Martin Lewis issues warning for nearly 1million missing out on benefit worth £1,000s a year and free TV Licence
MARTIN Lewis has issued a warning for almost a million people who are missing out on thousands of pounds.
The Money Saving Expert is reminding pensioner households to check their eligibility for pension credit.
It comes after a recent report by Policy in Practice highlighted that around 807,704 pensioners are missing out.
The average amount that goes unclaimed is worth roughly £2,677 a year.
In the latest MSE newsletter, Martin said: "State pensioner with total income under £235 a week (or couple under £350 a week)?
"Check if you're missing out on £1,000s for free.
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"Nearly a million pensioners are missing out on pension credit, a vital benefit worth £1,000s a year for many, which tops up your income.
"Even if you're only due a few quid (most eligible are due far more) it's worth it, as pension credit is a 'gateway benefit' that opens the door to a whole host of other payments too, such as cost of living support, council tax reductions, free TV licences and more which can be worth thousands."
We've explained everything you need to know about the benefit and how to apply below.
Who is eligible for pension credit?
Pension credit is available to people over the State Pension age, currently 66, who live in England, or Wales.
To qualify, you need to have a weekly income of less than £218.15 if you are single and £332.95 if you are in a couple.
Your income is worked out taking into account various elements, including:
- Your state pension
- Any other pensions you have saved, for instance, workplace or private pension savings
- Most social security benefits, for example, carer’s allowance
- Any savings or investments worth over £10,000
- Earnings from a job
It's worth noting that the calculation does not include:
- Attendance allowance
- Christmas bonus
- Disability living allowance
- Personal independence payment
- Housing benefit
- Council tax reduction
How much can I get?
There are two parts to the benefit and pensioners can be eligible for one or both parts - here are the current rates for the tax year:
- Guarantee credit - tops up your weekly income to a guaranteed minimum level. This is £218.15 a week if you're single and £332.95 a week for married couples.
- Savings credit - provides extra money if you've saved money towards retirement. You can get an extra £17.01 a week for a single person or £19.04 a week for a married couple.
You can also get additional pension credit if you have a disability, caring responsibilities or have to pay certain housing costs such as mortgage interest payments.
As an example, you can get either £66.29 a week or £76.79 a week for each child you're responsible for.
How do I apply for pension credit?
YOU can start your application up to four months before you reach state pension age.
Applications for pension credit can be made on the government website or by ringing the pension credit claim line on 0800 99 1234.
You can get a friend or family member to ring for you, but you'll need to be with them when they do.
You'll need the following information about you and your partner if you have one:
- National Insurance number
- Information about any income, savings and investments you have
- Information about your income, savings and investments on the date you want to backdate your application to (usually three months ago or the date you reached state pension age)
If you claim after you reach pension age, you can backdate your claim for up to three months.
What else can you get on pension credit?
Pension credit is known as a "gateway" benefit as it opens up a host of other discounts and freebies.
If you claim it, you might be able to get help with housing benefit, if you are in rented accommodation, as well as a council tax discount.
It also makes you eligible for cost of living payments and the Warm Home Discount scheme.
If you're 75 or over, it can open up a free TV licence too.
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You can claim your free one by calling 0300 790 6117.
Entitledto's determines whether you qualify for various benefits, tax credit and Universal Credit.
MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto's data.
You can use to determine which benefits you could receive and how much cash you'll have left over each month after paying for housing costs.
Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.