Martin Lewis has issued a stark warning to pensioners ahead of the Autumn Budget which Chancellor Rachel Reeves will deliver today (October 30).
Mr Lewis told viewers of his ITV show how Pension Credit is “critically underclaimed” despite the benefit providing on average £3,900 towards a claimant’s income.
Yet he also warned the eligibility for the DWP benefit is “very tight”, an important factor this year as you need to be on a means-tested benefit such as Pension Credit to qualify for the Winter Fuel Payment.
Mr Lewis explained: “For a single person, you need an income of under £11,400 to be eligible for Pension Credit.
“I think that is a very tight means test and Pension Credit is critically underclaimed. Not enough people who are eligible are claiming it, about 700,000 are missing out.”
Pension Credit tops up a person’s income up to £218.15 a week, the equivalent of £11,343.80 a year, or up to £332.95 a week for a claimant who lives with a partner, the equivalent of £17,313.40.
However, there are extra payments on top of this depending on your situation. For example, you can get an extra £81.50 a week if you have a severe disability and you claim a qualifying benefit such as Attendance Allowance, or you may get an extra £45.60 a week if you care for another adult.
Chancellor Rachel Reeves is expected to confirm that benefit payments will increase 1.7% next April in the Budget.
This would increase the Pension Credit income top-up to £221.86 a week for single claimants and to £338.61 a week for couples.
Claiming Pension Credit opens up access to other support, including a free TV licence for claimants aged over 75 and council tax discounts.
Claimants are also eligible for the Winter Fuel Payment, worth £200 or £300 this year. The eligibility rules recently changed for this so you have to be on a means-tested benefit such as Pension Credit to qualify – the payment was previously a universal benefit for people of state pension age.
You have to have reached state pension age, currently 66, to claim the support, although you do not need to be claiming your state pension to claim.
The full new state pension currently pays £221.20 a week while the full basic state pension is £169.50 a week.
You can check how much state pension you are on track to receive using the state pension forecast tool on the Government website.
