Financial expert Martin Lewis is advising state pensioners to see if they qualify for an extra £988 per year from the Government.
State Pensioners Can Boost Income with Pension Credit
The Department for Work and Pensions (DWP) offers Pension Credit, a frequently underclaimed benefit that could increase eligible individuals' income by hundreds of pounds.
This benefit includes two components: Guarantee Credit and Savings Credit. It is available to those who are of state pension age (currently 66) or older and have a low income.
Guarantee Credit is the major component ensuring someone's weekly income is increased to a certain minimum level.
For 2024, this equals £218.15 a week for single applicants and £332.95 a week for couples.
In the meantime, Savings Credit offers “an extra boost” of up to £17.01 a week for singles and £19.04 a week for couples. This additional payment totals as much as £990.08 per year.
Savings Credit is accessible to anyone who attained the state pension age before April 2016 and saved for retirement through personal or workplace pensions.
People who do not receive the Guarantee Credit portion of Pension Credit may still be eligible for Savings Credit, so it is critical to file a claim. However, the benefit must be claimed; it is not payable automatically.
Martin Lewis Highlights Pension Credit Claims Gap and Application Process
Martin Lewis's Money Saving Expert website reports: “More than three million households are eligible for Pension Credit, but it's estimated that over 800,000 don't claim – in many cases because they don't realise they could be entitled to it.”
It further states: “[Pension Credit] is NOT automatic so you MUST claim – here's how. You can apply via Gov.uk if you've already claimed your state pension, otherwise phone the Pension Service on 0800 99 1234 (or the Northern Ireland Pension Centre on 0808 100 6165). You can backdate it for three months, so the quicker you check, the quicker you'll benefit.”
On Good Morning Britain, the financial expert noted: “It is a national tragedy that up to one million pensioners are missing out on this rather substantial entitlement in many cases.
“Many of those pensioners have been paying into the system for years and what Pension Credit is meant to do, is top people’s income up so if their state pension or other income isn’t enough, they still have a reasonable standard of living.”
Those claiming Pension Credit may also qualify for other forms of assistance, including the Government's Winter Fuel Payment. This benefit assists seniors with heating expenditures during the winter, paying between £100 and £300 to individuals who meet the eligibility requirements.
The benefit was previously provided for every pensioner in England and Wales born before a specific date. However, Chancellor Rachel Reeves declared that starting this year, only those receiving means-tested benefits, like Pension Credit, will be eligible.
Pension Credit recipients may also be eligible for other forms of financial assistance, including council tax discounts and free TV licences.
People can visit the website here or phone the Pension Credit assistance line at 0800 99 1234 to check whether they are eligible for additional benefits.