Martin Lewis, a renowned money-saving expert, issued an urgent plea to state pensioners born before 1958 to claim a £3,900 government cash instalment. According to Lewis, 850,000 state pensioners could be eligible for this payment, though they must actively claim it as it won’t be automatically distributed. Lewis’ team at Money Saving Expert highlighted that £1.7 billion is waiting to be claimed.
To be eligible, applicants must be single with a total weekly income under £218, although those earning up to £235 might still qualify. For couples, the eligibility threshold is a weekly total income under £333. Couples earning less than £350 per week also have a good chance of qualifying.
Applicants can claim via Gov.uk if they have already claimed their State Pension, or by calling the Pension Service on 0800 99 1234. Claiming can be backdated for up to three months, making it crucial to check eligibility as soon as possible. Fiona Peake, a finance expert at Ocean Finance, emphasized the importance of claiming Pension Credit during the ongoing cost-of-living crisis.
She mentioned that rising energy costs and persistent food inflation make this financial relief especially significant for older individuals. She encouraged everyone who might be eligible to take five minutes to check, even if they receive a small amount of Pension Credit. “Claiming Pension Credit can help protect you against rising costs,” Peake added.
She clarified common misconceptions, stating, “Many people assume that applying for Pension Credit is complicated or that they won’t qualify if they have savings or a small private pension. In reality, the process is straightforward, and the qualifying rules are more generous than many think. Checking eligibility can unlock other financial support worth thousands of pounds.”
Hundreds of thousands of pensioners are being urged to claim a benefit that could unlock access to as many as five other financial perks.
Latest data from the Department for Work and Pensions (DWP) estimates that as many as 700,000 eligible pensioners are missing out on this vital support. Pension Credit, worth an average of £4,200 a year, is designed to top up the income of low-income pensioners, helping them achieve a more comfortable standard of living. The benefit is available even to those who own their homes or have some savings, making it more accessible than some may assume.
According to research, many pensioners are unaware that claiming Pension Credit also provides access to additional financial benefits. More than a fifth (21%) of survey respondents said they were unaware they would be entitled to any other benefits if they qualified for Pension Credit. These include:
– A discount on the Royal Mail redirection service if you move house.
Lewis urges pensions claim for £3,900
– Help with rent costs through Housing Benefit. – Help with NHS dental treatment, glasses, and transport costs if you get certain types of Pension Credit.
– Help with Council Tax through the Council Tax Discount. – A free TV Licence if you’re aged 75 or older. As part of its Take The Credit campaign, DWP is partnering with social enterprise Pocket Power to offer pensioners a free 30-minute phone call to help them save on household bills, and to support with Pension Credit applications.
On average, Pocket Power says one call saves each person £250, which could provide critical support this winter. Sarah Pennells, consumer finance specialist at Royal London, said: “There is still a significant gap in awareness around Pension Credit and the other benefits that claiming it entitles people to. But our research also found that there is a sense of embarrassment associated with applying for benefits, when there should be absolutely no shame in accepting help.”
“Pensioners can still check if they qualify for Pension Credit and apply to receive a valuable financial top-up in the coming year.
The easiest way to check if you qualify for Pension Credit is to use one of the free online benefit calculators, and once you know that you can claim, you can apply via the website, post or phone.”
To claim Pension Credit, a person must live in England, Scotland or Wales and have reached the qualifying age (currently 66 and over). They or their partner must also be receiving housing benefits. If this applies, the person must then work out their total weekly income, including other pensions, and earnings from employment and self-employment.
Not all benefits are counted as income. Individuals are most likely to be eligible if their total weekly income is roughly under £220. Joint households may find themselves more likely to be eligible if their total weekly income is roughly under £332.
However, if their income is higher, they might still be eligible, so it’s worth checking the Government website just in case. Those who have £10,000 or less in savings and investments will see no impact on their Pension Credit. Those who have more than £10,000, every £500 over £10,000 counts as £1 income a week.
For example, if you have £11,000 in savings, this counts as £2 income a week. To apply for the benefit, people can reach the helpline by telephone on 0800 991 234 or by textphone on 0800 169 0133. They can also apply online.
Sarah Pennells emphasized, “Despite the deadline passing for applying for Pension Credit for this winter, pensioners can still apply to see if they qualify for valuable financial top-ups in the coming year.”
