I’m £1,000s better off after claiming little-known ‘no brainer’ benefit – and I get a free TV licence too
A PENSIONER is thousands of pounds better off after discovering a little-known benefit – and now she “doesn’t know how she would survive” without it.
Sheila Correll, 82, lives alone in Horncastle, Lincolnshire, and struggles to get by every week with the sky-high cost of living.
But her income is now hugely boosted by Pension Credit – a Government benefit which tops up your income to a minimum amount.
Claiming it opens up a host of other perks too, including cost of living payments, council tax discounts and free TV licences.
However the latest data from the Government reveals around 880,000 eligible households are missing out on the benefit.
Helen Morrisey, head of retirement analysis at Hargreaves Lansdown, said: “Pension Credit remains massively under-claimed.
“Recent data shows only around 63% of those who could claim it actually are.
“This means an estimated 880,000 families are missing out, with up to £2.1 billion going unclaimed.
“On average, this amounts to around £2,200 per year for each family entitled to receive Pension Credit who did not claim the benefit.”
Sheila, who also has no family, first started claiming Pension Credit 15 years ago after a worker from the Department for Work and Pensions (DWP) came to her then home in Middlesbrough and told her she was eligible.
She currently receives around £20 extra a week on top of her state pension, which is worth around £201 this year – with a total weekly income is £221 a week.
The money is put towards paying for broadband, which costs £5 a week, home insurance at £4 a week, water bills, which cost £2.50 a week, electricity and gas at around £6 a week, and food, which she says has shot up in recent years, now costing around £100 a week.
“I’ve already cut back on everything, and I keep the heating off for as long as possible,” Sheila said.
“The Government talks about inflation coming down, but the price of food has doubled or tripled or more.”
Sheila described her situation as “very uncomfortable” and said she has to be extremely careful with her money.
So, she doesn’t know how she would have coped without the extra boost from Pension Credit over the last 15 years.
“Without Pension Credit, I don’t know how I’d survive,” she said.
“And it’s all the other benefits that it unlocks like the (free) TV licence and help with council tax.”
On top of the free TV licence, which you can claim from the age of 75 if you get Pension Credit, Sheila also has her council tax wiped, and she qualifies for the Warm Home Discount through her Pension Credit.
This payment is a one-off discount applied to your electricity bills every year, and is currently worth £150.
Sheila is also eligible for a discount on her water bill through the WaterSure scheme.
The free TV licence in particular Sheila said was a massive help, as it has helped to stave off her feelings of loneliness.
“I’ve been claiming it for about seven years. It’s essential (for me) because it’s the only entertainment I can afford.”
Sheila branded claiming Pension Credit a “no-brainer” and said everyone who is eligible should be claiming it.
“There’s still a lot of people out there that don’t know about it,” she said.
“People think ‘I better not claim it’, it’s not straightforward – but they should definitely apply for it.”
What is Pension Credit and who is eligible?
Pension Credit is a benefit for those over the state pension age – currently 66 – and with an income worth less than £218.15 a week for an individual and £332.95 a week for a couple.
It’s made up of two parts. Some people qualify for both parts while others receive just one of two parts.
These are:
Guarantee credit – this is the main part of Pension Credit which tops up your weekly income to a minimum guaranteed level.
For the current financial year, this minimum level is £218.15 a week if you are single and £332.95 a week if you are in a couple.
Savings credit – you qualify for this if you reached state pension age before April 2016 and have money stashed away in a personal or workplace pension.
For the current financial year, it is worth £17.01 a week if you are single and £19.04 if you have a partner.
You can also get additional Pension Credit if you have a disability, caring responsibilities or have to pay certain housing costs such as mortgage interest payments.
For example, if you receive Attendance Allowance, Disability Living Allowance, Personal Independence Payment, the Armed Forces Independence Payment or the Adult Disability Payment, you could qualify for an extra £81.50 a week.
Meanwhile, if you receive Carer’s Allowance or get a Care Support Payment, you can get an extra £45.60 a week.
How do I apply and how will I be paid?
You can start your application up to four months before you reach state pension age.
You can make an application on the Government website or by ringing the Pension Credit claim line on 0800 99 1234.
You can get a friend or family member to ring for you, but you’ll need to be with them when they do.
You’ll need the following information about you and your partner if you have one:
- National Insurance number
- Information about any income, savings and investments you have
- Information about your income, savings and investments on the date you want to backdate your application to (usually three months ago or the date you reached state pension age)
You can also get help with the application process through charities and non-profit organisations such as Independent Age and Age UK.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories