HUNDREDS of thousands of pensioners on low incomes are not claiming a free TV licence.
The latest government data reveals an estimated £1.7 billion in Pension Credit is going unclaimed.
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The money is given to pension households on low incomes to help with living costs, but they can get extra perks such as a free TV licence or energy bill help.
Currently, over 1.4 million pensioners in Britain receive Pension Credit.
Below, we explain what pension credit is, who is eligible and how you can get a free TV licence.
What is pension credit?
Pension Credit is paid to those who have reached state pension age and are on a low income.
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The benefit is intended to top people up so they can afford everyday living costs.
In April, the benefit rose from £182.60 a week to £201.05. For couples it will go from £278.70 to £306.85.
You can get extra amounts to top up the benefit depending on your circumstances.
The “Savings Credit” part of Pension Credit has increased from £14.48 a week to £15.94.
For couples, it has gone up from £16.20 to £17.84.
Even a small award can unlock further support – such as help with housing costs, council tax and heating bills.
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 £182.60 for single people or £278.70 for couples.
Pension credit rose from £201.05 in April, and for couples, it’ll go to £306.85.
If your income is lower than this, you should be eligible for the benefit.
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, so it’s worth checking.
How can 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 three 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.
How do I use my pension credit to keep getting a free TV licence?
The government stopped funding free licences for over-75s in 2015 and it became the responsibility of the BBC.
But the BBC announced in 2020 it would drop the initiative to save cash.
It means you can now only get the TV licence for free if you’re on Pension Credit.
It usually costs £159 a year so you’re making a fair saving.
But here’s how to watch TV legally WITHOUT paying for a licence.
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