Families of pensioners are being encouraged to assist them in claiming a potential £3,500, which could provide crucial support. The importance of the Pensions Credit has grown as it is now tied to eligibility for the £200 winter fuel payment.
Following alterations to the scheme by Chancellor Rachel Reeves, only those who claim Pensions Credit will qualify, resulting in an estimated 10 million people missing out. Financial expert Martin Lewis has previously suggested that Pensions Credit should be automatically enrolled due to its significance, but the new Labour government has yet to implement this change, leaving an estimated 800,000 of the nation’s poorest individuals without this benefit.
Pension Credit is a supplementary benefit intended to boost income for those who haven’t accrued enough national insurance credits for a full state pension. Single individuals with a total income of around £220 per week and couples with £320 per week could be eligible for this vital support.
Mr Lewis has suggested that families of eligible individuals could assist them in applying, potentially providing an additional £3,500 annually. Earlier this year, the financial guru urged family members and friends to spread awareness about Pension Credit, emphasising the transformative effect it could have on society’s most vulnerable.
Mr Lewis has expressed his “deep frustration” at the fact that many individuals who lack sufficient national insurance credits for a full state pension are not claiming Pension Credit, which could offer them crucial financial assistance, reports Teesside Live.
Lewis emphasised the importance of aiding the hundreds of thousands living in poverty who miss out on pension credit. He suggested that the system should be automated to ensure those entitled, especially those with the lowest incomes, receive Pension Credit without needing to apply.
“That should be our priority. If you’re listening to this please be an ambassador for helping the older members of our community get what they’re entitled to by claiming Pension Credit,” he urged his audience.
How to claim Pensions Credit:
You can begin your application up to 4 months before reaching State Pension age. You can apply any time after you reach State Pension age, but it’s only possible to backdate claims by 3 months.
This means you could receive up to 3 months of Pension Credit in your initial payment if you were eligible during that period.
If you’ve already applied for your State Pension, you can use the online service, or alternatively, call the Pension Credit claim line on 0800 99 1234 to apply by phone.
Eligibility for Pension Credit typically applies to single pensioners with a total weekly income of less than approximately £220 or pensioner couples with a combined weekly income under about £320, taking into account all sources of income. For further details on how to claim, click here.
Pension Credit acts as a key benefit, unlocking access to additional financial assistance, including a cost of living payment that can reach up to £600, a free TV licence valued at £160 annually, council tax reductions that could save thousands each year, warm home discounts worth £150 per annum, cold weather payments, complimentary dental care, and vouchers for free spectacles. Lewis emphasised that these perks are activated by receiving Pension Credit and pointed out that there are 800,000 eligible UK pensioners not currently claiming it.
Mr Lewis has urged for improved automation and data gathering to ensure those entitled to Pension Credit are automatically notified and able to tap into this crucial aid. “There is a safety net there which has big holes in it because 800,000 people are falling through,” he remarked.
