A whopping £1.7 billion is waiting to be claimed by thousands of Brits who haven’t yet staked their claim.
According to government figures, Pension Credit alone can provide retirees with an average pension top-up of £3,900 a year, along with numerous other benefits, freebies, and discounts. It’s believed that 850,000 people qualify for the Department for Work and Pension benefit but aren’t claiming it.
The lengthy 200-question application form and lack of awareness about eligibility are common reasons for this. Finance expert at Ocean Finance Fiona Peake has delved into the issue, highlighting that many could be needlessly scrimping and saving to pay bills when help is readily available.
To qualify for Pension Credit, there’s a limit to how much income and savings you have, a criteria which often confuses people trying to calculate it for the first time.
Navigating the complexities of income and pension calculations can be overwhelming, but the government’s online tool offers a quick fix.
The Pension Credit calculator is designed to swiftly inform users about their potential eligibility and provide an estimate of weekly benefits.
It’s a straightforward process that only requires basic information such as birth dates, state pension amounts, and other benefit entitlements. For those with non-weekly pay, there’s an additional calculator to convert earnings into a weekly sum.
However, completing the application is still necessary to receive Pension Credit. With the cost-of-living crisis biting, Fiona stressed the importance of using the tool: “The cost-of-living crisis has hit older people hard. Aside from the immediate financial relief, claiming Pension Credit can help protect you against rising costs. “
She added: “With the energy price cap increasing once again at the start of January and food inflation remaining stubbornly high, claiming what you’re entitled to is a smart move. If you think you might qualify – or know someone who could – take five minutes to check.”
Experts recommend using benefit calculators provided by charities such as Turn2Us and Age UK, which assess your eligibility for benefits based on your income, disabilities, age, and caring responsibilities.
The specialist noted: “Many people assume that claiming Pension Credit is a complicated process or that they won’t qualify because they have savings or a small private pension. In reality, it’s a straightforward process, and the rules are more generous than you might think. It’s always worth checking; even if you only receive a small amount of Pension Credit, it could unlock other support worth thousands of pounds.”
Pension Credit is considered a “gateway benefit” as it also makes you eligible for additional support, including council tax reductions, cold weather payments, free TV licences for those over 75, and Winter Fuel Payments, which, according to Ocean Finance, could be worth more than the full £3,900 Pension Credit offers.
