People of state pension age could get a huge boost to their income through Pension Credit as well as an extra £300 cost of living payment.
The benefit tops up a person’s income, providing £3,500 a year on average, and people may want to put in their claim soon so they can also claim the cost of living payment.
People who claim Pension Credit can get the cost of living payment if they were claiming the benefit during the qualifying period from August 17 to September 17. A claim can be backdated by up to three months, so people can apply now and still get the extra payment.
Tom Selby, head of retirement policy at AJ Bell, said: “Low-income pensioners are often acutely affected by the drop in temperatures in winter, particularly where mobility is an issue, which can mean leaving the house is a struggle.
“Anyone entitled to Pension Credit for even one day from 18 August to 17 September will benefit from the full £300 cost-of-living payment, but crucially it is up to the individual to make the claim.”
People on the benefit will also be eligible for another cost of living payment, worth £299, that is going out in spring 2024 – the exact dates have yet to be confirmed.
A person can check if they qualify for Pension Credit using the online calculator tool on the Government website or by calling the Pension Credit hotline.
Pension Credit tops up a single claimant’s income up to £201.05 a week and up to £306.85 a week for couples.
Claimants can get extra payments through the benefit depending on their situation such as if they have a severe disability or if they care for another adult.
The benefit can also entitles a person to a council tax reduction, Housing Benefit if they rent their property and Support for Mortgage Interest if a person owns their home.
People on the benefit will also receive Cold Weather Payments. Claimants aged over 75 can also get a free TV licence, saving them £159 a year.
A person can apply for Pension Credit even if they have chosen to defer receiving their state pension.
An individual’s savings and investments may affect their claim. For those with £10,000 or more in savings, each £500 over this amount is counted as £1 a week in income.
A person can make a claim for Pension Credit online through the Government website.
For the latest personal finance news, follow us on Twitter at @ExpressMoney_.
