Introduction
The Department for Work and Pensions (DWP) has issued an urgent warning as hundreds of thousands of people are missing out on £3,500 of free cash each year. This extra money, called Pension Credit, is available to those over the State Pension age who have a low income. By claiming Pension Credit, individuals can also unlock other perks, such as a free TV licence for those aged 75 or older.
Who is eligible for Pension Credit?
Pension Credit is available to individuals over the State Pension age, currently 66, who reside in England, Scotland, or Wales. To qualify, your weekly income must be less than £201.05 if you are single and £306.85 if you are in a couple. Your income is calculated based on factors such as your State Pension, other pensions, social security benefits, savings or investments, and earnings from a job.
How much can you get?
Pension Credit consists of two parts: Guarantee credit and Savings credit. Guarantee credit ensures your weekly income is topped up to a guaranteed minimum level, which is £201.05 for single individuals and £306.85 for married couples. Savings credit provides extra money for those who have saved towards retirement, with an additional £15.94 per week for single individuals and £17.84 per week for married couples.
How to apply and payment methods
You can start your Pension Credit application up to four months before reaching State Pension age. Applications can be made online through the Government website or by calling the Pension Credit claim line. You can also seek assistance from charities and non-profit organizations such as Independent Age and Age UK. Payments are typically made directly into your bank account.
Other benefits of Pension Credit
Pension Credit is considered a "gateway" benefit as it opens up access to various discounts and freebies. If you claim Pension Credit, you may be eligible for help with Housing Benefit, council tax discounts, cost of living payments, and the Warm Home Discount scheme. Additionally, individuals aged 75 or over can obtain a free TV licence by contacting the TV Licensing helpline or applying online.
Remember to claim your Pension Credit to ensure you don't miss out on valuable financial support and additional perks.
