Pensioners could save £3k a year as Martin Lewis says 900,000 ‘miss out’ | Retirement | Finance

Martin Lewis has encouraged pensioners to check if they could be “missing out” on £3,000 a year. According to the finance expert, almost one million retirees in the UK are not claiming cash support they’re eligible for.

In an update on his Money Saving Expert (MSE) website, Martin shared some advice for pensioners on a low income. These people could qualify for Pension Credit. Not only does this benefit top-up your income, it also unlocks access to other support, including a free TV licence, and discounts on energy bills. Martin shared feedback from a member of the public who followed his recommendations.

Martin said: “Many of your success emails make me smile, but this recent one below had me beaming. I’ve long waged a communications battle against the hideously underclaimed and overcomplex Pension Credit system.

“Terribly, this crucial top-up for state pensioners on the lowest incomes is still being missed out on, using the Government’s own numbers, by over 900,000 of the 2.3m eligible.

“And as it’s just been increased for the new tax year, even more people are now eligible, some who weren’t before. So here’s some inspiration, showing the power of Pension Credit as a gateway benefit – even if it isn’t worth that much itself…”

One MSE reader explained how she managed to save £3,000 a year by applying for Pension Credit. “By a direct result of Martin and the Government impressing on the older generation to apply for Pension Credit, I have saved almost £3,000 in the last year,” she said.

“My husband and I are retired, 83 and 76, with a State Pension. I filled out the necessary forms and was awarded Pension Credit of £6.10/week, which opened up benefits. Due to the application being backdated to when I applied, I did not have any Council Tax to pay this year – a saving of over £2,500/year.

“Add to this a free TV licence, Warm Home Discount, and a lower water bill. This has resulted in a saving of over £3,000 a year. This has made such a difference to my husband and me, with less worry over the cost of living. I am still budgeting very carefully, but with less pressure and anxiety.”

Who can claim Pension Credit?

There are two types of Pension Credit – Guarantee Credit and Savings Credit.

To qualify for Guarantee Pension Credit, you must be State Pension age (66). Your weekly income will need to be less than the minimum amount the UK Government says you need to live on.

This is £238 for a single person and £363.25 for a couple – this amount could be higher if you’re disabled, a carer or have certain housing costs.

You can only get Savings Credit if:

• You reached State Pension age before April 6, 2016, or you have a partner who reached State Pension age before this date and was already receiving it
• You have qualifying income of at least £208.07 a week for a single person and £329.75 a week for a couple

How much could you receive from DWP?

Guarantee Credit tops up your weekly income to:

• £238 for a single person
• £363.25 for a couple (married, in a civil partnership or cohabiting)

You might be able to get more than this if you’re disabled or a carer, or you have certain housing costs.

Savings Credit can give you up to:

• £17.96 a week for a single person
• £20.10 a week for a couple (married, in a civil partnership or cohabiting)

The exact amount you’ll get depends on your income and savings. Your income includes assumed income from savings and capital over £10,000.

How to check eligibility for Pension Credit

Older people, or friends and family, can quickly check their eligibility and get an estimate of what they may receive by using the online Pension Credit calculator on GOV.UK here.

Alternatively, pensioners can contact the Pension Credit helpline directly to make a claim on 0800 99 1234 – lines are open 8am to 6pm, Monday to Friday.