Following Martin Lewis’ advice saved thousands for two retirees
Two retirees were able to save thousands in the last year after following some advice from Martin Lewis and applying for a benefit that many are missing out on. Despite only being paid a few extra pounds each week, their claim entitled the couple to a range of other supports including cutting their council tax to zero.
Pension Credit is one of the most underclaimed benefits on offer from the Department for Work and Pensions. It’s main purpose is to top up the income of people over the state pension age who have low earnings.
However, many people mistakenly believe they aren’t eligible or figure since they won’t get substantial payments that it’s not worth applying for.
DWP analysis last October showed less than 70% of eligible pensioners in England, Scotland and Wales were claiming their Pension Credit entitlement. MoneySavingExpert Martin Lewis has been on the forefront of this conversation for years, urging people to claim their dues.
Those that had made their claim were receiving £82.71 each week on average or £4,300 a year.
In the latest MSE newsletter, Martin shared a recent success story that had been mailed in after one couple, whose names have been changed to preserve anonymity, revealed how following this one piece of advice changed their lives.
Anne, 76 and her husband, 83, are both retired and on state pension. When she applied for Pension Credit, they were awarded £6.10 per week but that’s not where their major savings came from.
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Anne wrote to MSE: “Due to the application being backdated to when I applied, I did not have any Council Tax to pay this year – a saving of over £2,500/year. Add to this a free TV licence, Warm Home Discount, and a lower water bill.
“This has resulted in a saving of over £3,000 a year. This has made such a difference to my husband and me, with less worry over the cost of living. I am still budgeting very carefully, but with less pressure and anxiety.”
Despite this, Anne admitted she’s “too embarrassed to tell my friends that I am in receipt of these benefits”. But she urged Martin to continue raising awareness and urging eligible people to apply for their entitlements.
She concluded: “I know the forms online are a little daunting, but I am sure family or a trusted friend would help.”
MSE advises everyone over the state pension age on a low income to check if they are eligible for Pension Credit. The Gov.uk website has a Pension Credit calculator which can help people with this before they start their application.
Some other entitlements that Pension Credit claimants may be eligible for:
- Free TV licence if they are over 75
- Housing benefit
- Council tax reductions
- Free dental treatment
- Discounted prescription glasses and contact lenses
- Energy bill reductions
