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The 16 state pension freebies and discounts you can get in December worth up to £10,864
Read on to find out what you could claim
ONCE you hit age 66, you can start claiming your state pension, which is worth £11,502 a year if you get the full amount.
But alongside that, the state pension also gives you access to lots of other benefits that can help you manage the cost of living.
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For instance, depending on your other income, you could get free TV licenses, Pensions Credit, help heating your home when it’s cold and even a discount on your council tax or water bill.
Here’s a list of all the extra benefits you can access this December.
DWP Christmas bonus - £10
The Department for Work and Pensions gives people on certain benefits a Christmas bonus payment worth £10.
The money doesn’t count for tax purposes and won’t impact your other benefits.
Read more on state pension
It will be paid automatically into your account, and you don’t need to do anything.
It often arrives in early December, but could be at any point before January 1.
You need to actually be claiming the State Pension (or one of the other eligible benefits, ) to get the cash.
If you’re over state pension age but haven’t yet applied to get your state pension paid then you won’t get the bonus.
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Pension credit – worth £3,900 a year on average
Pension Credit is a valuable benefit worth around £3,900 a year on average, for pensioners on lower incomes.
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According to the latest government stats, there are around 880,000 Brits who would qualify for the benefit but don’t get it as they’ve not yet applied.
This is even more important this year as the winter fuel payment (worth up to £300 off your energy bills) has now been made means-tested, and one of the key qualifying benefits is Pension Credit.
Pension Credit tops up your weekly income to £218.15 a week if you’re single, and £332.95 for couples.
There are lots of additional top up amounts available if you’re a carer, responsible for a child, or have a disability, which means it could be worth significantly more.
How does the state pension work?
AT the moment the current state pension is paid to both men and women from age 66 - but it's due to rise to 67 by 2028 and 68 by 2046.
The state pension is a recurring payment from the government most Brits start getting when they reach State Pension age.
But not everyone gets the same amount, and you are awarded depending on your National Insurance record.
For most pensioners, it forms only part of their retirement income, as they could have other pots from a workplace pension, earning and savings.
The new state pension is based on people's National Insurance records.
Workers must have 35 qualifying years of National Insurance to get the maximum amount of the new state pension.
You earn National Insurance qualifying years through work, or by getting credits, for instance when you are looking after children and claiming child benefit.
If you have gaps, you can top up your record by paying in voluntary National Insurance contributions.
To get the old, full basic state pension, you will need 30 years of contributions or credits.
You will need at least 10 years on your NI record to get any state pension.
Savings credit – worth £884.52 for an individual
You might be eligible for the ‘Savings Credit’ part of Pension Credit if you reached State Pension age before April 6, 2016, and saved some money for retirement.
If you're single, you can get up to £17.01 a week; for couples, it's up to £19.04 a week.
You don’t need to get the guarantee element of Pension Credit to get the savings part.
National insurance exemption – worth £1,851.20 on average
Plenty of people choose to keep working beyond state pension age, but what you might not know is you no longer need to pay National Insurance on your pay.
According to data from Tax.org.uk, someone on £20,000 a year currently pays £594 in primary Class 1 NICs, while an employee earning £40,000 this year will pay £2,194.
The average weekly wage in the UK according to the ONS is £687 for total earnings.
Someone on this wage would typically pay £1,851.20 in National Insurance, which they’d save after State Pension Age.
Free prescriptions – worth £114.50
You don’t actually need to hit state pension age to get free prescriptions in the UK, they kick in when you’re just 60 years old.
How much you’ll save depends on how many prescriptions you have, but an annual prepayment certificate costs £114.50 for 12 months, so no one should normally pay more than that.
Anyone under that age can get a prescription pre-payment certificate.
These cost £114.50 and will save you money if you need more than 11 prescribed items in a single year.
Free dental treatment – at least £26.80
If you or your husband, wife or civil partner get the Guarantee Element of Pension Credit, you can also get completely free dental treatment through the NHS.
Your savings will depend on what treatment you need, but there are three bands of costs.
You pay £26.80 for band one, which includes things like examinations and advice, x-rays, colour photographs or adjusting dentures, regular check ups, and emergency appointments.
The next band up is £73.50 and includes most basic treatment such as fillings, root canals, gum diseases, complicated denture adjustments, and periodontal surgery.
The most expensive band costs £319.10 and includes false teeth, crowns, bridges, orthodontic treatments, and veneers.
Free eye tests and glasses - £20-£25
Over-60s get a free eye check up every two years.
If you get the guarantee part of Pension Credit, you might also be able to get more regular check-ups free through the NHS if you need them.
You might also be able to get vouchers which towards the cost of glasses or contact lenses.
