There are around 1.4 million pensioners receiving Pension Credit, with an estimated 880,000 households eligible for support but yet to claim.
The government are urging people to check if they are eligible for financial support (Image: Getty Images)
Pensioners have been urged to check their eligibility for Pension Credit to secure this year’s Winter Fuel Payment. The Winter Fuel Payment will be means-tested, can be worth up to £300 and is aimed at those most in need.
In England and Wales, around 1.3 million households will receive the Winter Fuel Payments. The government is determined to ensure all people eligible for Pension Credit continue to get support.
The Deputy Prime Minister and Work and Pensions Secretary are writing to Local Authorities and will join forces with them, older peoples’ charities, and other groups this September for its annual Pension Credit Week of Action.
Getty Images (Image: In the UK, around 1.3 million households receive Winter Fuel Payments.)
To identify households not claiming this benefit, the government are hoping raising awareness will help people recognise they are eligible and come forward. Applications need to be made by December 21 which is the deadline for making a backdated claim for Pension Credit to receive the payment.
In the UK, there are around 1.4 million pensioners receiving Pension Credit, with an estimated 880,000 households eligible for support but yet to claim.
To apply, you must live in England, Scotland or Wales and have reached State Pension age to qualify for Pension Credit.
When you apply for Pension Credit your income is calculated. If you have a partner, your income is calculated together.
Pension credit will top up your weekly income to £218.15 if you’re single or your joint weekly income to £332.95 if you have a partner.
If your income is higher, you might still be eligible for Pension Credit if you have a disability, you care for someone, you have savings or you have housing costs.
During the Week of Action, set to commence in September, the DWP and its partners will be tackling some of the myths that may stop people applying, such as how having savings, a pension or owning a home are not necessarily barriers to receiving Pension Credit.
The common pension mistake that could cost up to £1.2bn and force you to work years longer
The worrying issue could cost pensioners “billions of pounds more” when the pension dashboards are introduced.
The common pension mistake that could cost up to £1.2bn and force you to work years longer (Image: Getty)
A common pension mistake could force savers to work years longer, as some unknowingly move their funds from low-cost workplace pensions to more expensive ones, a top provider has warned.
The People’s Partnership, which operates the People’s Pension, has highlighted the need for better information to help individuals compare their pension options before making transfers.
Their analysis of 2023 data revealed that up to £1.2billion in savings could be at risk from ill-informed transfers.
This issue could cost consumers billions more once pension dashboards—tools that will allow users to view all their pension pots in one place—are fully implemented.
Patrick Heath-Lay, CEO of the People’s Partnership, expressed concern that the growing trend of pension transfers could significantly harm savers’ financial futures.
Mr Heath-Lay said: “It’s incredibly worrying that our modelling shows more than a billion pounds is potentially lost due to people transferring to higher-charging pension schemes.
“Given market activity around transfers is escalating, this could easily cost consumers billions a year more once commercial pension dashboards are introduced.
“With adequacy of saving levels still a significant factor to future pension policy success, this turbo-charging of the transfer market will ultimately be to the consumer’s detriment, meaning we need to act now to ensure that people have the information they need to compare their options when considering a transfer.”
A Department for Work and Pensions spokesperson said: “We are committed to ensuring people have the right support and information they need to make informed choices about their financial futures.
“This strikes the right balance of providing vital protections as well as freedom of choice in how to use their pension savings.
“Our Value For Money Framework will mean that savings are invested well, they are not being eroded by high charges and that schemes are helping members make the right decisions whilst contributing.”
Martin Lewis tip helps woman boost state pension by staggering £60,000
Anyone aged between 42 and 72 should make the check “now”, Martin Lewis’s Money Saving Expert says.
Martin Lewis tip helps woman boost state pension by staggering £60,000 (Image: ITV)
A woman has managed to boost her state pension by an impressive £60,000 after following a Martin Lewis money tip.
She was “reminded” by the Money Saving Expert founder to check her National Insurance (NI) record to see her state pension forecast. After discovering over 10 years of gaps, she paid voluntary NI contributions, resulting in a significantly larger state pension
In this week’s Money Saving Expert (MSE) newsletter, her husband wrote to the team to share his wife’s success.
David said: “Dear Martin & team, a big thanks for reminding me to top up NI. My wife had 10+ years missing.
“Her pension forecast was £69/wk, but a (large £8,200) contribution to fill the gaps increased it to £132/wk [a £3,280/yr boost, over £60,000 if she gets it for 20yrs] – no brainer!” (sic)
Anyone aged between 42 and 72 should make the check “now”, Martin Lewis’s Money Saving Expert says. (Image: GETTY)
Describing the move as “the single most lucrative thing you can do with your money”, the MSE team explained people must have a full National Insurance record to get the full state pension.
It added: “Temporary rules mean you can buy missing years from as far back as 2006, so anyone aged 40 to 72ish should check now.”
People accumulate NI years through active employment or by receiving NI credits, which are granted during periods of unemployment, illness, or while fulfilling parental or caregiving responsibilities.
Those who have gaps, which may have occurred when credits weren’t claimed, can increase their state pension by purchasing additional NI years to fill these gaps.
To qualify for the full state pension, individuals generally need around 35 years of National Insurance contributions, though this can vary.
People can see if they’d benefit by checking their National Insurance record and state pension forecast on the GOV.UK website.
It should be noted that, while purchasing missing National Insurance years to plug gaps may be beneficial for some people, it may not be for others.
HM Revenue and Customs (HMRC) and the Department for Work and Pensions (DWP) launched an online state pension forecast service this year to help people calculate if they’ll benefit from making voluntary contributions.
Martin Lewis is the Founder and Chair of MoneySavingExpert.com. To join the 13 million people who get his free Money Tips weekly email, go to www.moneysavingexpert.com/latesttip.
