Pensioners urged to check Pension Credit eligibility by 18 December to unlock £324 cost of living payment

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Time is running out for thousands of pensioners to receive a pension loan and qualify for the cost of living supplement.

December 18, 11:59pm to apply for Pension Credit and receive the £324 payment.

Pension Credit is worth an average of £3,500 a year and gives people access to other benefits such as cold weather payments, help with NHS costs and extras. Living expenses From Govt.

The £324 allowance is on top of the pensioner’s living expenses, which is either £150 or £300, whichever is more recently paid. Winter fuel charges.

Pension Credit is one of the most under-claimed and misunderstood benefits. It is separate State PensionAnd the State Pension is paid to people of low income age, whether they have savings, a personal or workplace pension, or own a home.

Around 850,000 eligible pensioners lose their pension credit by failing to make a claim.

“Pensioners are facing huge financial challenges this year and need all the support they can to help them through the next few months,” says Helen Morrissey, senior pensions and retirement analyst at the investment site. Hargreaves Lansdowne.

“This year Pension Credit claimants were able to claim an additional Living Cost Payment from the Government and were paid £324. [which claimants can still get if they apply by 18 December] A further £900 is to be paid in installments next year.

We explain what Pension Credit is, who can claim it and how much it’s worth.

What is Pension Credit?

Pension Credit is a payment for people of state pension age and on low incomes.

It consists of two parts: guaranteed loan and savings loan. The former increases your pension income to a certain level and is available to people on lower incomes. The latter is only available to those who reached state pension age before 6 April 2016 and have some money saved for retirement, for example in a personal or workplace pension.

Even if Pension Credit only gives you a small amount, it’s worth claiming as you’ll be eligible for other benefits:

  • Support for mortgage interest (SMI) If you own a residential property
  • Housing benefit if you rent the property you live in
  • Council tax cuts
  • Free TV license if you are aged 75 or over
  • Help with NHS dental treatment, glasses and transport costs to hospital appointments
  • Cold weather fare
  • Warm Home Discount
  • Christmas bonus (only for those receiving guaranteed elements of Pension Credit)
  • Discount on Royal Mail re-routing service for house movers
  • Living expenses of £324 (if applied by 18 December 2022), and living expenses of £900 (paid in 2023)

Is there still time to claim pension credit and get £324 towards living expenses?

Yes, but you need to act fast as applications must be made by Sunday 18 December.

By meeting this deadline, you will pay £324 worth of living expenses between 26 August and 25 September.

According to Tom Selby, head of retirement policy at the investment site AJ BellTo be eligible for the full payment, you only need to be eligible for Pension Credit for one day during that period.

If you’re not sure if you’re eligible for Pension Credit, it’s best to apply before 18 December so you’ve at least received your application. If your claim is successful, you will receive a pension. Credit and payment of £324 (be eligible for a £900 payment next year – on top of the £300 living expenses pensioner families receive).

If your claim is not successful, at least you know you are ineligible and not one of the hundreds of thousands who will lose benefits by failing to claim. Remember that you can make another claim again in the future, for example if your circumstances change.

How much is the pension loan worth?

Pension Credit increases a pensioner’s weekly income to £182.60 (or £9,495 a year). For those with a partner, the joint weekly income is raised to £278.70 per couple (£14,492 per annum). This is known as the Guaranteed Credit part of Pension Credit.

For those with a severe disability, the guaranteed loan is increased by a further £69.40 per week. Must receive one of the following benefits to qualify:

  • Attendance allowance
  • A medium or high rate from the maintenance component of Disability Living Allowance
  • Daily living component of Personal Independence Payment (PIP).
  • Fee for independence of armed forces
  • Daily living component of Adult Disability Allowance (ADP) at fixed or enhanced rate

If you’re looking after another adult and you’re in receipt of Carer’s Allowance (or you’ve claimed Carer’s Allowance but you’re not being paid because you’re getting another benefit that pays more) you can get an extra £38.85 a week.

Those responsible for a child or young person can get an extra £56.35 a week. The child or young person must normally live with you and be 19 years of age or younger. If the child or young person is disabled, you can get another payment.

A final top-up within the guaranteed credit helps cover housing costs. If your house is leasehold or service chargeable, an additional fee may be payable to cover ground rent.

The Savings Credit part of Pension Credit can be worth up to £14.48 a week if you’re single, or £16.20 if you have a partner.

Who is eligible for pension loan?

You must live in England, Scotland or Wales and have reached state pension age (currently 66) to qualify for the benefit.

When applying for a guaranteed loan, your income is calculated; If you have a partner, your joint income is calculated.

The Department for Work and Pensions (DWP) defines income as your state pension and other pensions (even if they are deferred), income from work or self-employment and most benefits.

However, not all benefits count as income. Attendance Allowance, Child Benefit, Disability Living Allowance, PIP, Winter Fuel Allowance, Housing Allowance, Council Tax Reduction and Christmas Bonus are excluded.

Your savings and investments are taken into account, including stocks and any property you own (except the home you live in). If you have £10,000 or less, this will not affect your Pension Credit eligibility.

If you have more than £10,000, £1 per week of income is calculated for every £500 over £10,000. So, if you have £11,000 in savings and shares, this would count as an income of £2 per week.

If your income is below £182.60 a week, Guaranteed Credit will top you up to that amount.

If you are claiming as a couple and your weekly income is below £278.70, it will be topped up by that amount.

The criteria for availing a savings loan are different. This is only available if you reached state pension age before 6 April 2016 and have some savings and/or a personal pension.

You must have an income of at least £153.70 per week if you are single or £244.12 per week if you are a couple.

The eligibility criteria is complex, and this is one of the reasons why many pensioners do not bother to claim.

Use Government Pension Credit Calculator To work out whether and how much you can claim. If you get stuck, call the helpline on 0800 99 1234 (Monday to Friday, 8am to 6pm).

Claiming Pension Loan

You can apply for Pension Credit in a number of ways. Options include You can apply online on the government websiteApplications can be submitted by calling the helpline (0800 99 1234) or by post.

If you have not yet reached state pension age, you can apply up to four months before this date.

If you’re racing to meet the December 18 deadline, the quickest way to apply is online or by phone.

When you apply you will need your National Insurance Number and information about your income, savings and investments. If you have a partner, you will need the same details about them.

“People don’t realize you can get a pension loan if you own a home or have savings,” notes Morrissey. “However, the deadline to submit a successful claim and qualify for £324 in living expenses is fast approaching and it is vital that as many people claim as possible; Pension Loan can make a big difference to pensioner families.



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