Retirees missing out on £1.7bn – how to claim up to £3,300 a year and energy bill help

BILLIONS of pounds if free cash is going unclaimed among those in retirement – and pensioners are being urged to claim.

The help from pension credit could be worth as much as £3,300 a year for the most hard-up households.

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But even if you get just a few quid from the benefit, it unlocks access to even more help like a free TV Licence and energy bill help.

It comes as the cost of heating homes soars, with bills going up by an average of £700 from April 1 when the energy price cap increased.

The exact amount more you’ll pay will depend on your usage, but the extra support from pension credit could help you cover the extra cost.

Already 1.4million people get their state pension boosted by pension credit, but there are still plenty missing out.

According to the Department for Work and Pensions, there’s still £1.7billion a year going unclaimed.

Guy Opperman, minister for pensions, said: “We recognise the challenges some pensioners will be facing with the cost of living which is why promoting pension credit is a priority.

“That’s why we’re calling on everyone with retired family, friends and loved ones to check in with them and see if they can get this extra financial support.”

There were no extra measures for helping struggling pensioners announced in the Spring Statement last month, and the triple lock for calculating the annual rise in state pension was paused for this year.

Although state pension rates will rise next week, it means that inflation is higher and it could leave many pensioners feeling the pinch.

Here we explain what pension credit is, how to claim, and the extra help you could get on top.

What is pension credit and how much is it worth?

Pension Credit gives you extra money to help with your living costs if you’re over the State Pension age and on a low income.

It’s worth as much as £3,300 a year on average, and you can get extra help if you’re a carer, disabled, or responsible for a child.

You can get pension credit even if you have other income, savings or own your own home.

There are two parts to the benefit and pensioners can be eligible for one or both parts:

• Guarantee credit – tops up your weekly income to a guaranteed minimum level, up to £177.10 a week if you’re single, £270.30 if you have a partner
• Savings credit – provides extra money if you’ve saved money towards retirement, up to £14.04 a week if you’re single and £15.71 for couples

These pension credit rates will rise by 3.1% from April 11.

Whether you’re allowed the guarantee element of pension credit depends on your income, including your partner’s if you live with them.

You could get the savings credit part of pension credit if both of the following apply:

• you reached State Pension age before 6 April 2016
• you saved some money for retirement, for example a personal or workplace pension

The exact amount you can get depends on your circumstances so using a benefits calculator can help you work out how much you could get.

You can check what you might get by using an online benefits calculator, which are offered by charities such as Turn2Us and EntitledTo.

What other help can I get via pension credit and how do I claim?

Pension credit is also really important because it gives people over state pension age access to a whole raft of other benefits on top.

Even if you get only pennies from the benefit itself, it’s still worth claiming to get these extras, which include:

• Housing Benefit if you rent the property you live in
• Support if you own the property you live in
• Council Tax Reductions
• A free TV licence if you’re aged 75 or over
• Help with NHS prescriptions, dental treatment, glasses and free transport costs for hospital appointments
• Help with your heating costs including cold weather payments

You can find out more about pension credit and apply online as long as you’ve claimed state pension and there are no children in the application.

Otherwise, you’ll have to use the Pension Credit claim line on 0800 99 1234 or apply by post by printing out and filling in the Pension Credit claim form.

There’s other help too you could get if you’re on low income and claiming your state pension.

For instance NHS costs like prescriptions and free travel – check out our full guide.

Many pensioners, along with other households will be getting a £150 council tax rebate this month – see if you’re eligible.

Meanwhile you can ask for help from your local council through the Household Support Fund.

This post first appeared on thesun.co.uk