The DWP support package is hugely underclaimed
Martin Lewis has pointed to a DWP pensioner payments scheme that can be worth thousands of pounds in support. People of state pension age can claim the support, which can make a huge difference to your income.
On a recent episode of his BBC podcast, he was asked a question about pensions and saving for retirement. A fan of the show asked if it was worth their time starting a pension, given they were 48 years old. They explained they had always paid their National Insurance, helping build up their state pension entitlement, yet they had always worked freelance and had never paid into a private pension.
Mr Lewis said that generally it’s a good idea to be paying into a pension, but there is one exception to the rule. He said in his response: “The only caveat when it can’t be worth it, is those who are very close to retirement, who are only putting a small amount in, who wouldn’t be entitled to the full state pension, and would therefore be entitled to the state pension top up called Pension Credit, if they didn’t have other income.
“That can only be the time where mathematically, financially it isn’t worth putting money into a pension for you.” You typically need 35 years of National Insurance contributions to get the full new state pension, which currently pays £241.30 a week.
How much is Pension Credit worth?
Pension Credit supports people of state pension age on a low income, topping up your weekly. Government figures suggest it can be worth more than £100 a week in support.
The benefit tops up your income up to £238 a week for single claimants or up to £363.25 a week if you live with a partner. Even if your income is above these amounts, you may still qualify, as you can get extra amounts on top of the income top-up depending on your situation, effectively increasing the qualifying threshold.
For example, you can get an extra £86.05 a week if you have a severe disability for which you receive any of several benefits, such as Attendance Allowance. You can also get £48.15 a week extra if you care for another adult, plus a range of extra amounts if you care for a child or young person.
You don’t have to be claiming your state pension to get Pension Credit. Claiming Pension Credit also opens up access to many other means of Government support, such as council tax discounts, a free TV licence for over 75s and help with certain NHS costs.
The benefit is typically worth around £4,300 a year in support, and can be worth a chunk more than this. Yet the benefit is hugely underclaimed, with close to a million pensioners missing out, despite Government campaigns to get people to apply.
You can apply for the benefit online through the Government website or by calling the claim line on 0800 99 1234. The phone line is open Monday to Friday from 8am to 6pm.
