Pensioners could get £800 & free TV licence but thousands missing out - are you eligible?

Pension Credit is a benefit for people who are over state pension age and are on lower incomes, and helps eligible retirees by boosting their weekly income. It has two parts; Guarantee Credit and Savings Credit, with each part providing a different level of supplementary income to those who need it.

Guarantee Credit tops up one’s weekly income to a guaranteed level of £177.10 for single pensioners, who would receive a monthly income of £708.40 in a standard four-week month, and £9,209.20 per year.

Pensioners who are married or in a civil partnership would have their weekly income boosted to a level of £270.30 each week, which would add up to £1,081.20 a month and £14,055.60 for a full year.

Savings Credit provides some extra income if one has made some provision towards their retirement through savings, or via a pension other than the basic state pension. For single retirees, the extra money provided by Savings Credit can be up to a maximum of £14.04 per week.

This would allow them to pick up an additional £56.16 each month, and boost their income by £730.08 for the year. Those who are married or in a civil partnership could get up to an extra £15.71 a week, which would allow pensioners to stack up £62.84 more each month, or £816.92 a year. These figures are all for the 2021/22 tax year.

READ MORE: Universal Credit, PIP & state pension recipients set for bonus in December 2021

© GETTY pension credit benefits free tv licence

Another potentially great benefit of Pension Credit is that people who are over 75 and claim Pension Credit can also claim a free TV Licence worth £159. By combining that saving with the maximum amount of extra income afforded by Savings Credit, a single pensioner could benefit from an extra £889.08 each year, or £975.92 for a couple.

One can apply for Pension Credit up to four months before they want to start receiving it, thus avoiding having to wait around to receive their first payment. A claim can be made any time after one reaches state pension age, but claims can only be backdated for a maximum of three months. This means one could get up to three months of Pension Credit in their first payment.

However, there are some conditions that must be met in order for someone to be eligible to receive the different parts of Pension Credit. Only people who reached state pension age before 6 April 2016 qualify to claim the Savings Credit part of Pension Credit.

People who reached state pension age on or after 6 April 2016 can still get the Guarantee Credit part of Pension Credit. Even if one is only entitled to a small amount of Pension Credit, it may be worth claiming as it could help them qualify for other benefits, as well as providing some additional income.

DON’T MISSMan explains how he earns an extra £800 per month after being hit by impact of Covid [FEATURE]Pensioner National Insurance set to rise and rise and YOUR state pension is next at risk [ALERT]Inheritance tax hike inevitable Sunak warned as its ‘harder to rely on income tax’ [WARNING]

Some people may even be able to access a higher level of Pension Credit, bringing in even more extra income each week. Those who are disabled, have caring responsibilities or are responsible for paying certain housing costs, such as mortgage interest payments may be eligible.

To claim Guarantee Credit, one needs to have reached state pension age, whereas to qualify for Savings Credit, one must have reached state pension age before 6 April 2016. The amount that can be claimed will depend on the savings and income one already has.

Although one must have reached the state retirement age in order to be eligible, Pension Credit can be claimed regardless of whether one has actually retired or not, meaning even those who are still working can apply.

The amount of Pension Credit that can be claimed will also depend on the pension pots one already has, which will be assessed when one applies for the benefit. After someone (or their partner) reaches state pension age, any lump sums that either of them draws out of their pension pots, and any moneyleft inthe pension pot will be taken into account when income is assessed.

© Express what is state pension

For example, someone with a pension pot of £30,000 who has taken a lump sum of £10,000 from it will have a remaining pot of £20,000. Both amounts will be part of the assessment of income when calculating the level for benefit one is entitled to.

People who have left their pension savings alone will be assessed in a different way. The Department for Work and Pensions (DWP), HMRC or local council will check how much one would get if they had bought an annuity, which is when one sacrifices part of their pension and in turn receives a guaranteed income for life. This will then be taken into account one’s income is being assessed.

