Two pensioners managed to save thousands of pounds over the past year by heeding advice from Martin Lewis and claiming a benefit that numerous people overlook. While receiving just a modest weekly sum, their application unlocked access to various additional forms of support, including having their council tax bill reduced to nothing.
Pension Credit remains amongst the most under-utilised benefits available through the Department for Work and Pensions. Its main function is to supplement the income of people over state pension age who have lower earnings. However, many people incorrectly assume they don’t qualify or conclude that since the payments won’t be significant, submitting an application isn’t worthwhile.
DWP figures from last October revealed fewer than 70% of eligible pensioners across England, Scotland and Wales were accessing their Pension Credit entitlement. MoneySavingExpert Martin Lewis has championed this cause for years, encouraging people to claim what they’re owed.
Those who had submitted their claim were collecting £82.71 weekly on average or £4,300 annually.
In the most recent MSE newsletter, Martin highlighted a recent success story that had been sent in after one couple, whose identities have been altered to maintain privacy, disclosed how acting on this single piece of guidance transformed their circumstances.
Anne, 76 and her husband, 83, are both retired and receiving state pension. Upon applying for Pension Credit, they were granted £6.10 per week but that wasn’t the source of their substantial savings. Anne wrote to MSE: “Due to the application being backdated to when I applied, I did not have any Council Tax to pay this year – a saving of over £2,500/year. Add to this a free TV licence, Warm Home Discount, and a lower water bill.
“This has resulted in a saving of over £3,000 a year. This has made such a difference to my husband and me, with less worry over the cost of living. I am still budgeting very carefully, but with less pressure and anxiety.”
Despite this, Anne confessed she’s “too embarrassed to tell my friends that I am in receipt of these benefits”. Nevertheless, she implored Martin to keep raising awareness and encouraging those who qualify to claim what they’re entitled to.
She concluded: “I know the forms online are a little daunting, but I am sure family or a trusted friend would help.”
MSE urges anybody above state pension age on a limited income to investigate whether they qualify for Pension Credit. The Gov.uk website provides a Pension Credit calculator to assist people in assessing their eligibility prior to submitting an application.
Some other entitlements that Pension Credit claimants may be eligible for: