Worried pensioners anxious about their financial future may be able to claim £3,000 a year under a DWP benefit. Pensioners are now being urged to take matters into their own hands and seek more support.
The advice follows Rishi Sunak’s Spring Statement on Wednesday (March 23) which was widely panned by critics including Money Saving Expert Lewis. One avenue of support is through pension credit also known as a "gateway" benefit.
This provides additional financial assistance with bills to those on a low income. Claimants are entitled to a range of support such as free TV licences if they are over 75, Cold Weather Payments and help with NHS costs.
The pension credit increases weekly income to £177.10 for single people and joint weekly income to £270.30 for couples in a process known as Guarantee Credit. As reported by YorkshireLive, people who saved money for their retirement may be eligible for an extra sum known as savings credit — though they must have reached the State Pension age before April 6 2016.
What is pension credit?
You can access financial support and boost your state pension through pension credit if you are not well off. Pension credit is a means-tested benefit, meaning it is based on your earnings.
This boost would in effect top-up your state pension. There are two parts of the pension credit, called guarantee credit and savings credit.
Which? say approximately four million people are entitled to pension credit. The shock is that a third of those fail to claim it.
Rishi Sunak, the UK Chancellor of the Exchequer unveiled a number of measures in the spring statement. He revealed that the threshold for paying National Insurance would be increased to £12,570, that there would be a cut to fuel duty and homeowners would pay 0% VAT on energy-saving materials such as solar panels or heat pumps over the next five years.
Mr Sunak also shared a new "tax plan" which he claims will " help families with the cost of living”, “create the conditions for higher growth”, and “share the proceeds of growth fairly”. However, his statement drew backlash and claims that the move is not enough.
Money Saving Expert Martin Lewis also commented on the statement via social media, writing: "If that's all he's doing on energy - it is limited and won't impact the majority of households who will see a likely £1,300 average increase in year-on-year bills by October. My head has sunk."
Head of Policy and Influencing at Independent Age, Morgan Vine said: “The Chancellor’s Statement will only have increased the anxieties many older people are feeling as they brace for a harsh year ahead. As the cost of living crisis takes hold, older people with limited income are desperate for immediate and meaningful action to help with living costs.
"The Statement falls far short of delivering that. It won’t make any real difference for older people already struggling to pay for essentials like heating and food."
Vine added: "Alarm bells should be ringing in the Treasury, but the Chancellor doesn’t seem to have got the message. While it’s positive that the government has committed to reinstating the state pension triple lock next year, that won’t help the 2.1 million older people who are struggling now.”
