Are you missing out on pension credit?
More than a million people are not claiming this gateway benefit – which could even see you keep your free TV licence. MARTIN LEWIS reveals what you need to know
THE BBC has announced that on August 1 it’s ending free TV licences for all those aged 75 and over. Instead, it’s only giving it to older viewers who receive pension credit.
Yet more than a million eligible pensioners are missing out on this important benefit which is worth thousands of pounds. So, whether it’s you, or you know a low-income pensioner, do spread word.
Currently any household with someone aged 75 or older in gets a free colour TV licence (normally costs £157.70 per year).
Many have written about the spat between the Government (who told the BBC it was responsible for the cost of licences) and the BBC (who says, because of that, it has to do this or can’t afford to operate), but as always, I’m focusing on the practical not the political.
If you’re 75-plus now and receiving a free licence, TV licensing will contact you in early August to let you know of your options and ask whether you need to start paying or not.
So, the sooner you check your pension credit situation the better.
WHO NEEDS A TV LICENCE (REGARDLESS OF AGE)?
THE criteria has changed in recent years, currently there are two main reasons you need a TV licence:
■ To watch or record programmes as they’re being shown on any TV channel or watch on an online version of a TV channel concurrently as it is being shown on the TV.
■ To download or watch any programmes on BBC iPlayer. If you only ever watch non-live programmes, on any other platform, like Netflix, YouTube or ITV hub, then you don’t need a TV licence.
There are many more small terms too (eg for students). For details see moneysavingexpert.com/tvlicence
PENSION CREDIT IS A MEANS-TESTED BENEFIT
IT’S tax free and aimed at those on the state pension with a low income.
Yet 40% of those who are entitled to it aren’t claiming it, meaning up to 1.2 million people are missing out on the benefit itself, and a host of other things it entitles you to, including the TV licence.
To qualify for it, you must live in the UK and have reached state pension age (currently rising from 65 to 66 for men and women).
Since May 15, 2019, most couples will only be able to start claiming if BOTH partners have reached state pension age.
The system is complicated, so by far the best thing is if you’re a lower income pensioner, check at gov.uk/ pension-credit-calculator or call the Pension Service on 0800 99 1234.
To claim, you’ll need your national insurance number, income details, savings and investments and your bank account details. You can backdate your claim for three months – do request that.
If you prefer to know more before doing that (there’s no need) the pension credit is made up of two elements:
■ Guarantee credit: If your weekly income is less than £173.75 (for a single pensioner), or your joint weekly income is less than £265.20 (couple), your income will be topped up to this level.
■ Savings credit: This is mostly only available to those who reached state pension age before April 6, 2016, who have some savings (it’s done so those who saved aren’t disadvantaged by it). You could be eligible for up to £14/week extra (single) or £16/week (couple).
PENSION CREDIT IS A CRUCIAL GATEWAY BENEFIT
I CALL it a gateway benefit, because if you qualify it opens up many more discounts too. Some, like the
TV licence, are for anyone on pension credit, but most are only for those on the main ‘guaranteed’ element.
■ Council tax reduction – worth £1,000 per year
typically: Contact your council, different councils have different schemes. Those on pension credit could be eligible for up to 100% reduction of your council tax bill.
■ Cold weather payments – worth £25 per week when it’s really cold:
This is awarded for each seven-day period of very cold weather (0°C or below) between November 1 and March 31. If receiving pension credit, the money will be paid automatically.
■ Warm home discount – worth
£140 per year: Many energy suppliers offer this automatic credit to your bill by the end of March. You’ll receive a letter between October and December to apply, or call the helpline on 0800 731 0214.
■ Housing benefit – could be
worth £1,000s per year: If you pay rent for your home you could be entitled to housing benefit entitlement, worth £100s per month. When you claim pension credit, you should be asked if you want to claim housing benefit at the same time.
■ Free dental care – worth £100s/yr for
some: Those on the guaranteed element are entitled to free NHS dental care. This could include anything from a check-up to full dentures. Just sign a declaration form when you visit your dentist.
■ Voucher for glasses/contact lenses – worth £39-£215 depending on your prescription:
If you receive the guaranteed element, you’re entitled to a voucher for glasses/contact lenses. Ask for the voucher form when you have your eye test.
■ Water bills – up to 50% off: This isn’t widespread and depends on your individual water company, but some may give you a discount.
■ Martin Lewis is the founder of MoneySavingExpert.com. To get his free Money Tips weekly email, go to moneysavingexpert. com/latesttip