Grandparents must claim pension credit before deadline tomorrow or miss out on up to £70,000
THOUSANDS of pensioners could miss out on £70,000 or more worth of Pension Credit if they don't sign up before the deadline tomorrow.
The new rules, which affect any retirees with partners that are younger than the State Pension Age, came into force on May 15, 2019.
But if you reached 65 before that date, you have until tomorrow, 13 August to submit a backdated claim.
Under the new system, pensioners won't be able to claim Pension Credit until their younger partners reach retirement age.
But couples that already receive the benefit will not be affected, so it's important to get your claim in as soon as possible.
If you miss tomorrow's deadline, you won't get another chance to apply.
What is pension credit?
PENSION credit is a means-tested benefit that helps those on lower incomes by giving them extra money throughout retirement.
There are two parts to the benefit and pensioners can be eligible for one or both parts:
- Guarantee credit - tops up your weekly income to a guaranteed minimum level. This is £167.25 a week if you're single and £255.25 a week for married couples.
- Savings credit - provides extra money if you've saved money towards retirement. You can get an extra £13.75 a week for a single person or £15.35 a week for a married couple.
You may also get additional pension credit if you are disabled, have caring responsibilities or have to pay certain housing costs such as mortgage interest payments.
For instance, you can get either £53.34 a week or £63.84 per week for each child or young person you’re responsible for.
If they’re disabled, you may get more.
The government has said that the changes will cost couples £7,000 a year on average.
But Age UK says the cost for many families will be much higher than that.
The charity found that one in 12 couples report having an age gap of ten years or more, meaning they will lose out on over £70,000 while they wait for their partner to reach his or her state pension age.
A third of couples have an age gap of of five years or more, meaning they'll miss out on £35,000 or more.
As well as missing out on the Pension Credit money, these couples will also miss out on benefits such as free TV licences, council tax reductions and cold weather payments.
How to apply for Pension Credit
THE fastest way to apply for pension credit is by phone.
You can get a friend or family member to ring for you, but you'll need to be with them when they do.
Just call the pension credit claim line on 0800 99 1234.
It's open Monday to Friday from 8am to 7:30pm.
You'll need some information to hand before you make the call, including:
- Your national insurance number
- Information about your income, savings and investments
- The details for the account you want the money to be paid into
You can use a paper application if you’re unable to make a claim by phone.
Contact a voluntary organisation (for example or ) in your area to ask for a paper application.
The earliest possible date to apply is four months before you reach your state pension age.
If you claim after you reach pension age, you can backdate your claim for up to three months.
Many of those who will be affected by the Government’s rule change on Pension Credit have health problems or caring responsibilities and are struggling to manage on the income they currently have.
But qualifying retirees who get their backdated claims in before next week, will continue receiving Pension Credit as well as the other associated benefits.
That means you'll keep getting the £7,000 a year, regardless of how old your partner is.
If you're a retiree with a lower income, you should check now to see whether you might qualify for the benefit.
Who is eligible for Pension Credit?
To qualify, you'll need to have a weekly income of less than £167.25 for single people or £255.25 for couples.
Your income is worked out taking into account various elements including:
- Your state pension
- Any other pensions you have saved, for instance workplace or private pension savings
- Most social security benefits, for example carer’s allowance
- Any savings or investments worth over £10,000
- Earnings from a job
The calculation does not include:
- Attendance allowance
- Christmas bonus
- Disability living allowance
- Personal independence payment
- Housing benefit
- Council tax reduction
If your income is too high to get guarantee pension credit, you may still get some savings pension credit, so it's worth checking.
Caroline Abrahams, charity director at Age UK, said: "We urge any pensioner who thinks there is even the tiniest chance that they could be entitled to Pension Credit and/or Housing Benefit to put in a claim straight away, certainly before the 13th August deadline.
"If their claim succeeds it could make a huge difference to them in the future, potentially boosting their income by tens of thousands of pounds over the next few years.”
Any older person who is worried about money can contact Age UK by calling its national advice line on 0800 169 65 65, visiting the or contacting their local Age UK for free information and advice.
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