‘Time is running out’ to claim £299 living expenses – hours left to take action
THOUSANDS of households have just hours left to claim the final £299 living expenses payment.
More than 1.4 million retirees receive a pension credit, making them eligible for the free money.
But there are still 850,000 retirees who are eligible for the benefit and are not claiming it.
This means they risk missing out on the £299 payment, which was paid out on February 6.
Helen Morrissey, head of pensions analysis at Hargreaves Lansdown, said: ‘Time is running out for pensioners to apply for a pension credit and qualify for a £299 cost of living payment.
‘These payments provided a huge boost to people’s tight budgets last year, but the clock is ticking to qualify for the final payment.
“People have until March 5 to apply for Pension Credit and if successful they will receive this extra boost on top of the benefit.”
To receive the first payment, you must have received at least one of the seven benefits, including pension credits, between November 13 and December 12.
It doesn’t matter if you only qualified for one day. As long as this day fell within the qualifying period, you will be paid your living expenses.
The same rule applies to new pension credit applications, which can be applied for up to three months retroactively.
This means thousands more people could qualify for the money by applying for the benefit now and before March 5.
This ensures that any payments can be made backdated and within the qualifying period for the £299 living expenses payment.
If you submit your claim later, the DWP may not be able to process your claim in time.
And if you miss the deadline, your claim won’t extend all the way back to the qualifying period, meaning you’ll miss out on the money.
Helen said: “Pension Credit plays an important role in supplementing the incomes of the poorest pensioners, yet it is still vastly underclaimed, with only 63% of eligible families actually claiming it.
‘In addition to the income increase and cost of living payment, this opens the door to further support such as help with NHS costs, heating costs and council tax.
“There is also a free TV license for people over 75.
“Making a claim today can have a huge impact on your standard of living in retirement, so it is very important to make a claim if you think you or a loved one may qualify.”
Are you missing out on benefits?
You can use a benefit calculator to check whether you are not missing out on money you are entitled to
Charity The Turn2Us benefits calculator figuring out what you could get.
Upright free calculator determines whether you are eligible for various benefits, tax credits and Universal Credit.
MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto’s data.
You can use The Policy in Practice calculator to determine which benefits you can receive and how much money you have left every month after paying your housing costs.
Exactly what you are entitled to will not be clear until you file a claim, but calculators can indicate what you may be eligible for.
Who is eligible for a pension discount?
Pension credit 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 I 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 can get an extra €76.40 per week. If you care for another adult, you can get an extra €42.75 per week.
How do I apply for a pension discount?
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 three 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.
What else can you get on the Pension Credit?
Pension Credit is known as a ‘gateway’ benefit as it offers a host of other discounts and freebies.
If you claim it, you may be able to get help with housing benefit, if you have a rental property, and a discount on council tax.
This also makes you eligible for living expenses payments and the Warm Home Discount scheme.
If you are 75 years or older, you can also get a free TV license. You can claim your free copy by calling 0300 790 6117.
You can also register online via the TV Licensing website.