State pensioners could save hundreds of pounds through new freebies and discounts. In total, there are seven benefits worth up to £11,352.
Benefits and Savings Available to State Pensioners
Recent guidance from the Department for Work and Pensions (DWP) advises state pensioners on how to boost their benefits. These include a benefit increase which could exceed £100 a week and a Pension Credit Shift amounting to £75 a week.
Additionally, pensioners can benefit from a variety of transport changes along with National Insurance Amendments.
Presently, the State Pension age is fixed at 66 years old for both genders, but this will slowly increase starting 6 May 2026. Two different systems have been in place since April 2016: the old State Pension also known as basic State Pension and the new State Pension.
The system you are subject to is determined by whether you attained State Pension age before or after the new system was implemented.
Benefit Boost: £108.55 per Week
If you receive certain benefits, you may qualify for additional financial support which could amount to £5,644.60 annually. You can be eligible if you've attained state pension age and have a physical or mental condition, or both, or if you suffer from a severe disability and need help with self-care or supervision.
In order to submit a claim, you must live in Great Britain, have resided in Great Britain for a minimum of two of the past three years, and regularly reside in the UK, Ireland, Isle of Man or the Channel Islands.
Additionally, you must not be subject to immigration control, except if you are a sponsored immigrant and should not be receiving Disability Living Allowance (DLA), Adult Disability Payment (ADP) or Personal Independence Payment (PIP).
Pension Credit: £75 per Week
Pension Credit is split into two parts. The standard minimum guarantee, which is set to increase, requires your income to be below specific thresholds. Even if your income is slightly higher, you might still qualify if you're severely disabled, a carer, or have housing costs like a mortgage.
If you reached State Pension age before April 6, 2016, or have savings or another pension, you may qualify for the savings credit part of Pension Credit, which is also expected to increase from April.
Additional payments are available if you're a carer, severely disabled, or responsible for a child or young person.
You can submit an application for Pension Credit online via the GOV. UK website, by calling 0800 99 1234. You can also complete and submit a paper application form.
National Insurance reduction: £26.81 per Week
After reaching State Pension age, you will no longer be required to pay Class 1 National Insurance contributions if you are employed. If you're a business owner you will stop paying Class 4 National Insurance from April 6, which marks the start of the start of the tax year, after you attain State Pension age.
Last February, Chancellor Jeremy Hunt announced a 2% cut to National Insurance (NI) contributions for both employees and business owners. This represented the second reduction brought to NI in less than six months, raising speculation that the government may be contemplating eliminating the tax altogether.
Free Prescriptions: £2.28 per Week
Anyone aged 60 or over are can be eligible for up to £119 worth of free prescriptions per year. For people under the age of 60, the NHS grants prescription prepayment certificates for 3 or 12 months, which can help cover all prescriptions during that period.
Once you reach 60, you can also qualify for a free NHS vision test. Make sure you notify your optician when you attain this age.
Free Bus Pass: £2.46 per Week
In the UK, regardless of your gender, an older's person bus pass is granted to you when you reach the state pension age, which is currently fixed at 66.
This pass grants you free travel during off-peak hours if you reside in the West Midlands, you can use your pass on buses from 9.30am until 11.59pm. In addition, free travel is granted.
If you have to travel before 9.30am, you can still use the £1.50 single fare on National Express West Midlands buses. You will just need to show your travel pass to the driver and ask for a £1.50 single ticket.
Discounted Rail Fare: £2.73 per Week
The Senior Railcard is designed for people aged 60 and over, offering a third off train fares throughout Great Britain. It costs £30, and if you use it a few times, it quickly pays for itself, equivalent to just £2.50 per month if bought annually.
Alternatively, you can get a three-year Railcard for £70, saving £20 compared to buying three separate one-year cards.
For London residents aged 60 or over, the 60+ Oyster card provides free travel on Transport for London services and most National Rail services within the city. You can find more details about eligibility, benefits, and how to apply for the 60+ Oyster photocard online.
Cold Weather Payment: £25
You'll get a £25 payment when the temperature in your area stays at zero degrees Celsius or colder for seven days in a row. This payment arrives within 14 working days after each stretch of freezing weather. And if the cold persists, you can receive several £25 Cold Weather Payments.