £30 for the card and gets you 1/3 off train travel.

People with a Senior Railcard save on average £142 a year, according to the government.

The Senior Railcard is available to travellers aged 60 or over.

You can apply for the card on the National Rail website.

2. Discounted days out and cinema tickets – £20

People aged over 60 can get discounted days out and cinema tickets.

If you’re an existing National Trust member aged 60 or over, and you’ve been a member for at least the last three years, you can ask for 25% off your subscription.

This means that you’ll pay £63 for individual senior membership instead of £84 and £104.40 for joint senior membership instead of £139.20.

Empire has special Senior screenings for over-60s every Wednesday morning and tickets cost £3.75.

Odeon also holds weekly Silver Cinema screenings for over-60s with ticket prices starting at £3.50.

Both cinemas also provide free refreshments too.

Plus, Vue cinemas senior screenings are discounted for over 60s and include a cup of tea and a biscuit.

While Showcase offers senior admission every Monday to any standard film starting before 12pm and it costs £5.

You can find your nearest branches using the locator tool on the website.

3. Free bus pass – £128

In England, you can get a bus pass for free travel when you reach the State Pension age.

Plus, if you live in London, you can travel free on buses, tubes and other transport when you’re 60, but only within London.

In Wales, you can get a bus pass when you reach 60.

You get an older person’s bus pass when you’re 60 if you live in Scotland or Northern Ireland.

You can apply for the pass via your local council’s website which will have more information.

Make sure to check the website or phone your local council if you have any questions.

How much you save will depend on how much you use the pass.

But the average person with a concessionary bus pass made 64 journeys in the year to March 2022.

That’s the equivalent to an annual saving of a £128, with the average bus ticket currently costing £2.

4. Football discounts – up to £295

Watching your favourite football team can be pretty costly, especially if they’re in the Premier League.

But many clubs in the UK offers discounts for people over the age of 65.

For example, Newcastle United offers over 65s a 25% discount on the standard price of a ticket.

Seasons tickets for Everton in the 2022/23 season were priced at £330 for fans who are 65 and over, whilst a full-priced adult season ticket ranges from £465 to £625.

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This post first appeared on thesun.co.uk