State pension: Extra benefit could increase pensioners’ income every week
PENSIONERS may be able to claim a weekly boost and top up their retirement income.
Therese Coffey outlines the benefits of Pension Credit scheme
With the cost of living on the rise as inflation continues to surge, it has never been more important for pensioners to maximise their income in retirement. Pension Credit could provide valuable financial support.
What is Pension Credit?
Pension Credit is a benefit paid by the Department for Work and Pensions (DWP) to people who are over state pension age.
State pension age is currently 66 in the UK, but is set to increase in the future.
It is paid separately from the State Pension and can provide weekly support.
READ MORE: Martin Lewis predicts 'change' from Rishi Sunak as he slams 'stupid' scheme
How much is it?
The amount of Pension Credit someone can receive depends on how much they currently earn.
There are two elements to Pension Credit: Guarantee Credit and Savings Credit.
Guarantee Credit provides a boost for people who have income of less than £177.10 per week, or £270.30 per week for couples.
DON'T MISS
TV licence: Millions don’t need to pay for a TV licence - could you be one of them? [INSIGHT]
Rishi Sunak extends Warm Home Discount Scheme - more Britons to get money off energy bills [ALERT]
State pension scandal: WASPI women expect 'maximum compensation' after MPs' report [UPDATE]
Their income would then be topped up to those amounts.
Savings Credit is available to people who have more income, and can pay up to £14.04 a week for a single pensioner, or £15.71 for those in a couple.
As well as increased income, Pension Credit allows pensioners to qualify for additional benefits which could save them money.
Pension Credit claimants could be eligible for the following benefits:
- Housing Benefit
- Support for Mortgage Interest
- Council Tax Reduction
- Free TV licence for over 75s
- Help with NHS dental treatment, glasses and transport costs for hospital appointments
- Help with heating costs
Who is eligible?
Applicants will have their income assessed to determine whether they are eligible for any help through Pension Credit, and whether that would be through Guarantee or Savings Credit.
Income includes:
- State pension
- Other pensions
- Earnings from employment and self-employment
- Most social security benefits, such as Carer’s Allowance
How to claim
Britons can apply online via the Government website, or alternatively call the Pension Credit claim line on 0800 99 1234.
It is also possible to apply by post.
Applications can be started up to four months before reaching state pension age and can also be backdated by three months.