Unclaimed pension credit could help pensioners tackle cost of living crisis
Millions across the country are facing the devastating effects of the cost of living crisis, and the UK faces the worst drop in living standards since 1970s, yet 850,000 households are missing out on claiming £1.7 billion of pension credit.
Pension credit is available to people over State Pension age on low incomes. It’s designed to top up your weekly income to a minimum of £182.60 for a single person or £278.70 for a couple.
Could you be eligible?
You and your partner – if you live with one – must both be over state pension age. You don’t have to be married to your partner but must live as a couple.
As mentioned, pension credit tops up your income to £182.60 for a single person or £278.70 for a couple, so your weekly income must be below that. If your income is higher, you might still be eligible for Pension Credit if you have a disability or you care for someone.
Income includes the state pension, other pensions, earnings from any kind of employment and most social security benefits. Be aware that if you’re entitled to a personal or workplace pension and you have not claimed it yet, the amount you’d expect to get still counts as income. And if you’ve deferred your State Pension, the amount of State Pension you would get is also counted as income.
The impact of savings
You are allowed to have some savings and still claim. If you have savings over £10,000 then for every £500 over that, £1 is counted as income. So for example, if you have £10,500 in savings, as you’re over the savings limit by £500, your weekly income will be considered as being £1 above what you actually receive.
If you have £20,000 of savings, that’s £10,000 above the limit, which means £20 will be added to your weekly income when calculating your eligibility.
The ‘gateway benefit’
Pension credit is known as a ‘gateway benefit’, as claiming pension credit opens access to a raft of other benefits and is one way for poorer pensioners to cope with rapidly rising living costs. Claiming pension credit unlocks access to other valuable benefits such as the attendance allowance, disability living allowance, personal Independence payments and carers allowance. You may also get housing benefit, a council tax discount, a free TV licence if you’re over 75, help with NHS dental treatment, glasses and transport costs, and help with your heating costs through the warm home discount scheme.
You can check your eligibility for pension credit here https://www.gov.uk/pension-credit-calculator or call the Pension Service helpline on 0800 731 0469.