Eye test costs vary depending on which chain you use and where in the country you are.
But Specsavers says it usually charges between £20-25, with an additional £10 if you want an Optical Coherence Tomography (OCT) test.
Free TV licence – worth up to £169.50
TV licenses used to be universally free for anyone over age 75, but now they are means tested.
To qualify, you need to get Pension Credit or live with a partner who gets Pension Credit.
A colour license costs £169.50 a year, while a black and white licence costs just £57.
Free council tax – worth £2,171 on average
Anyone who gets the Guaranteed part of Pension Credit, could be eligible for a council tax reduction worth up to 100% of your bill.
For a band D property, the average UK bill is £2,171 a year.
If you have a low income with savings under £16,000, you might still qualify for some assistance.
Councils set their own rules, so you need to get in touch with your local authority to see what help is available and how to apply.
Free bus passes - £1007.24 for daily bus users
You can travel for free on buses all through the UK once you hit state pension age.
You need to pop in your postcode and apply for a pass on the
In London, TFL allows people to travel free on buses, tubes and other transport from the age of 60.
In Wales you can also get a free bus pass from age 60.
According to the 2022 National Bus Fares survey, the average cost of a three-mile bus ticket in the UK was:
- Single ticket: £2.47
- Day ticket: £5.29
- Weekly ticket: £19.37
The government introduced a scheme capping rural journeys at £2, which would cost £730 if you bought a ticket every day.
From the end of December this is rising to £3, which is an annual cost of £1,095 if you travelled daily.
If you’re on a route that doesn’t cover the scheme and were getting weekly tickets at the non-capped rates, year-round, that would set you back £1007.24.
Discounted rail travel – save £96 a year
Once you hit 60, you can apply for a Senior Railcard allows which saves you a third on all Standard and First Class, Anytime, Off-Peak and Advance train fares.
The railcard company says that people with a Senior Railcard save on average £96 a year, after the cost of paying for the card has been deducted.
It adds that you usually make your money back on the cost of the card within three journeys.
You can also make bigger savings by getting a three-year card, which costs £70 rather than £90 if you buy a new card each year.
Discounted broadband costs- save £142.92
Lots of broadband providers offer social tariffs for people who get certain benefits – often including Pension Credit.
Some of the main ones to consider are:
- Vodafone Essentials broadband & line: £20/ month with £9.99 paid up front
- BT Home Essentials broadband & line: Between £15/month and £23/month with £11.99 paid up front (depending on need)
- Sky Basics broadband and line: £20/month
- Now Basics broadband and line: £20/month
- KCOM Full Fibre Flex broadband and line: £14.99/month
- Hyperoptic Fair Fibre Plan broadband optional line: From £15/month
- Truespeed (broadband only): £20/month
According to Uswitch, the average cost of broadband in the UK is £26.90 a month.
Switching to the cheapest social tariff would save you £142.92, and the social tariffs usually include line rental which may be an added cost otherwise.
Discounts on energy bills – up to £300
If you were born before September 23, 1958 and you get the Guarantee element of Pension Credit, you might be eligible for the Winter Fuel Payment, which is worth up to £300 off your energy bills.
You’ll get either:
- £200 if you were born between 23 September 1944 and 22 September 1958
- £300 if you were born before 23 September 1944
If you’ve not yet applied for Pension Credit, you need to do so by December 21 to qualify for this year’s discount.
The money is paid into the bank account where you usually get your benefits.
Cold weather payment – worth £25 for each seven-day period of very cold weather
People on Pension Credit also get cold weather payments.
These give you £25 every time the average temperature in your area is below 0 degrees Celsius over seven consecutive days.
The money should be paid directly into the account where you usually get your Pension Credit payments.
Last year there were 31 trigger weeks according to government statistics, although these were spread around the country.
The most commonly hit area was Shap where people received three payments, getting £75.
Warm home discount – worth £150
The Warm Home Discount Scheme is a one-off £150 discount, which comes directly off your bills.
There are several benefits that allow you to qualify, but one of them is Pension Credit.
If you’re on Pension Credit, you should get the discount automatically, but you might get a letter asking for more information.
If you do, you need to reply by February 28, 2025.
If you’ve not had a letter either confirming that you qualify or asking more information by early January, you should contact the Warm Homes Discount scheme on 0800 030 9322.
Not all energy suppliers are signed up to the scheme, so you might have to switch if yours doesn’t offer the discount.
Discounted water bills
If you’re on a low income, ask your water provider about social tariffs, which can knock hundreds of pounds of your bill.
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Discounts vary depending on the provider, and some offer a flat rate, while others will give a percentage discount.
Contact your supplier to find out what’s available.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
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