State pensioners urged to claim £3,500 retirement boost

The Department for Work and Pensions (DWP) is urging people to check their entitlement to Pension Credit. In December last year, Age UK estimated that around a third (34 percent) of pensioners eligible to claim Pension Credit are missing out.

It works out at around £3,500 a year on average.

Pension Credit tops up weekly income to a guaranteed minimum level of £182.60 a week for single pensioners or £278.70 for couples.

It is a tax-free payment for which those who have reached the state pension age, currently 66, and live in the UK may be eligible to get.

Income includes:

  • state pension
  • other pensions
  • earnings from employment and self-employment
  • most social security benefits, for example, Carer’s Allowance.

People may still be eligible for Pension Credit if they have not paid National Insurance contributions, have some savings or a small pension, live with their grown-up family, and/or own their own home.

The DWP announced that applications for the benefit specifically designed to help people of state pension age on a low income are up 73 percent compared with this time last year.

Secretary of State for Work and Pensions, Mel Stride MP also confirmed that letters will be sent out to 11,000 older people to tell them about the April uprating and to “stress the point about Pension Credit”.

Mr Stride said: “Two-thirds of those we believe are eligible for Pension Credit receive it, but that means that one-third do not.

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“We cannot identify them precisely in advance, which is why communication is so important. We will write to 11,000 pensioners soon to tell them about the uprating and to stress the point about Pension Credit.”

The DWP has also launched a new television advert to promote awareness of the benefit.

This will run alongside its ongoing social media campaign encouraging friends and family members to check if anyone they know may be eligible.

Pension Credit is a passport benefit which can unlock extra help with daily living costs including Council Tax, Housing costs and heating bills.

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The latest DWP figures indicate £1.7billion is being left unclaimed by around 800,000 older people across Great Britain who are missing out on Pension Credit.

The weekly payment rate will rise in April:

  • Single: £201.05, up £18.45 from £182.60
  • Couple: £306.85, up £28.15 from £278.70

People can check their eligibility for Pension Credit using the online calculator or by calling the Pension Credit helpline on 0800 99 1234.

To use the calculator on GOV.UK, individuals will need details of earnings, benefits and pensions, savings and investments.

They’ll need the same details for their partner if they have one.

More information can be found on the Government website.

If someone qualifies for Pension Credit, they can also get other help, such as:

  • Housing Benefit if they rent the property they live in
  • Support for Mortgage Interest if they own the property they live in
  • Council Tax discount
  • Free TV licence if they are aged 75 or over
  • Help with NHS dental treatment, glasses and transport costs for hospital appointments
  • Help with their heating costs through the Warm Home Discount Scheme
  • A discount on the Royal Mail redirection service if they are moving house

How to claim
Britons can start their application up to four months before they reach state pension age. They can claim any time after they reach state pension age but their claim can only be backdated for three months.

This means they can get up to three months of Pension Credit in their first payment if they were eligible during that time.

They will need:

  • a National Insurance number
  • information about their income, savings and investments
  • their bank account details, if they’re applying by phone or by post.

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