I lived on beans as I was worried state pension wouldn’t cover bills but I got £13k extra a year after quick phone call
THOUSANDS of vulnerable pensioners are missing out on a range of benefits by not claiming pension credit and other awards to which they are entitled.
Chancellor Rachel Reeves announced in her July statement that from this winter, ONLY households in England and Wales who receive pension credit or certain other means-tested benefits will be entitled to the Winter Fuel Payment.
Until now, the Winter Fuel Payment has been available to everyone aged over 66.
The move will strip 10million pensioners of the tax-free payment of up to £300 a year.
It is estimated that 880,000 UK pensioners who could be entitled to a Winter Fuel Payment will miss out because they are not signed up for Pension Credit.
When Terry*, 71, was forced to leave his job as a driver two years ago due to crippling osteoarthritis he was not only devastated but worried his state pension wouldn’t cover his bills, especially during the spiralling cost-of-living crisis.
He said: “When I got my diagnosis I had to quit my job, but my state pension barely covered the bills. Things got very, very tight.”
Having been evicted from a previous home when the landlord sold it, Terry felt especially worried about the impact his finances would have on his housing situation.
He was forced to make tough sacrifices to survive — often eating just a can of beans or a sandwich every day.
Always hungry
He said: “I was hungry almost all the time, and my health was shot.
“I spent a lot of time watching television or thinking about how to get out of the mess I had got myself into.”
Despite regularly chatting with his family, Terry kept his financial struggles a secret.
He explained: “There’s nothing more important to me than self-reliance. And as I’ve got older, that’s got stronger.
“I didn’t want to drag anyone else into my problem.”
But eventually Terry was left with no choice — and out of sheer desperation, he contacted charity Age UK.
He said: “I was really reluctant. I thought about it for several days before I worked up the courage to make that initial call.
“But then, from that first call, Age UK quickly managed to turn the situation around.”
With the support of Age UK’s Benefits Entitlement Team, Terry was able to claim Pension Credit.
He also found out he was entitled to the highest level of Attendance Allowance Housing Benefit, plus Council Tax Support.
The extra income — amounting to £13,000 a year — has enabled Terry to eat properly, buy mobility aids and start to enjoy life again.
If you think you might be entitled to the benefit, there has never been a more important time to apply.
Or if you know of an elderly relative or friend who might be in line for Pension Credit, now is the time to offer them support to enquire.
Older people living on low and modest incomes have until this coming Sunday to apply for Pension Credit in order to receive a Winter Fuel Payment this year.
However, many are unaware that successful Pension Credit claims can be backdated by up to three months, so there is more time to make a claim if applicants cannot meet the first deadline.
If you claim Pension Credit after you reach state pension age, the very last day you could claim and guarantee that you can get three months’ backdating to bring you within the qualifying week to also get a Winter Fuel Payment will be December 21, 2024.
When Ann Sheppard, 73, retired from her job as a teaching assistant, she worried about how she would cope without an income.
But Pension Credit provided a financial life line, ensuring she received not only the Winter Fuel Payment but a range of other benefits, too.
She said: “When I stopped working, I was worried about how I would manage. But Pension Credit has really helped me.
“It’s not just the monthly payment, but the other benefits that come with it that really makes the difference.
“There are so many advantages when you receive Pension Credit, including not paying Council Tax. I don’t think people realise.
“Even smaller things, such as not paying for dentistry or glasses. It has helped me hugely.”
“And now it means you get the Winter Fuel Payment, too.”
“I didn’t have a private pension so I applied for Pension Credit.
“I was lucky enough to know about it after helping my own mum with some of her benefits. I phoned to enquire whether I was eligible and the adviser worked out exactly what I was entitled to.”
The payment is designed to help with the higher cost of energy bills in the colder months and is known as the “gateway” benefit for pensioners, because it opens the doors to a wide range of additional support, including reduced water bills, a free TV licence and help with council tax and rent.
Who is eligible?
YOU may be eligible for Pension Credit if you are aged 66 or over and have a low income. Your payments are cut or reduced if you have £10,000-plus in savings.
You can claim if your income is less than £218.15 a week if you are single or £332.95 as a couple.
Even if your income is higher than those thresholds, you can still claim if you meet other criteria, such as having a severe disability, have certain housing costs such as service charges or have a child or young person living with you.
You may also be able to claim if you have a younger partner, as you may still qualify through Universal Credit.
To qualify for the Winter Fuel Payment this year you need to submit your claim for Pension Credit by September 22 .
It means you have until midnight this coming Sunday to qualify for the benefit.
It’s estimated as many as 850,000 people are failing to claim Pension Credit, with some £2billion going unclaimed each year. However, if you fail to apply by Sunday, claims can still be backdated by three months.
Caroline Abrahams from Age UK said: “We really do urge anyone who is feeling the pinch to come forward and check if they’re eligible for extra help this winter.
“We would encourage anyone with an older person in their lives to strike up a conversation about the cost of bills and mention this extra benefit that might help them to stay warm this winter, if they claim.”
Kate Smith, from Citizens Advice, said: “It’s really worth applying even if you think you’ll only get a small amount.
“Even a little Pension Credit can help and could unlock other benefits, such as the Winter Fuel Payment.
“Please check if you qualify — it could make a real difference to your finances.”
Bonus benefits
IF you claim Pension Credit, it opens the doors to additional support.
The state help can add up to an extra £9,665 a year, according to analysts Policy In Practice.
A successful claim means help with energy bills and other essential living costs such as:
- A one-off payment of £150 via Warm Home Discount Scheme.
- A Cold Weather Payment of £25 a week, paid automatically when the average temperature is 0C or below over seven consecutive days.
- Housing benefit, up to £4,338.
- Council tax help of £1,670 a year