Warning for 11million on state pension to check for letter or risk missing £3,900 a year pay boost and free TV licence
MILLIONS of households are being urged to keep an eye out for new letters which could mean a £3,900 benefit boost.
The Department for Work and Pensions (DWP) is writing to Brits to make sure they sign up to receive pension credit.
It comes as pensioners across the country are facing rising costs and bills, with millions now excluded from the £300 winter fuel payment.
The DWP is writing to 11million Brits this month urging them to check if they qualify for the boost.
The letter will include an accompanying leaflet encouraging people to sign up for pension credit.
With state pension rates set to rise by 4.1% in April, the department is urging pensioners to check if they can get the extra cash too.
Pensions Minister Torsten Bell said: “Over the coming weeks, as part of the annual state pension uprating exercise, around 11million pensioners will receive a leaflet promoting Pension Credit along with their state pension uprating letter.”
Pension Credit is a benefit for older people on low incomes that currently tops up their weekly income to £218.15 if they’re single or £332.95 as a couple.
As many as 800,000 people are thought to be missing out on pension credit.
The lack of take-up of the benefit is largely attributed to a lack of awareness that it exists.
The government launched a drive to encourage more people to check if they could get the benefit earlier this year, known as its Pension Credit take-up campaign.
The DWP says the average pension credit award is worth over £3,900 a year.
Even a small award can unlock further support – such as help with housing costs, council tax and heating bills.
And for those over 75, this includes a free TV licence.
This is even more vital as the price of a TV licence will rise by £5 from £169.50 to £174.50 in April.
It comes as both state pension and pension credit are set to be increased in April.
In April 2025, the state pension will increase by 4.1%, bringing the weekly payment to £230.30.
Guaranteed pension credit payments will also go up from £218.15 a week to £221.86, or £332.95 to £338.61 for couples.
Who qualifies for Pension Credit?
Pension Credit tops up your weekly income to £218.15 if you are single or to £332.95 if you have a partner.
This is known as “guarantee credit”.
So, if your income is lower than this, you are likely to be eligible for the benefit.
If your income is slightly higher, you may still be eligible if you have a disability, you care for someone, you have savings or you have housing costs.
You could get an extra £81.50 a week if you have a disability or claim any of the following:
- Attendance Allowance
- The middle or highest rate from the care component of disability living allowance (DLA)
- The daily living component of Personal Independence Payment (PIP)
- Armed forces independence payment
- The daily living component of adult disability payment (ADP) at the standard or enhanced rate.
You could get the “savings credit” part of Pension Credit if both of the following apply:
- You reached State Pension age before April 6, 2016
- You saved some money for retirement, for example, a personal or workplace pension.
The Sun has a benefits calculator made in partnership with charity Turn2Us that you can use to work out if you’re eligible for any benefits you may be missing out on here.
The government also has a Pension Credit calculator you can use to check if you may be eligible here.
What will I get when I claim Pension Credit?
SOME people will receive thousands of pounds once they claim Pension Credit, while others will be given just pennies.
But it is still worth making a claim either way as it opens the door to more financial help.
Once you claim Pension Credit you may receive:
- Housing Benefit if you rent – worth thousands a year.
- Mortgage Interest support – on up to £100,000 of your mortgage or loan.
- Council tax discount – worth thousands each year.
- Free TV licence if you are aged over 75 – worth £169.50 a year.
- NHS dental treatment, glasses and transport costs for hospital appointments help.
- Royal Mail redirection service discount – worth up to £48.
- Warm Home Discount if you get Guaranteed Pension Credit – worth £150.
- Cold Weather Payment – worth £25 for every seven day period of cold weather between November 1 and March 31.
- Winter Fuel Allowance – worth up to £300 a year.
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 number
- Information about any income, savings and investments you have
- Information about your income, savings and investments on the date you want to backdate your application to (usually three 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.
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