Thousands of state pensioners across the UK face losing their free TV Licence and energy bills discount in September if they fail to act.
That’s because the DWP is sending notices in the post to people across the UK of state pension age, to tell them they are being ‘migrated’ from ‘legacy benefits’ to Universal Credit instead.
One of the benefits being targeted for the changeover to Universal Credit is Pension Age Tax Credit, or Pension Credit for short.
In July, the DWP began sending letters to state pensioners it wanted to transfer from Pension Credit and from September, it will begin sending letters to more state pensioners who will be moved to Universal Credit instead.
But when you receive the letter, you must respond to the DWP’s call to action or you face the prospect of losing your benefits – and Pension Credit is a ‘qualifying’ benefit for several others.
A total of two million people on these legacy benefits are slowly being moved to Universal Credit.
The process sees the DWP send a migration notice to someone on one of the old benefits. That benefit claimant then has to take action within three months to avoid losing their benefits entirely.
A total of 1.1 million migration notices were sent out by the DWP between July 2022 and Jul 2024, but 284,660 people have lost their benefits after failing to act.
Those moving to Universal Credit will begin to receive notices on Monday, September 1.
Pension Credit is a ‘qualifying benefit’ which can also allow you to claim various other entitlements, such as a free TV Licence, Warm Home Discount and Council Tax reductions of up to 100 percent.
The list of entitlements from Pension Credit includes:
- Housing Benefit if you rent the property you live in
- Cost of Living Payments
- Support for Mortgage Interest if you own the property you live in
- a Council Tax discount
- a free TV licence if you’re aged 75 or over
- help with NHS dental treatment, glasses and transport costs for hospital appointments, if you get a certain type of Pension Credit
- help with your heating costs through the Warm Home Discount Scheme
- a discount on the Royal Mail redirection service if you’re moving house
The government has also warned that this could lead to bill rises for pensioners.
It said: “Those who are currently eligible for pension-age Council Tax Reduction but who move to UC have the potential to see their council tax bills rise. This is because the Council Tax Reduction Schemes Regulations 2012 specifically exclude people who receive Universal Credit from receiving pension age council tax reduction.”
Instead, those affected would have to apply for a local council working age scheme which “may provide a smaller reduction.”
