Thousands of retirees only have until tomorrow (10 December) to apply for pension credit and receive a £300 cost of living payment.
An estimated 1.2 million retirees who receive pension credit are eligible for the £300 boost.
Anyone applying after 10 December will get their pension credit, if eligible, but will miss out on the cost of living payments. This is because any successful claims are backdated for three months, as long as the applicant was also eligible to receive it at the time.
Steve Webb, partner at LCP said: “Even if you only qualify for a pound or two of pension credit, it can be worth making a claim. Pension credit is available to anyone over pension age on a low income, and this includes people who own their own home, as the value of your home is ignored when your entitlement is worked out.
“There’s no harm making a call and checking if you are entitled, and it could be very much worth your while”.
What is pension credit?
Pension credit is a benefit provided by the Department for Work and Pensions (DWP) which tops up a person’s income.
It also acts as a gateway to other support such as help with heating bills, council tax and cost of living payments.
Pension credit is often underclaimed meaning that many people are missing out on vital support.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “Pension credit plays an important role in topping up the incomes of the poorest pensioners and yet it remains hugely underclaimed.
“Claiming today could make an enormous impact to many people’s lives as we head into the winter months so it’s important to put in a claim if you think you or a loved one may be eligible.”
Who is eligible?
To be eligible, you must reside in England, Scotland, or Wales and have reached State Pension age. The scheme is operated separately in Northern Ireland. You must also have a weekly income that falls below a certain level.
If you’re single, your weekly income will be topped up to £201.05. If you have a partner, your joint weekly income will be topped up to £306.85.
Even if your income exceeds these amounts, you might still be eligible for pension credit if you have a disability, care for someone, have savings, or incur housing costs.
Your income could include the state pension, other pensions, wages, and most social security benefits such as carer’s allowance.
However, many benefits are not counted as income, including child benefit, various disability benefits, and the winter fuel allowance.
What are the cost of living payments?
The cost of living payments are grants given by the Government to millions of low-income households across the UK to help them pay with higher bills.
It’s no longer possible for applicants to get the first £301 payment, but until 10 December, it’s still possible to get the next two payments worth £599.
People on pension credit are eligible for the grant. It is being paid to people who receive the following benefits:
- Universal credit
- Income-based jobseeker’s allowance
- Income-related employment and support allowance
- Income support
- Pension credit
- Working tax credit
- Child tax credit
How can you apply?
To apply for pension credit, you can do so on the Government website. You can start your application up to four months before you reach state pension age, which is currently 66 years old for both men and women.
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
• 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)
• Bank account details