Martin Lewis issues 48-hour warning to everyone above state pension age – are you missing out on free cash?
MARTIN Lewis has issued a 48-hour warning to people above state pension age to avoid missing out on free cash.
The consumer champion has urged “just under a million” Brits to sign up for pension credit so that they can qualify for the government’s cost of living payment.
He urged viewers on ITV’s Good Morning Britain this morning to sign up ahead of the Friday, May 19 deadline to get the first £301 instalment.
Pension credit is one of the qualifying benefits for the cash help, but Martin said just under one million pensioner households are missing out.
Low-income retirees can on average £3,500 a year to support everyday costs through the benefit.
So if you make a successful claim by Friday and are able to backdate your payments by the full three months – you’ll be eligible for the cash.
Martin said: “It’s a really big hard deadline, if you’re eligible for pension credit and you’re missing out, you need to check now, today or tomorrow, or Friday at the latest – because if you are eligible, then you get that extra £301.”
Martin went onto explain that people who don’t claim because they may think they will only get 50p a year should still do it because it is a “gateway” benefit.
He went onto list some of the possible bonuses to claiming pension credit, including: qualify for all three instalments of the the £900 cash, if you’re over 75 you’re eligible for a free TV licence, you might also be eligible for council tax benefits, and housing benefit.
Martin urged: “It is a gateway to so many other entitlements that you have to understand that even if the pension credit itself is trivial, everything else it opens the door to is massive.
“Please check before Friday and if you know someone who’s of state pension age, on a low income, a polite little word to them that just says ‘do you get pension credit? because you might be eligible’.”
You can claim the benefit online or by calling the pension credit claim line on 0800 99 1234.
Before you make a claim it’s important to have all your details on hand.
You’ll need your National Insurance number, bank account details and information about your income, savings and investments.
Who is eligible for pension credit?
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 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
The calculation does not include:
- Attendance allowance
- Christmas bonus
- Disability living allowance
- Personal independence payment
- Housing benefit
- Council 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 much can you get in pension credit?
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.
You may also get additional pension credit if you are disabled, have caring responsibilities or have to pay certain housing costs such as mortgage interest payments.
For instance, you can get either £61.88 a week or £72.31 per week for each child or young person you’re responsible for.
If you are disabled or care for someone who is disabled, you may get more.
For example, if you have a severe disability you could get an extra £76.40 a week or if you care for another adult you could get an extra £42.75 a week.
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 3 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.
How will I be paid?
Your benefits are usually paid into an account, for instance, a bank account.
They’re usually paid every four weeks.
You’ll be asked for your bank, building society or credit union account details when you claim.
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