Martin Lewis warned millions of households are missing out on vital benefit support – even if their income is £50,000 a year, in tonight’s ITV Money show.
“Millions of you are missing out on support you are entitled to,” the consumer expert told viewers on Thursday night’s live benefit special.
He warned at least one million extra people could get Universal Credit – a benefit aimed those who are unemployed or working on lower incomes, usually aged between 18 and the state pension age.
“The amount you get is based on your household income, your childcare costs, your housing costs and it could be up to £1,900 a month in very extreme circumstances,” Mr Lewis added.
However, the amount you get depends on your income, so for example if you or your partner have over £6,000 in savings, your payments will drop. Anyone with over £16,000 won’t get anything.
So who qualifies? Martin said his ‘rule of thumb’ is to apply if you have a family income of £30,000.
“If that’s you, I would absolutely check if you’re eligible for Universal Credit. This is not guaranteed but it’s worth a 10 minute check.
“Some single parents could qualify for it even if their income is up to £50,000,” he added.
Households can use entitledto.co.uk’s online calculator to check or visit Citizens Advice. We have a handy benefits calculator below that you can use to check your entitlement.
Importantly, if you do qualify for Universal Credit, you will also benefit from the government’s Help to Save account – which pays 50% back on up to £50 savings a month.
Extra warning for 3million claimants
Martin issued a separate warning to people in receipt of 'legacy' benefits', such as tax credits, income support, housing benefit, jobseekers allowance and employment and support allowance.
"Over the next few years you will be migrated over to Universal Credit, but should you ask to be on it now?
"You may find you get more support by switching over if you work and pay rent, especially in a city, or you are a relatively high earner that gets benefits.
"Use a benefit calculator but remember, if you ask to be put on to Universal Credit you can't go back even if you find out you will be getting less. So if the calculator shows you could claim it, get one-on-one advice on it, you cannot ask the government to calculate it.
"Also beware of deductions on Universal Credit. That's when certain debts, such as council tax, rent and energy are taken off your standard allowance. That means even if you're getting more on Universal Credit it may not be worth moving off your old benefits because of those deductions.
"Lastly, Universal Credit is paid monthly, not weekly, which means you may need to budget more."
Boost for state pensioners
“Over one million people at state pension age are missing out on pension credits,” Martin said.
”If you have savings you might still be eligible – it applies if your weekly income is below £177 and you’re single, or £270 if you are a couple.”
Importantly, pensions credit also gets you a free TV Licence, a council tax discount and potentially a warm home discount. See more on the benefit, here.
“It’s also important to look at your National Insurance credits,” Martin concluded.
“The more of these you get, the bigger your state pension.
“If you are a carer on benefits and working 20 hours a week, you could get extra National Insurance credits.
“The same applies if you are looking after a grandchild in the form of grandparents credit if the grandparent is still below the state pension age.
If you don’t work, you may want to consider child benefits too – whether you qualify for the benefit or not, it’s a boost to your National Insurance record and therefore your pension.