An assessment will also be done for people who have used their retirement income flexibly by keeping money in a pension pot and then taken income from it regularly, or as and when they want. The relevant authority will look at how much one would get if they bought an annuity, in the same way that people who have not drawn anything from their pension pot are assessed.

However, in this case, how much flexible income one has been taking is also taken into account, and whichever comes out as the higher amount will be used when one is assessed for benefits.

Applicants must be aware though that it is their responsibility to tell the DWP, HMRC or their local council if them or their partner has taken any money from their pension pot, and if one deliberately spends or give away money from their pension pot in order to get, or increase their benefits, their eligibility may be assessed again, and they may be treated as though they still have that money.

© GETTY pension credit benefits free tv licence

As well as any income or lump sum taken from one’s pension pot, other assets such as savings and investments could also count towards the benefit assessment.

Following some changes to the scheme from May 2019, couples can only make a new claim for Pension Credit if they fulfil certain criteria. Both parties in the couple must have reached state pension age, or alternatively if one party has reached state pension age and is claiming Housing Benefit for the couple, they may also apply for Pension Credit.

These changes only apply to new claims, and if someone already receives Pension Credit and their partner is under state pension age, they will continue to receive Pension Credit for as long as they qualify.

However, if one’s circumstances change and they lose their Pension Credit entitlement as a result, one will not be able to begin receiving it again until they qualify under the new rules. One will also lose their entitlement if they were single and claiming Pension Credit before 15 May 2019, but on or after that date began living with a partner who is under state pension age, until their partner eventually reaches state pension age themselves.

Even if a couple discovers that they do not qualify for Pension Credit under the new rules, they can both apply for Universal Creditinstead and supplement their income in that way.

Internet Explorer Channel Network
News Related

OTHER NEWS

ScotRail strikes to go ahead during Cop26 climate talks in Glasgow, union says in pay dispute

Rail strikes will go ahead as planned during crucial climate talks, the RMT union has confirmed – effectively shutting down Scotland’s train services when thousands of people plan to travel ... Read more »

Transport upgrades for 8 regions to be announced in Budget - full list of projects

A £5.7billion list of transport upgrade projects for eight regions of England is set to be confirmed in next week’s Budget and spending review. Rishi Sunak will try to fulfil ... Read more »

Capital Gains Tax hike the 'logical next step' for Rishi Sunak as effective rates drop

According to new research from UHY Hacker Young, of the capital gains made in the past year, an effective rate of only 14.9 percent tax was paid, down from 16.5 ... Read more »

Astros vs. Red Sox live score, updates, highlights from Game 6 of 2021 ALCS

After falling a game short of making the World Series last year, the Astros have a chance to make it there this year as Game 6 of the ALCS gets ... Read more »

Spurs vs. Nuggets odds, line, spread: 2021 NBA picks, Oct. 22 predictions from proven computer model

The San Antonio Spurs take on the Denver Nuggets at 8 p.m. ET on Friday at Ball Arena. Both teams opened the season with statement wins, and are looking to ... Read more »

String of names are linked with Laura Kuenssberg's BBC role

© Provided by Daily Mail MailOnline logo It is seen as the most high-profile reporting job in British broadcasting – and accordingly there is no shortage of candidates to be the ... Read more »

English cities to receive transport boost of almost £7bn in budget

© Provided by The Guardian Photograph: Christopher Thomond/The Guardian Almost £7bn will be allocated in next week’s budget to “level up” urban transport in cities around England, the government has ... Read more »

Midleton overcome Erin's Own, Trillick too good for Killyclogher

© James Crombie INPHO File pic. MIDLETON OVERCAME Erin’s Own 0-23 to 0-19 in the Cork Premier SHC quarter-final at Páirc Uí Chaoimh this evening. Erin’s Own led at half-time 0-12 ... Read more »

Metro mayors to get £7bn in transport funding from Treasury to improve transport links outside London

Rishi Sunak will give metro mayors nearly £7bn in transport funding in a bid to improve transport links outside of London. The Treasury has announced the investment will be given ... Read more »

Virgin Voyages' epic 80's themed cruise will include shows from Tony Hadley and ABC

