THE Department for Work and Pensions has issued an urgent warning as thousands miss out on £3,500 free cash a year.
Pension Credit is extra money for those over the State Pension age and on a low income.
1
It tops up your income to a minimum of £201.35 a week if you are living alone and £306.85 if you have a partner.
It can also open up other perks such as a free TV licence if you’re 75 or older.
But hundreds of thousands who are eligible for the Government benefit aren’t claiming it – and it’s worth £3,500 a year on average.
Now, the Department for Work and Pensions (DWP), responsible for issuing Pension Credit has issued a fresh reminder for those who qualify to make a claim.
Read more in Benefits
In recent post on X, formerly Twitter, it said: “Pension Credit could provide extra money for those over 66, plus other support including cost of living payments.”
Who is eligible for Pension Credit?
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.
Your income is worked out taking into account various elements including:
Most read in Money
- 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
How much can you get?
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.
For example, Yvonne receives just the Guarantee credit element as she had no income or savings when she applied.
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.
How do I apply and how will I be paid?
You can start your application up to four months before you reach State Pension age.
You can make an application 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)
You can also get help with the application process through charities and non-profit organisations such as Independent Age and Age UK.
What else can you get on Pension Credit?
Pension Credit is known as a “gateway” benefit as it opens up a host of other discounts and freebies.
If you claim it, you might be able to get help with Housing Benefit, if you are in rented accommodation, and a council tax discount.
It also makes you eligible for cost of living payments and the Warm Home Discount scheme.
READ MORE SUN STORIES
If you’re 75 or over, it can open up a free TV licence too. You can claim your free one by calling 0300 790 6117.
You can also apply online via the TV Licensing website.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories.
This post first appeared on thesun.co.uk
