Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Chronicle Live
Chronicle Live
National
David Bentley & Sophie Finnegan

Pension claimants urged to get five top-up funds before £500 April income drop

Those on State Pension have been urged to claim five top-ups to make up for the gap left in their income thanks to soaring inflation.

The Department for Work and Pensions (DWP) said anyone on State Pension should claim the top-ups which will increase payments by 3.1 per cent from April.

However, at that point inflation is expected to be 7 per cent or even higher therefore, claimants said the rise in pensions falls way below the soaring cost of living.

Go here for the latest news on the cost of living

Campaigners from Silver Voices petitioned for a £500 lump sum to fill the gap but the Government has rejected the suggestion, Birmingham Live reports.

Responding to a petition, the DWP said: "The Government has no plans to increase the State Pension by £500 a year as an emergency measure. We have never paid our pensioners more. This year, we will spend over £129 billion on the State Pension and benefits for pensioners in Great Britain.

"From April, the full yearly amount of the basic State Pension will be around £720 more in 2022/23 than if it had been up-rated by prices since 2010. That’s a rise of over £2,300 in cash terms. Over the last two years, we have delivered an increase of more than 5.6 per cent in the basic and new State Pension."

The DWP says the triple lock system normally used to work out State Pension rises will be reinstated for the next financial year and has this year urged pensioners to take advantage of five possible income top-ups to help deal with the cost of living crisis.

1. Pension Credit

Those on State Pension are being urged to claim five top-ups (PA)

Around 1.4 million eligible pensioners across Great Britain already receive some £5 billion in Pension Credit, which tops up their retirement income.

However, according to the latest data, 958,000 people are missing out on Pension Credit, with £1.8 billion unclaimed.

Based on those figures, the average person is losing out on £1,878 a year. But, in fact, Pension Credit can be much higher, with the average amount received at present being £3,000 a year.

Pension Credit is described as a gateway benefit because it allows access to other financial help such as support with housing costs, council tax, heating bills, and NHS charges as well as a free TV licence for those over 75.

2. Winter Fuel Payment

The Winter Fuel Payment provides pensioners with support for their energy bills over winter and is worth £2 billion every year.

The Department for Work and Pensions said 11.4 million people received the payment in the previous winter period.

It pays £200 for households with someone who has reached State Pension age and is under age 80, or £300 for households with someone aged 80 and over.

The money is paid automatically to people who receive the State Pension or one of these four benefits: Pension Credit, Income Support, income-based Jobseeker’s Allowance (JSA), or income-related Employment and Support Allowance (ESA).

Others - such as those on Housing Benefit, Council Tax Reduction, Child Benefit or Universal Credit, or who get a UK State Pension but live in Switzerland or an EEA country, have to manually put in a claim by contacting the Winter Fuel Payment Centre on 0800 731 0160.

3. Cold Weather Payments

Cold Weather Payments give further help to vulnerable people in receipt of certain income-related benefits, including Pension Credit, to meet additional heating costs during periods of unseasonably cold weather between November 1 and March 31.

During the previous period, it ran - November 2020 to March 31, 2021 - almost £100 million was paid out in total, the department said.

Every year £25 is available for every week of severe cold weather between those dates.

Cold Weather Payments are triggered when the average temperature reaches or is forecast to be, zero degrees celsius or below over seven consecutive days at the weather station linked to your area.

After each period of very cold weather in your area, you should get a payment within 14 working days. It’s paid into the same bank or building society account as your other Government payments.

People on Pension Credit are among those who are eligible for Cold Weather Payments, along with people on Income Support, income-based Jobseeker’s Allowance (JSA), Income-related Employment and Support Allowance (ESA), or Support for Mortgage Interest who are in receipt of a pensioner premium.

Check if you can get a payment in your area and if you have not received it, tell the Pension Service or local job centre.

4. Warm Home Discount Scheme

The Warm Home Discount Scheme knocks £140 off your electricity bill if you are on a low income or in receipt of specific benefits, and is set to be increased to £150 from 2022.

Elderly people on low incomes who receive the Guarantee Credit element of Pension Credit - known as the core group - automatically receive the discount.

Others in what's called the broader group have to apply to their energy supplier in order to access the money. The broader group typically means you will get this discount if you are:

  • in receipt of the Savings Credit element of Pension Credit
  • in receipt of one of the following means-tested eligible benefits: Universal Credit, Income Support, income-based Jobseeker's Allowance, or income-related Employment and Support Allowance.
  • are a customer with a gross annual household income of less than £16,190 and the account holder is living with a mental or physical disability or illness, or there is a vulnerability within the home (children living in the house aged 5 or under) or of pensionable age.
  • are a customer with a gross annual household income of less than £16,190 and spend 10 per cent or more of household income on energy bills to heat the property.

Anyone who believes they are eligible should apply as soon as they can, as the scheme is operated on a first-come, first-served basis.

There is a fixed pot of money to be distributed and qualifying applicants will have their rebates paid by March 31, 2022.

Chancellor Rishi Sunak recently confirmed plans to expand eligibility for the Warm Home Discount by almost a third. Three million vulnerable households will now benefit from the scheme.

The Government said: "We have already consulted on expanding the Warm Homes Discount by almost a third from 2.2 million to 3 million vulnerable households and increasing the rebate value to £150 from £140 each year, increasing the cost from £350 million to £475 million.

"We also consulted on expanding the eligibility to include all means-tested benefit recipients, bringing in those in receipt of Working Tax Credits and Pension Credit Savings Credit, and making the issue of the rebate more automatic for those on working-age benefits who are living in the least energy-efficient homes."

5. Household Support Fund

A £500 million Household Support Fund was introduced last November to assist vulnerable households across the country this winter.

In England, the £421 million fund has provided targeted support through local authorities to help with the cost of food, utilities and wider essentials.

The Devolved Authorities received the remaining £79 million through the Barnett Formula to set up their own schemes.

For the latest local news in your area direct to your inbox every day, go here to sign up to our free newsletter

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.