Millions missing out on pension top-up payments worth £9,600 a year – check if you can claim
MILLIONS of Brits are missing out on average pension top-up payments worth up to £9,600 a year.
It comes as Independent Age warns that 2.1million elderly Brits are living in poverty and missing out on thousands of pounds of extra government support.
On average, callers to the charity‘s helpline are missing out on £4,000 of support per year.
Older people living in poverty can get extra help through several extra benefits including pension credit and attendance allowance.
Thabani Sithole, 73, a former nurse who lives in London and had to retire due to ill health, feared she was going to lose her home.
Before speaking to Independent Age, her savings had dwindled and her state pension wasn’t enough to cover the bills.
But Independent Age advisers found that she was eligible for support including pension credit, attendance allowance and council tax reduction which amounted to £800 extra per month – or £9,600 a year.
Similarly, Stephen, an 80-year-old ex-farmer who lives in Wiltshire, started to struggle with the cost of living after discovering his private pension was only worth £90 a month.
After speaking to Independent Age, Stephen and his wife now receive an extra almost £7,000 a year in pension credit, council tax reduction and attendance allowance.
Over 2.7million pensioners are missing out on council tax support and a further 1.1million could be claiming attendance allowance but don’t, according to the latest figures by Policy in Practice.
Plus, 850,00 retirees over the state pension age aren’t claiming pension credit even though they’re eligible.
You can get free and confidential advice by calling Independent Age’s helpline on 0800 319 6789.
We’ve explained how much you can boost your pension income with the three benefits below.
What is pension credit?
Pension credit is available for people who are over the state pension age, and who live in England, Scotland or Wales.
To qualify, you’ll need to have a weekly income of less than £201.05 for single people or £306.85 for couples.
Your income is worked out taking into account various elements including:
- Your state pension
- Any other pensions you have saved, for instance, workplace or private pension savings
- Most social security benefits, for example, carer’s allowance
- Any savings or investments worth over £10,000
- Earnings from a job
But the calculation does not include any money you get from claiming:
- Attendance allowance
- Disability living allowance
- Personal independence payment
- Housing benefit
- Council tax reduction
There are two parts to the benefit and pensioners can be eligible for one or both parts – here are the current rates for the tax year:
- Guarantee credit – tops up your weekly income to a guaranteed minimum level. This is £201.05 a week if you’re single and £306.85 a week for married couples.
- Savings credit – provides extra money if you’ve saved money towards retirement. You can get an extra £15.94 a week for a single person or £17.84 a week for a married couple.
You may also get additional payments if you are disabled, have caring responsibilities or have to pay certain housing costs.
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 ringing the pension credit claim line on 0800 99 1234.
What is attendance allowance?
Attendance allowance helps with extra costs if you have a disability severe enough that you need someone to help look after you.
It’s paid at two different rates and how much you get depends on the level of care that you need because of your disability.
You can get attendance allowance as long as you’ve reached state pension age (66) and the following applies:
- You have a physical or mental disability or both
- Your disability is severe enough for you to need help caring for yourself
- You have needed that help for at least six months (unless you’re terminally ill)
There are 56 categories of medical conditions you can claim with, including heart disease, Parkinson’s disease and diabetes.
You are also entitled if a medical professional has said you might have 12 months or less to live.
The lower rate is worth £68.10 a week, while the higher rate comes in at £101.75 a week.
If you receive the lower rate, you are entitled to frequent help or constant supervision during the day, or supervision at night.
On the higher rate, you will get help or supervision throughout the day and night.
To apply, you’ll need to download the attendance allowance form on the Gov.UK website and then send it by post.
It should be sent to the following address: Attendance Allowance Unit, Mail Handling Site A, Wolverhampton WV98 2AD.
If you’re unable to print the form yourself, you can call the attendance allowance helpline on 0800 731 0122 and ask for a copy to be sent to you.
Council tax reduction
In England and Wales, councils offer residents council tax reductions based on their own criteria, but you might be able to get a 100% discount depending on your circumstances.
Pensioners can usually get a council tax discount and those who live alone qualify for a 25% reduction.
Those on the guarantee credit element of pension credit can usually get 100% off.
If you don’t claim pension credit and don’t live alone you could still get help if you have a low income and less than £16,000 in savings.
You can apply for a reduction on the government’s website.
You’ll need to have your national insurance number, bank statements and a passport or driving licence to hand.
If there are other adults in the household, you might need the same information for them too.