MARTIN Lewis has issued an urgent warning to pensioners to act now or miss out on £301 free cash.
The consumer champion has urged “just under a million” Brits to sign up for pension credit so that they can qualify for the government’s cost of living payment.
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Writing in this week’s MoneySavingExpert newsletter he warned that the deadline to backdate claims is fast approaching.
He said: “There is a deadline for the nearly one million pensioner households missing out on vital help they’re entitled to.
“You’ve only until May 19 – two weeks away – to sign up for pension credit that’ll trigger eligibility for the current £301 cost of living payment.”
Martin asked those eligible to “help spread the word” so that others don’t miss out.
It comes as over seven million households across the UK will have received a £301 cost of living payment by the end of today, the Department for Work and Pensions (DWP) said.
This is the first instalment of the £900 free cash being dished out, with two more to follow.
Pension credit is one of the qualifying benefits for the cash help, but Martin says just under one million pensioner households are missing out.
Low-income retirees can get more than £3,500 a year to support everyday costs through the benefit.
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Plus, those that discover their eligibility can also get up to three months’ worth of backdated payments.
So if you make a successful claim by May 19 and are able to backdate your payments by the full three months – you’ll be eligible for the cash.
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.
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 pension credit, 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 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:
- 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.
How will I be paid?
Your benefits are usually paid into an account, for instance, a bank account.
They’re usually paid every four weeks.
You’ll be asked for your bank, building society or credit union account details when you claim.
But if you have problems opening or managing an account, you might be able to claim a different way.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]
