MARTIN Lewis has issued an urgent warning to people who might be eligible for £72 extra free cash.
The MoneySavingExpert.com (MSE) founder was interviewed on ITV’s This Morning today.
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He encouraged people to check if they’re eligible for pension credit, even if they’re unsure and told them to adopt the mantra of “call, don’t stall.”
It comes as around 1million eligible people are missing out on the benefit.
Speaking live on TV this morning, Martin said people should make use of the pension credit hotline which is there to help and inform you if you’re eligible or not.
While calling won’t guarantee you get the benefit, you might come away with more ways of getting some extra help.
But one viewer wrote in to say they phoned and were rejected and also told that what Martin previously said about who is eligible was wrong.
They were told they need to be in receipt of attendance allowance, though this isn’t the case – it might have been that other financial circumstances meant they could not get the top up.
Martin said: “Pension credit is a top up to your income if you’re a state pensioner on a low income.
“For most people it will top up your income to £203 a week.
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“But in some circumstances where they are complicated i.e. carers allowance or disability allowance, you can earn more than £203 a week as a single state pensioner and get pension credit.
“If you have total weekly income of under £220 it is worth checking whether you’re entitled to pension credit.”
But this doesn’t mean you’ll necessarily get it, Martin added, like with the person above.
While other factors are considered, the MSE founder said, don’t be put off by this and call the hotline now.
Martin said the hotline is meant to be there, and is meant to be helpful.
He said it’s a “friendly service to tell you whether you’re entitled”.
“Don’t be put off getting in touch.”
To call the pension credit hotline, diall 0800 99 1234.
It comes as around 850,000 eligible people have just three days left to claim pension credit and still qualify for the first instalment of the £900 cost of living payment.
Applicants have until May 19 to put in their claim for pension credit.
If it’s any time after, you’ll miss out on the £301 payment.
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.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]
