The Department for Work and Pensions (DWP) is urging state pensioners to think about financial support as the cost of living crisis weighs on households across the UK.
Pensioners Urged to Claim £20,300 in DWP Benefits Amid Cost of Living Crisis
By Chourouk Derkaoui
Published on 8 November 2024 13:42
The cost of living issue has encouraged state pensioners to consider claiming pension credit, which could mean a massive £3,900 increase. Pensioners can receive thousands of extra benefits under the Department for Work and Pensions (DWP) Pension Credit.
Labour Benefit Cuts Meet Resistance From Pensioners
Although the Labour Government's plan to abolish payments for many OAP recipients has drawn increasing criticism, it may also unlock the £300 winter heating allowance.
Minister for Pensions Emma Reynolds stated: “As we head into the winter months, I want to ensure the most vulnerable in our society are getting the support they need, and that's why we have a range of measures targeted at helping low-income households.”
Pension Credit aims to boost the earnings of individuals, with incomes who have reached State Pension age by approximately £3900 per year It is believed that around 880000 individuals are eligible, for Pension Credit but do not actually apply for it.
However, pension experts have also unveiled strategies to increase state pensions in the run-up to Christmas, so it's not the only payment available to state pensioners.
National Insurance Credits—£11,000
This may boost your state pension by up to £11,000. Grandparents can claim Specified Adult Childcare (SACC). However, statistics show that despite there being over 12 million state pension claimants in the country, only 150,000 claims for SACC have been made in the last eight years.
According to official government advice, you can benefit from these credits if you meet two conditions: you must be an eligible family member who has been caring for a child under the age of twelve, and the parent or main carer does not need these credits themselves.
Some credits may be available to you as a family member who has cared for a child under the age of twelve if the parent or main carer does not need these credits. However, claims for adult childcare tax credits can only be made after 31 October of the tax year for which you wish to claim the credits. This is because it is necessary to check whether the parent or carer has a qualifying year for National Insurance purposes.
Pension Credit—£3,900
Pension credit is available in two forms: savings credit and guarantee credit. You must be over State Pension age (currently 66) to qualify for Pension Credit Guarantee. Your monthly income must be below the bare minimum that the UK Government considers essential for subsistence. For single people, this minimum is £218.15, while for couples it is £332.95.
Depending on whether you have specific housing costs, are a dependant or are disabled, these amounts may be higher.
Boost Qualifying Years—£5,400
Pensioners who have voluntarily paid Class 3 contributions have been able to increase the number of years they have been eligible for National Insurance.
Generally, these additional payments can be made within six years of the tax year. For example, you have until the end of the 2029 tax year to make up a shortfall in 2022-2023.
To qualify for the State Pension benefits you need at 10 years of contributions, on your National Insurance record to be eligible, for the pension amount of £221 per week. Martin Lewis urges those affected to take immediate action.
In a post on X, Lewis strongly warned: “This is your 6mth warning! For each £825 or less you pay to buy National Insurance years, many gain £5,400+, but many closes in April. It's the MOST LUCRATIVE thing many under age 73 can do, some gain £10,000s. The process ain't quick, so check it now…”