A MAJOR change now makes it easier for 850,000 to get a £3,500 annual income boost.
The move is aimed to make it easier for thousands of hard-up state pensioners to apply for extra cash to help with the cost of living.
GettyHundreds of thousands of hard-up households can get a £3,500 annual income boost with pension credit[/caption]
The Department for Work and Pensions (DWP) has introduced a new interactive application form to help state pensioners wishing to apply for pension credit by post.
The new pension credit claim form allows customers to fill in their details on what used to be a handwritten form – on their computer.
Customers can then print it off and post it directly to the Pension Service.
The new form offers an alternative way of applying for pension credit for those who can’t apply over the phone.
And it is aimed to help increase the uptake of pension credit for those who are hard of hearing or don’t have hours to spend talking to an operator.
Some 850,000 households eligible for pension credit aren’t claiming the benefit which can boost their weekly income,
Pensioners with an income of less than £200 a week, or couples with less than £300 a week should check whether they are entitled to pension credit.
Low-income retirees can get more than £3,500 a year to support everyday costs through pension credit.
Successful claims can also get up to three months’ worth of backdated payments.
Pension credit recipients also automatically qualify for cost of living cash offered by the government – including a free £900 payment later this year.
Who is eligible for pension credit?
It is available for people who are over the state pension age, and who live in England, Scotland or Wales.
This is currently rising to 66 for both men and women.
It used to be the case that couples, where one person was over state pension age, could claim, but new rules now mean that both people in a couple must be over retirement age to apply.
This means if you’re single and move in with a partner who is younger than the state pension age, you will stop being eligible.
But if you’re already receiving pension credit under the old system it won’t stop unless your circumstances change.
To qualify, you’ll need to have a weekly income of less than £182.60 for single people or £278.70 for couples.
Your income is worked out taking into account various elements including:
Your state pensionAny other pensions you have saved, for instance, workplace or private pension savingsMost social security benefits, for example, carer’s allowanceAny savings or investments worth over £10,000Earnings from a job
The calculation does not include:
Attendance allowanceChristmas bonusDisability living allowancePersonal independence paymentHousing benefitCouncil tax reduction
If your income is too high to get pension credit, you may still get some savings pension credit, so it’s worth checking.
How much can you get in pension credit?
There are two parts to the benefit and pensioners can be eligible for one or both parts:
Guarantee credit – tops up your weekly income to a guaranteed minimum level. This is £182.60 a week if you’re single and £278.70 a week for married couples.Savings credit – provides extra money if you’ve saved money towards retirement. You can get an extra £14.48 a week for a single person or £16.20 a week for a married couple.
You may also get additional pension credit if you are disabled, have caring responsibilities or have to pay certain housing costs such as mortgage interest payments.
For instance, you can get either £56.35 a week or £66.85 per week for each child or young person you’re responsible for.
If you are disabled or care for someone who is disabled, you may get more.
For example, if you have a severe disability you could get an extra £69.40 a week or if you care for another adult you could get an extra £38.85 a week.
How do I apply?
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 numberInformation about any income, savings and investments you haveInformation about your income, savings and investments on the date you want to backdate your application to (usually 3 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.
If you’d prefer to apply by post – you can do so using a new interactive application form.
Send the claim form to the Pension Service, or ask someone to do it for you.
The Pension Service 8
Post Handling Site B
Wolverhampton
WV99 1AN
You can also contact a voluntary organisation like Citizens Advice or Age UK if you need help with the form.
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.