Thousands of North East pensioners could have a better retirement thanks to a campaign the Government is running to encourage more retired people to sign up for pension credit.
A trial which will directly target pensioners who might qualify for pension credit will launch in the summer, and some homes in the Teesside area will be part of the pilot. Worth up to an additional £3,500 a year, the benefit tops up low retirement income and it thought that around one in three eligible pensioners miss out on payments as it is not given automatically.
The Department for Work and Pensions (DWP) has just run a week of action , with charities and broadcasters to get people to check their eligibility and apply for pension credit and 10 places have now been chosen to pilot the direct approach.
Read more: More energy bill help may be on the way for low-income families
As well as Redcar and its surroundings, the test areas, which have been chosen as a sample of urban and rural places, include Eastbourne and Teignbridge in the South West, Pendle in Lancashire, Charnwood in Leicestershire, The Vale of the White Horse in Oxfordshire, Craven in North Yorkshire and Harrow in Greater London. Pensioners living in Powys in Mid wales and West Lothian near Edinburgh will also be targeted in the trial.
Older people living in households receiving housing benefit across the 10 local authorities will be sent ‘invitation to claim’ letters about the benefit, which tops up the income of the poorest pensioners.
There are currently around there are currently 1.4million claimants – but it is thought that around one in three pensioners who qualify do not apply. Past campaigns have caused a backlog of pension credit applications, but if you submit a claim which is eventually successful the payments will be backdated despite any delay.
Pension credit works by topping up weekly income to a minimum of £201.05 for single people and £306.85 for couples and also opens to door to a lot of additional support, including cost of living cash payments, extra help with energy bills, council tax, housing costs, and free TV licences if you are over 75.
Pensioners and their families have been urged to check if they can claim an extra benefit, which could also make them eligible to claim £600 cost of living payments, which bare due in two further instalments later this year and early next.
Pensions Minister Laura Trott told This Is Money: ‘We recognise the challenges some pensioners will be facing with the cost of living which is why, alongside driving down inflation, promoting pension credit is a priority. Speak to your older loved ones about pension credit and get them to check if they could be eligible for this vital extra support.’
You do not need to get the state pension to be eligible to claim pension credit, and savings of up to £10,000 will be disregarded if your income is low and you meet other rules.
It is thought that about 800,000 households are not claiming pension credit and MPs have pressured the Government to improve their strategy for boosting uptake, amid fears that hundreds of thousands of the poorest pensioner are missing out on the benefit each year.
Charity Age UK stressed that having savings, a private pension or owning a home are not necessarily barriers to receiving the payment- contrary to what many might think. And Money Saving Expert Martin Lewis said: “It takes minutes to check if you qualify, so don’t stall, just call. The exact rules of who can get pension credit are complex, so we have a simple rule of thumb – if you’re of state pension age (66 or older) and have total weekly income under roughly £200, then get online or call the pension credit helpline to see if you’re due.”
Pension credit has two parts. The main part is ‘guarantee credit’ and this is a low income top-up. The second part is ‘savings credit’, which is a bonus for low-income pensioners who have put aside money towards their pension income. You can qualify for one without the other.
- Guarantee credit: This is the main part of pension credit, topping up your weekly income to £182.60 if you’re single, and £278.70 if you’re in a couple for 2022/23.
- Savings credit: If you reached state pension age before April 2016 and you’ve made provision via savings, work or a private pension, this gives you up to £14.48 a week if you’re single, and £16.20 if you’re in a couple. To qualify you’ve got to earn above a threshold amount of £158.47 if you’re single and £251.70 if you’re in a couple. If you hit state pension age before April 2016 you may be due a top-up if you have savings, even if you’re not due guarantee credit. It’s complex to work out, so call to check on 0800 99 1234.
Even if you find out you’re only entitled to a small amount of pension credit, it’s still worth claiming as it means you can qualify for other benefits. These include:
Cash to help with energy bill rises: To qualify for the second cost of living payment you should make your claim before the 19 December 2022, and request on your application for it to be backdated – however, the DWP recommend applying asap.
Free TV licence for over-75s: Over-75s needed to start paying for their TV licences after August 2020, but those on pension credit can claim them for free.
Council tax reduction: If you get the guarantee credit part of pension credit, you’re entitled to the maximum council tax deduction.
Warm home discount: The warm home discount of £150 is a credit on your energy bill, given to people on low incomes. If you get any amount of guarantee credit you are entitled to the rebate, but you need to be signed up with a supplier who is part of the scheme. Find out more here.
Housing benefit: If you rent your home and receive any amount of guarantee credit, you are eligible for the maximum housing benefit entitlement from your local authority.
Cold weather payments: This £25 benefit is awarded for each continuous seven-day period of very cold weather (0°C or below) between 1 November and 31 March. If you’re eligible, the money will be paid automatically into the same bank or building society account as your pension credit payments.
Free home insulation and boiler grants: Pension credit claimants may be able to get free cavity wall and loft insulation from their energy provider. And if your boiler is broken, you may be able to get a grant for a new one from an energy provider .
Free dental treatment: If you get any amount of guarantee credit, you’re entitled to free NHS dental care.
Voucher for glasses/contact lenses : If you get any amount of guarantee credit, you are entitled to a voucher for glasses/contact lenses.
To make a claim for pension credit, see here. You can also work out how much you might get by using this calculator.
