The Department for Work and Pensions (DWP) has issued an urgent warning that there is only one week left to qualify for the UK Government's £650 cost of living payment.
For people of State Pension age, all new applications for Pension Credit must be submitted before August 18 in order to be eligible for the money. Pension Credit is a benefit available for people over the State Pension age on a low income.
The DWP stated: “To qualify for the first cost of living payment, worth £326, a person must be entitled to a payment of Pension Credit on any day from April 26 to May 25, 2022.
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"However, new claims for Pension Credit can be backdated for a maximum of three months provided the entitlement conditions are met throughout the three months. To guarantee that 25 May will be included in the first Pension Credit payment for pensioners wishing to backdate a new claim, we are advising that claims should be made as soon as possible and no later than 18 August."
It added: “We would like to ensure everyone who is eligible for Pension Credit, claims it as soon as possible so they do not miss out on the cost of living payment. Pensioners, or friends or relatives on their behalf, can use this calculator to check if they qualify.”
Those who qualify for Pension Credit may also be eligible for the £300 pensioner cost of living payment and the £150 disability cost of living payment. The former will be attached to Winter Fuel Payments later this year while the latter will be paid in September.
Approximately one in three people who receive the State Pension are eligible for Pension Credit but may not be aware. As reported by the Daily Record, here is everything you need to know about the benefit.
What is Pension Credit?
Approximately 1.4 million people throughout Scotland and the UK currently receive Pension Credit. The benefit provides financial assistance to those who have reached the State Pension age and are on a low income.
According to the DWP, hundreds of thousands may be missing out on the money, as well as the additional discounts it provides.
Other help if you get Pension Credit
If you claim Pension Credit, you may also receive:
- Housing Benefit if you rent the property you live in
- Support for Mortgage Interest if you own the property you live in
- Council Tax discount
- Free TV licence if you are aged 75 or over
- Help with NHS dental treatment, glasses and transport costs for hospital appointments
- Help with your heating costs through the Warm Home Discount Scheme
- A discount on the Royal Mail redirection service if you are moving house
Mixed aged older couples and Pension Credit
After the law was amended in May 2019, couples in which one person is over the State Pension age and the other is below it are unable to claim Pension Credit or pension age Housing Benefit until they have both reached State Pension age.
Before this DWP change, a mixed age couple could be eligible to claim the more generous State Pension age benefit.
How to use the Pension Credit calculator
In order to use the calculator, you will have to have information regarding you and your partner's (if you have one):
Earnings, benefits and pensions
Savings and investments
You will be given a number of questions that ask about the following:
- Your date of birth
- Your residential status
- Where in the UK you live
- Whether you are registered blind
- Which benefits you currently receive
- How much you receive each week for any benefits you get
- Whether someone is paid Carer’s Allowance to look after you
- How much you get each week from pensions - State Pension, private and work pensions
- Any employment earnings
- Any savings, investments or bonds you have
After you have completed the questions, the calculator will display how much money you may be entitled to per week.
You will then be given a link to the application page where you will be told exactly how much you will receive, as well as what other support you will have access to.
You can find the Pension Credit calculator here.
Who cannot use the Pension Credit calculator?
You are unable to make use of the tool if either you or your partner:
Are deferring your State Pension
Own more than one property
Are self employed
Have housing costs (such as service charges or Crown Tenant rent) which are neither mortgage repayments nor rent covered by Housing Benefit
How to make a claim
You are permitted to start an application for Pension Credit four months before you officially hit State Pension age. You can make a claim any time after reaching State Pension age but the claim can only be backdated for three months.
In order to make a claim, you will have to have:
Your National Insurance number
Information about your income, savings and investments
Your bank account details, if you’re applying by phone or by post
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