What is pension credit and are you eligible to claim?

The government has announced an awareness drive aimed at boosting take up of pension credit. The week of action is due to take place in September and there’s a lot riding on it given that previous attempts to boost take up haven’t been hugely successful.

It remains a much underclaimed benefit with only around two-thirds of those who are eligible for it actually claiming it. However, the recent announcement that winter fuel payments will be restricted to those on means tested benefits such as pension credit should prompt more people to take a closer look.

After years of sky-high heating costs many pensioners will have relied on the winter fuel payment and its withdrawal leaves a gap worth hundreds of pounds in the budgets of those not currently on pension credit. With the energy price cap due to rise by 9.5% in the coming months many pensioners could find themselves in an impossible position in winter without the extra support.

What is pension credit?

Pension credit tops up your weekly income to £218.15 if you’re single or your joint weekly income to £332.95 if you have a partner. If your income is higher, you might still be eligible for pension credit if you have a disability, you care for someone, you have savings or you have housing costs.

It also acts as a valuable gateway to further benefits such as a free TV licence for the over-75s as well as help with council tax and NHS costs such as glasses.

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However, the government faces an uphill battle to tackle the myths that prevent people from coming forward and claiming. These include thinking you can’t claim pension credit if you have savings or own your own home.

Such myths stand in the way of pensioners claiming vital help and bring unnecessary financial stress. If you think yourself or a loved one may qualify for pension credit, then it’s well worth checking as you could give your income a significant boost.

The deadline to apply for pension credit and receive this year’s winter fuel payment is 21 December.

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As yet, we don’t know much more about how the government will reach potential claimants other than that they will be working with local authorities and charities.

However, awareness activity must continue well beyond the planned week of action as we will need a sustained effort over a longer time period to really engage people and make sure they get what they are entitled to.

How to apply for pension credit

• You can apply online with the information you need available on the gov.uk website.

• You can also apply by phone on 0800 99 1234 or by post.

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