It’s time to dig out those shoulder pads, perm your hair and get ready to step back to the 80’s, thanks to an epic new cruise! Get ready for a ... Read more »

'She wanted too much:" Calgary murder trial hears mother wanted to get married

CALGARY — A murder trial has heard a Calgary man who killed his girlfriend and is also accused of killing her young daughter told undercover police that the woman wanted ... Read more »

ADAC GT Masters Hockenheim: Notizen vom Freitag

© Motorsport.com Motorsport photo Einen Vorgeschmack auf die Saison 2022 bieten in Hockenheim gleich mehrere neue Rennwagen. Audi hat den R8 LMS Evo II und die neue Generation des TCR-Rennwagens ... Read more »

Upacara pengebumian cetus kluster Alab Senagang di Tenom

© Provided by Sinar Harian KOTA KINABALU – Seorang wanita menjadi kes indeks apabila upacara pengebumian ibu mertuanya yang diadakan di rumahnya di Kampung Alab Senagang, Tenom pada 11 Oktober ... Read more »

Arsenal fans taunt Emiliano Martinez with cruel chants in Aston Villa win

Arsenal fans taunted Emiliano Martinez with a cruel chant during their win over Aston Villa at the Emirates on Friday night. The Gunners made light work of the Birmingham-based side ... Read more »

Skosan scores hat-trick as Saints put 66 past Worcester

South African winger Courtnall Skosan scored a hat-trick of tries on his debut as Northampton got back to winning ways emphatically with a 66-10 thrashing of a hapless Worcester. Saints ... Read more »

CDC says people can 'mix and match' COVID boosters: What to know

When the CDC recommended boosters Thursday for some people who received Moderna’s COVID-19 vaccine and everyone who received Johnson & Johnson’s, the agency also gave the OK for eligible adults ... Read more »

Power rate increase will scare investors away –Zarate

Economy electricity power lines energy 153194849 power supply thumbnail power lines thumbnail electricity thumbnail Bayan Muna party-list Representative Carlos Zarate on Friday denounced the electricity rate increase this October, noting ... Read more »

More of Manila Bay beach open to public

© Miguel De Guzman More of Manila Bay beach open to public MANILA, Philippines — The Manila Bay Coordinating Office (MBCO) yesterday said it is ready to admit a large ... Read more »

Judge: Certain California prison guards must be vaccinated

© Provided by Associated Press FILE – In this Aug 16, 2016, file photo, a guard opens an entrance to the north segregation section of death row at San Quentin ... Read more »

Climate advocates turn sights on Wall Street

The fight over climate change is increasingly focusing on Wall Street, with a key federal watchdog this week directing regulators like the U.S. Securities and Exchange Commission (SEC) to do ... Read more »

Justice Sonia Sotomayor criticizes colleagues for allowing Texas abortion ban to remain in effect

Justice Sonia Sotomayor sent a strong reminder Friday that she is not a justice looking to carve out compromises with a conservative majority. © Rogelio V. Solis/AP In this Aug. ... Read more »

Suns Release Statement Addressing Forthcoming Report About Owner Robert Sarver

Earlier today, NBA reporter Jordan Schultz reported that the NBA was preparing for a “massive” story about Phoenix Suns owner Robert Sarver. In it, according to Schultz, are allegations of ... Read more »

Suns Deny Reported Robert Sarver Scandal

The Phoenix Suns have denied there is a massive scandal brewing involving owner Robert Sarver. © Provided by The Big Lead WNBA Finals – Game Two | Christian Petersen/GettyImages On ... Read more »

A record amount of Americans are quitting their jobs due to pandemic burnout

A record 4.3 million Americans quit their jobs in August alone. The biggest reason: burnout. But rather than complain, thousands have started their own companies. © Credit: CBSNews nicholas-folmar-4.jpg Nick ... Read more »

Almost entire Negri team infected by Covid-19

© Provided by New Straits Times KUALA LUMPUR: Negri Sembilan is forced to withdraw from the Malaysia Cup after 20 players and four team officials tested positive for Covid-19. A ... Read more »

