What is pension credit and how do I claim a free TV licence?

HUNDREDS of thousands of pensioners could qualify for a free TV licence but aren't claiming what's needed.

The latest government data reveals an estimated £1.7billion in Pension Credit is going unclaimed.

The money is given to pension households on low incomes to help with living costs, but they can get extra perks such as a free TV licence or energy bill help.

Currently, over 1.4 million pensioners in Britain receive Pension Credit but close to 850,000 are eligible and not claiming it.

You can apply for the discount on the TV licensing website or by calling 0300 790 6117.

Below, we explain what pension credit is, who is eligible and how you can get a free TV licence.

What is Pension Credit and who is eligible?

You can get different amounts of Pension Credit depending on your circumstances.

There are two parts to it, and pensioners can be eligible for one or both parts:

• Guarantee credit - tops up your weekly income to a guaranteed minimum level. This is £201.05 a week if you're single and £306.85 a week for married couples.
• Savings credit - provides extra money if you've saved money towards retirement. You can get an extra £15.94 a week for a single person or £17.84 a week for a married couple.

You can also get additional pension credit if you are disabled, have caring responsibilities or have to pay for certain housing costs such as mortgage interest payments.

For instance, you can get either £72.31 a week or £61.88 per week for each child or young person you’re responsible for.

If you have a severe disability you could get an extra £76.40 a week or if you care for another adult you could get an extra £52.75 a week.

To be eligible, you must live in England, Scotland or Wales and have reached state pension age.

But you must also have a low enough income that it needs topping up with Pension Credit.

Your income is calculated based on your state pension allowance, other pensions, your employment and self-employment earnings and some social security benefits, including Carer's Allowance.

But not all benefits are counted as income, including:

• Adult Disability Payment
• Attendance Allowance
• Christmas Bonus
• Child Benefit
• Disability Living Allowance
• Personal Independence Payment
• social fund payments like Winter Fuel Allowance
• Housing Benefit
• Council Tax Reduction

How do I apply?

You can apply for Pension Credit up to four months before reaching state pension age.

Crucially, you can apply any time after you reach state pension age, but your application can only be backdated by three months.

This means you can get up to three months' worth of the benefit in your first payment if you were eligible during that period.

But anything beyond that and you won't get more than three months of backdated payments.

You'll need some personal information to hand when you apply, including your National Insurance number, and details about your income, savings and investments.

When it comes to actually applying, you can do this online on the government's website.

You can also apply by phone by calling 0800 991 234 or by post. The address to send your claim form to is:

The Pension Service 8
Post Handling Site B
Wolverhampton
WV99 1AN

How will I be paid?

Your benefits are usually paid into an account, for instance, a bank account.

They're usually paid every four weeks.

You’ll be asked for your bank, building society or credit union account details when you claim.

But if you have problems opening or managing an account, you might be able to claim a different way.

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