State pensioners can save thousands of pounds by claiming the DWP’s Pension Credit. Not only does the benefit top up income, but it also serves as a gateway to other discounts and freebies, including a free TV licence, a Council Tax reduction, and the reinstatement of the Winter Fuel Payment.
Over 880,000 more Britons could be eligible for the Department for Work and Pensions’ Pension Credit benefit but aren’t claiming it.
The support is worth an average of £3,900 a year and works to top up low-income pensioners’ state pension to give them a more reasonable standard of living.
Eligible claimants can also qualify for even more cost-of-living support, adding thousands of pounds more to their annual savings.
The TV licence costs £169 a year and all households must have one if they watch or stream live TV or BBC iPlayer. However, people aged 75 and over who claim Pension Credit can get theirs for free.
Additionally, Council Tax Support (also known as Council Tax Reduction) helps people on low incomes or certain benefits with their Council Tax bill.
The amount of support varies depending on individual circumstances and location, but Pension Credit recipients may be eligible to have their Council Tax covered in full.
With the average Council Tax bill for Band D properties at £1,578 a year, this could result in significant savings for those who qualify.
Meanwhile, claiming Pension Credit entitles people to the annual Winter Fuel Payment, which can provide up to £300 to help with heating bills.
The combined savings from a free TV licence, Council Tax reduction, and the reinstated Winter Fuel Payment can total up to £1,872 annually.
The Government recently capped the eligibility criteria for this winter benefit following the emergence of a “£22billion hole” in the nation’s finances left by previous Governments.
It has since launched a drive to encourage people who aren’t claiming to check if they qualify for Pension Credit.
Who is eligible for Pension Credit?
To claim, a person must live in England, Scotland or Wales and have reached the state pension age (currently 66 and over). They or their partner must also be receiving housing benefits.
If this applies, the person must then work out their total weekly income. This should include the state pension, other pensions, earnings from employment and self-employment, and most social security benefits, such as Carer’s Allowance.
Not all benefits are counted as income. For example, the following are not counted and shouldn’t be included in the calculation:
- Adult Disability Payment
- Attendance Allowance
- Christmas Bonus
- Child Benefit
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Social fund payments, such as the Winter Fuel Allowance
- Housing Benefit
- Council Tax Reduction.
People are most likely to be eligible if their total weekly income is roughly under £220.
However, if their income is higher, they might still be eligible so it’s worth checking the Government Pension Credit calculator just in case.
To apply for the benefit, people can reach the helpline by telephone on 0800 99 1234 or by textphone on 0800 169 0133. They can also apply online here.
