THOUSANDS of households are being urged to apply for a £3,500 cash boost that could entitle them to 100% off their Council Tax bill.
The Department for Work and Pensions (DWP) is urging people to check if they are eligible for Pension Credit.
The benefit is designed to help people over state pension age (currently 66) and struggling to get by on a low income.
The average Pension Credit award is worth over £3,500 a year and tops up a person’s income to a minimum of £201.05 per week for single pensioners and to £306.85 for couples.
Latest government figures suggest that around 850,000 eligible pensioners are missing out on the cash boost.
The DWP is currently writing to thousands of households this summer inviting them to claim.
Even a small award can unlock further support – such as help with housing costs, council tax and heating bills.
If you receive the Guarantee Credit element of Pension Credit, you could even get a 100% reduction in your Council Tax.
You can call the Pension Credit claim line on 0800 99 1234, or get in touch with your local council, to find out how much help you could be entitled to.
You can find your local council by using a handy tool on the government’s website.
If you don’t get Pension Credit then don’t worry, you can get extra help if you’re on a low income as well.
For example, retirees with less than £16,000 in savings could be eligible for a discount.
The reduction which single people can claim is also available to pensioners, so if you’re a retiree living alone, you can get 25% off.
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 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 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.
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.
Meanwhile, a woman was living on just £320 a month and in danger of having her home repossessed before she found she could claim £10,000 in Pension Credit.
Plus, here’s a full list of freebies available to pensioners, including those on pension credit.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
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