I’m £10k better off after discovering I can get Pension Credit – it was life-changing and here’s how you can claim too
THABANI Sithole was living on just £320 a month and in danger of having her home repossessed before she realised she was eligible for a little-known benefit.
The 73-year-old is now thousands of pounds better off thanks to Pension Credit – but nearly one million people just like her are missing out.
The benefit is designed to help people over state pension age (currently 66) and struggling to get by on a low income.
It tops up payments to a minimum of £201.05 per week for a single pensioner and £306.85 for couples.
Before claiming, Thabani, who lives in Streatham, London, was at a “desperate” point, struggling to pay for gas, electric and council tax.
She was living off just a small state pension of £80 a week.
But after chatting with her neighbour who told her she might be eligible for benefits, she got in touch with Age UK in March 2021.
The charity referred her to Independent Age, which provides free information and advice for older people, and helped her apply for Pension Credit.
Thabani now gets £109.61 week extra and has boosted her income by more than £10,000 in total since she started claiming nearly two years ago.
She also found she was eligible for Attendance Allowance payments as her daughter, Khwezi, has to care for her due to her Osteoarthritis and high blood pressure.
She now also gets £369.60 a month on top of the state pension boost.
The extra money has kept a roof over her head and “changed her life” too.
“Now I feel like a normal person with a bright future ahead of me,” she told The Sun.
Not only does the cash boost her income directly, by claiming Pension Credit she qualifies a raft of other help too.
It means she qualifies for a council tax discount of around 40% – saving around £300 a year on the major household bill.
Plus when she turns 75, she will qualify for a free TV licence saving her £159 a year.
Around 850,000 retirees are thought to be missing out on Pension Credit and being urged to apply as it qualifies you for the first £301 cost of living payment.
But the deadline to do so, May 19, is fast approaching.
Thabani, formerly a nurse, has already received her £301 payment as she started claiming Pension Credit in 2021.
She said: “When you go to the shops you usually see things are too expensive but when I saw the £301 coming in I thought ‘thank god’.”
Who is eligible for Pension Credit?
Pension Credit is available to people over the state pension age, currently 66, who live in England, Scotland or Wales.
To qualify, you need to have a weekly income of less than £201.05 if you are single and £306.85 if you are in a couple.
Your income is worked out taking into account various elements including:
- Your state pension
- Any other pensions you have saved, for instance, workplace or private pension savings
- Most social security benefits, for example, carer’s allowance
- Any savings or investments worth over £10,000
- Earnings from a job
It’s worth noting that the calculation does not include:
- Attendance allowance
- Christmas bonus
- Disability living allowance
- Personal independence payment
- Housing benefit
- Council tax reduction
How much can you get?
There are two parts to the benefit and pensioners can be eligible for one or both parts – here are the current rates for the tax year:
- Guarantee credit – tops up your weekly income to a guaranteed minimum level. This is £201.05 a week if you’re single and £306.85 a week for married couples.
- Savings credit – provides extra money if you’ve saved money towards retirement. You can get an extra £15.94 a week for a single person or £17.84 a week for a married couple.
For example, Thabani receives just the guarantee credit element as she has not saved towards her retirement.
You may also get additional Pension Credit if you have a disability, caring responsibilities or have to pay certain housing costs such as mortgage interest payments.
As an example, you can get either £61.88 a week or £72.31 a week for each child you’re responsible for.
If you are disabled or care for someone who has a disability, you may be able to get more.
You can also get a host of other freebies on the benefit too beyond council tax discounts and cost of living payments.
Those on the benefit can get help with NHS costs, including free wigs and fabric support.
How do I apply and how will I be paid?
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 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 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.
Thabani had help from Independent Age with her Pension Credit application.
She said: “Some elderly people don’t even know how to download the forms.
“I tell them to call the (Independent Age) number and they will help you with the forms.
“There will always be someone at the end of the line to help you fill in your form.”
You can contact the Independent Age helpline on 0800 319 6789.
The benefit is usually paid into your bank account every four weeks.
When you make your claim you’ll be asked for your bank, building society or credit union account details.
But if you have problems opening or managing an account, you might be able to claim a different way.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk