- Brits have received £2.2 billion in cost-of-living payments over the last eight days, new government data reveals (£2.2 billion in Cost of Living Payments paid by DWP over the last eight days - GOV.UK (www.gov.uk))
- More than 7 million households have been paid the latest £300 cost-of-living payment ahead of Christmas
- Anyone eligible for means-tested benefits on any day from 18 August to 17 September can get the payment
- Crucially, individuals must claim Pension Credit and the DWP estimates hundreds of thousands fail to claim the benefit they are entitled to
- Pension Credit claims can be backdated three months, meaning low-income retirees still have time to make a claim and benefit from latest cost-of-living payment
- Pension Credit also acts as a gateway to other valuable benefits, such as help with heating costs and free TV licences
Tom Selby, head of retirement policy at AJ Bell, comments:
“Millions of households will be bracing for a challenging winter as the cost-of-living crisis continues to bite into people’s incomes. Those on lower incomes face a particularly tough time, which is why three cost-of-living payments worth £300 each are being paid out over the course of 2023 and 2024.
“For those struggling to make ends meet, these payments are a lifeline, so it is encouraging over 7 million households have received £2.2 billion in support in the last eight days.
“Low-income pensioners are often acutely affected by the drop in temperatures in winter, particularly where mobility is an issue, which can mean leaving the house is a struggle. Anyone entitled to Pension Credit for even one day from 18 August to 17 September will benefit from the full £300 cost-of-living payment, but crucially it is up to the individual to make the claim.
“The DWP estimates hundreds of thousands of households that could be eligible for Pension Credit fail to claim the benefit they are entitled to. This not only means people risk missing out on cost-of-living payments but financial support of £3,500 a year on average. In addition, Pension Credit acts as a gateway to other valuable benefits, such as help with heating costs and housing benefit.
“If you haven’t made a Pension Credit claim for the latest cost-of-living payment qualifying period, there’s still time, because you can backdate your claim by up to three months.
“If you are unsure whether you might qualify for Pension Credit, the easiest way to find out is via the government’s online calculator. Alternatively, you can call the government’s Pension Credit hotline. Organisations like Age UK also have lots of information and guidance for pensioners unsure about how to make a claim.”
Background
Pension Credit is a key benefit provided by the state which often tends to go unclaimed by lower income retirees.
In 2023/24, if you are over State Pension age (66), single and your income is less than £201.05 a week then Pension Credit will top you up to that amount. For a couple, the combined income figure is £306.85.
In relation to Pension Credit, your income includes your State Pension, other pensions, employment or self-employment earnings and most social security benefits. As with the State Pension, it is up to you to claim Pension Credit.
For those who are entitled to receive it, claiming Pension Credit is also really important because it acts as a gateway to other benefits, such as help with heating costs, housing benefit, dental treatment and free TV licenses (if you are aged 75 or over).
In addition, those who claim Pension Credit currently qualify for cost-of-living payments from the government.
The government has made concerted efforts to boost Pension Credit take-up and recently launched a trial which will see 2,000 people the DWP believes could be entitled to claim the benefit receiving letters encouraging them to make a claim.
