MARTIN Lewis has urged Brits on a low income to check if they qualify for a £3,500 annual boost.
The MoneySavingExpert.com (MSE) addressed viewers on Good Morning Britain last week.
Martin Lewis gave the tips during his Wallet Wednesday segmentRex
During his Wallet Wednesday segment, Martin warned that 850,000 people are missing out on pension credit.
Pension Credit is designed to boost your income if you don’t have lots of money coming in.
It is known as a “gateway” benefit as it opens up other forms of help, including cost of living payments, council tax discounts and a free TV Licence if you are 75 or over.
But hundreds of thousands aren’t claiming it when they could be – and it could see your income boosted by thousands of pounds.
Martin said: “Pension credit gives you income and it means you’re entitled to other benefits.”
“If you’re a single pensioner with an income below £220 a week or a pensioner couple with an income below £320 a week then check if you’re owed it [pension credit].”
While Martin said he can’t guarantee everyone will get it, but it’s always worth checking.
He said: “Use the Gov.uk pension calculator or call the pension credit helping.”
If you do claim pension credit, then you could also be eligible for housing benefit.
He said: “There are 250,000 pensioners missing out on another £5,000 a year on housing benefit.”
If you’re applying for pension credit, then you should apply for housing benefit at the same time.
Though if you’re getting pension credit already, then you can apply too.
Simply contact your local council to see if you’re eligible.
How much is pension credit?
There are two parts to Pension Credit, called Guarantee Credit and Savings Credit.
In some cases, you might be eligible for both parts.
Guarantee Credit tops up your weekly income to a minimum amount while Savings Credit is a top-up for those who have a low income or savings.
This is how much the two parts are worth:
Guarantee credit – £201.05 a week if you’re single and £306.85 a week for married couples.Savings credit – £15.94 a week for a single person or £17.84 a week for a married couple.
You might be able to get additional Pension Credit if you have a disability, caring responsibilities or have to pay certain housing costs such as mortgage interest payments.
For example, you can get either £61.88 a week or £72.31 a week for each child you’re responsible for.
Who is eligible?
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 £201.05 for single people or £306.85 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 do I apply?
You can start your application up to four months before you reach state pension age.
You can make an application 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)
You can also get help with the application process through charities and non-profit organisations such as Independent Age.