Exact date thousands will be asked to transfer benefits – or risk losing £1,000

THOUSANDS of households will be asked to transfer their benefits in the coming months.

If you refuse, you could be missing out on £1,000 in cash to help with essential bills and general living costs.

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The government plans to move all two million claimants onto Universal Credit (UC) or pension credits by the end of March 2025, through a process known as managed migration.

The process started in May last year after a successful pilot in July 2019.

More than two million people are still on old-fashioned benefits, but the government plans to switch them all to Universal Credit or pension credit by March 2025.

Eligible households will be contacted with letters in the post explaining how they can make the switch from tax credits to Universal Credit.

Once you receive a letter, you have three months to switch. Otherwise, you may lose your current benefits.

But the Government has now confirmed when it will ask pensioners who cannot claim Universal Credit to switch from tax benefits to pension credits.

Pension credit is extra money for people who have reached state pension age and have a low income.

It supplements your income to at least €201.35 per week if you live alone and €306.85 if you have a partner.

Viscount Younger of Leckie said in a new written statement on Thursday, January 24: “From August we will also be contacting those claiming tax benefits who have reached state pension age, asking households to apply for Universal Credit or Pension Credit, depending on their circumstances.”

In most cases these will be individuals better off after switching from old benefits to Universal Credit.

But 300,000 people could be worse off and not allowed to move until they are told to so their payments are protected, otherwise they could lose cash.

If an individual's Universal Credit or Pension Credit payout is less than their old benefits entitlement, he or she is usually entitled to an additional payment known as Transitional Protection.

This means that their entitlement to Universal Credit or pension credit will be the same as their entitlement to an old benefit when they move.

Retirees can also freely switch to a pension credit from tax credits at any time, but it is best to check before doing so as you will not receive transition protection if you act without your managed migration letter.

An online benefits calculator can help you understand how your payments will change after the switch.

These are free and easy to use from charities such as Turn2Us And Entitled toand it is also worth asking them for advice.

Who is eligible for a pension discount?

It is available to people who have reached state pension age and live in England, Scotland or Wales.

This currently increases to 66 years for both men and women.

Previously, couples where one person had reached state pension age could claim retirement age, but new rules now mean that both people in a couple must be over retirement age to apply.

This means that if you are single and live with a partner who is younger than the state pension age, you are no longer eligible.

But if you are already receiving a pension under the old system, this will not stop unless your circumstances change.

To qualify, you must have a weekly income of less than €201.05 for singles or €306.85 for couples.

When calculating your income, various elements are taken into account, including:

• Your state pension
• Any other pensions you have saved, for example pension savings at the workplace or privately
• Most social security benefits, for example the informal care allowance
• All savings or investments worth more than € 10,000
• Income from a job

The calculation does not include:

• Attendance allowance
• Christmas bonus
• Housing benefit for the disabled
• Personal independence allowance
• Rent subsidy
• Municipal tax reduction

If your income is too high to get pension credit, you may still be able to get some savings pension credit, so it's worth checking.

How much can you get in pension credit?

The benefit consists of two parts and retirees may be eligible for one or both parts. These are the current rates for the tax year:

• Guarantee credit – supplements your weekly income to a guaranteed minimum level. This is £201.05 per week if you are single and £306.85 per week for married couples.
• Savings credit – offers extra money if you have saved money for your pension. You can get an extra £15.94 per week for a single person or £17.84 per week for a married couple.

You can also receive an additional pension discount if you are disabled, have caring responsibilities or have to pay certain housing costs, such as mortgage interest.

For example, you could get €61.88 per week or €72.31 per week for each child or young person you are 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 per week, or if you are caring for another adult you could get an extra €42.75 per week.

It is important to note that benefits will increase by 6.7% from April, in line with the consumer price index (CPI) inflation level for September 2023.

It means that pension payments will rise from £201.05 per week to £218.15 or for couples, from £306.85 to £332.95.

The savings portion will also be increased from €15.94 per week to £17.01 or for couples, from £17.84 to £19.04.

How do I register?

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 calling the pension credit line on 0800 99 1234.

You can ask a friend or family member to make the call for you, but you must be with them when they do so.

You will need the following information about you and your partner, if you have it:

• National insurance number
• Information about any income, savings and investments you have
• Information about your income, savings and investments on the date on which you want to submit your retroactive application (usually 3 months ago or the date on which you reached state pension age)

If you submit an application after you have reached retirement age, you can submit your application retroactively for up to three months.

How do I get paid?

Your benefits are usually paid into an account, such as a bank account.

They are usually paid every four weeks.

When you make a claim you will be asked for details of your bank, building society or credit union.

But if you're having trouble opening or managing an account, you may be able to claim in another way.