You could be entitled to pension credit – here’s what you need to know.
A senior woman managing her finances (Image: Getty)
Nearly a million British pensioners are missing out on pension credit worth £10,000 a year, according to official government figures.
There is £1.7bn in unclaimed pension credit from the Department of Work and Pensions, meaning there are 850,000 older Brits failing to take advantage of the means-tested benefit.
State pensioners could be eligible to claim an additional £2,677 per year as a top-up to their retirement income. However, there are lots of other freebie benefits that those eligible can claim, meaning the total savings amount to around £10,000.
Pension credit is split into two payments. First, there’s the Guarantee Credit element which sees single people given a weekly payment of £218.15 and couple receive £332.95. Then, there’s the Savings Credit element, which provides additional support.
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Pensioners can claim the credit from the Department of Work and Pensions (Image: Getty)
However, the Savings element of Pension Credit is is only available to those who reached state pension age prior to April 6, 2016, meaning they’ll be at least 66.
Pension Credit is a gateway to numerous other money-saving perks.
Rachel Reeves’ recent changes to the Winter Fuel Payment – changing it from a universal benefit to a means-tested payment – means that only those on Pension Credit can claim the £300 support.
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An older man looking at a letter (Image: Getty)
Some of the benefits that Pension Credit claimants could get are:
- Council tax reductions
- Cold Weather Payment
- Free NHS dental health treatment
- Free TV licence
- Housing Benefit support
- Winter Fuel Payment
Plus, eligible pensioners can receive large Council Tax reductions, worth more than £1,000 a year depending on their local authority.
Personal finance expert Fiona Peake from Ocean Finance is calling on Brits not to assume the claiming process is complicated and apply for Pension Credit.
She said: “Many people assume that claiming Pension Credit is a complicated process or that they won’t qualify because they have savings or a small private pension.
“In reality, it’s a straightforward process, and the rules are more generous than you might think. It’s always worth checking; even if you only receive a small amount of Pension Credit, it could unlock other support worth thousands of pounds.”
Checking eligibility is straightforward through the Government’s Online Calculator or by calling the Pension Credit helpline.