In militant attacks, long Poonch ops, concerns and very few answers

© Provided by The Indian Express Security forces are grappling with two major situations in J&K — the killings of civilians in Kashmir, and a hunt for the militants who ... Read more »

Byju Raveendran: Monetising education

BECAUSE BYJU’s is one of India’s largest learning platforms and the most valuable edtech company in the world. Since 2011, it has spent over $2.6 billion (Rs 19,400 crore) in ... Read more »

Trust of Ayodhya mosque: Amend CAA to include Afghan Muslims

© Provided by The Times of India AYODHYA: Indo-Islamic Cultural Foundation or the Ayodhya mosque trust has condemned the torture and oppression of not just minorities but also of Muslims ... Read more »

One more succumbs to dengue in Mohali, 101 fresh cases in tricity

© Provided by Hindustan Times Fogging operations underway at a residential area in Sector 30 of Chandigarh on Friday. The operations were carried out in view of the dengue outbreak ... Read more »

Not seen during Covid-19 times, not heard otherwise

© Provided by The Indian Express A mute spectator in the General House as well as in her own ward — that’s how Congress councillor Sheela Devi can be described. ... Read more »

Horner discusses Mercedes ‘device' to lower W12

Christian Horner is convinced Mercedes are using a special “device” that has increased their straight-line speed. © PA Images Close-up of Lewis Hamiltons Mercedes planetF1 Mercedes have established a pace ... Read more »

Arteta hails young players and VAR after convincing Villa win

Arsenal manager Mikel Arteta has heaped praise on his young players after the Londoners brushed Aston Villa aside on Friday night. © PA Images Mikel Arteta celebrates a goal The ... Read more »

Fact check: Image of Ben Shapiro tweet about Columbus Day manipulated

© Junfu Han, Detroit Free Press Ben Shapiro speaks at the Rackham Auditorium on U-M central campus in Ann Arbor, Tuesday, March 12. , Tuesday, March 12, 2019. The claim: ... Read more »

2 new cranes to be erected at site of deadly Kelowna crane collapse

© Alistair Waters / The Canadian Press A worker looks on as a police officer investigates a collapsed crane resting on the building it damaged in Kelowna, B.C., Monday, July ... Read more »

Gut-Behrami über Reisestrapazen und das Zuhause als Kraftort

© KEYSTONE/GIAN EHRENZELLER Lara Gut-Behrami verspürt auf der Welttournee der Skirennfahrerinnen zusehends Heimweh. Doch sie hat ihr Rezept gefunden. Die Vorbereitung auf die Olympia-Saison verlief vielversprechend. Das Gesicht unter einer ... Read more »

Ducks forward Max Jones out four to six months with torn pectoral

Anaheim Ducks forward Max Jones went down with an injury in this past Monday’s 3-2 overtime win over the Calgary Flames.  © James Guillory-USA TODAY Sports Anaheim Ducks left wing ... Read more »

Seahawks designate Rashaad Penny to return from injured reserve

© Provided by NBC Sports The Seahawks designated running back Rashaad Penny to return from injured reserve Friday. Now, can he stay healthy? Penny has missed almost as many games ... Read more »

How Joe Giudice really feels about Teresa Giudice's engagement

Joe Giudice seems to be surprised that his ex-wife, Teresa Giudice, is already heading down the aisle again.  On Oct. 19, “The Real Housewives of New Jersey” star said “yes” ... Read more »

How Sarah Paulson's 'the killer is escaping' line from 'American Horror Story: Asylum' became one of the fall's biggest TikTok memes

© Frazer Harrison/Getty Images Sarah Paulson in 2020. Frazer Harrison/Getty Images One of Sarah Paulson’s lines from “American Horror Story: Asylum” has gone viral on TikTok. The line, “the killer ... Read more »

RBI panel held rates over poor output, uneven growth

© Provided by The Times of India TNN Mumbai: The minutes of the October monetary policy committee (MPC) meeting released on Friday reveal that members chose to hold rates despite ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic