Martin Lewis warns one million missing out on ‘crucial’ gateway to cost of living payment | Personal Finance | Finance

Martin Lewis has urged state pension-age Britons to check if they’re eligible for the DWP’s Pension Credit benefit as it could provide a “gateway” to this week’s £300 cost of living payment.

According to the financial journalist, nearly one million pensioners are currently missing out on the “crucial” benefit that could be worth “thousands” of pounds.

After addressing the Government’s second batch of cost of living payments, which are being distributed to eligible benefit claimants from today, Mr Lewis told Good Morning Britain viewers to check if they qualify for Pension Credit. This is because the benefit can be backdated by three months, which means a person could find they qualify for the Government’s cost of living payment too.

Mr Lewis said: “The most important message I have for people about the cost of living payment. There’s a benefit called Pension Credit, which is specifically for lower-income pensioners.

“On that one, you can backdate the claim for three months, which means if you don’t get Pension Credit and you’re eligible for it, you can still get that extra £300 (cost of living payment), even if you were to claim now or next week or the week after.

“And there are nearly one million pensioners in this country not getting that absolutely crucial benefit.”

Explaining his “rule of thumb”, Mr Lewis said: “If you’re a single pensioner earning less than £220 a week, or you’re a pensioner couple earning less than £320 a week, then you should check out if you’re eligible.

“Call the Pension Credit helpline and ask them if you’re eligible. I’m not saying you will be. I’m saying you may be, and it’s worth checking because that could be worth thousands of pounds.

“And this current cost of living benefit payment, you may still get it even if you don’t claim Pension Credit yet.”

Mr Lewis said people can also check on the website, if they’re web-enabled, to see if they qualify for the tax-free benefit.

He said: “You just do a quick checklist to see. Up to a million pensioners, some of the people who have paid into the system all their lives. This is the thing that makes sure they have a basic standard of living when they retire.”

Mr Lewis urged: “Up to a million of them are not getting this crucial benefit. That’s a gateway to so many other things, including the cost of living payment that starts today.”

Good Morning Britain airs on ITV on weekdays between 6am and 9am.

What is Pension Credit?

Pension credit is a benefit distributed by the Department of Work and Pensions (DWP) to help those retired and on lower incomes with living costs. It can be worth up to £3,500 a year.

It stands as one of the DWP’s most underclaimed benefits but it can open the door to additional financial help, such as entitlement to Council Tax Support or cost of living payments.

The benefit is separate from the state pension and people can receive it even if they have other income, savings, or own their own home.

To claim, a person must live in England, Scotland or Wales and have reached the state pension age (currently 66 and over). They or their partner must also be receiving housing benefits.

If this applies, the person must then work out their total weekly income. This should include the state pension, other pensions, earnings from employment and self-employment, and most social security benefits, such as Carer’s Allowance.

Not all benefits are counted as income. For example, the following are not counted and shouldn’t be included in the calculation:

• Adult Disability Payment
• Attendance Allowance
• Christmas Bonus
• Child Benefit
• Disability Living Allowance (DLA)
• Personal Independence Payment (PIP)
• Social fund payments, such as the Winter Fuel Allowance
• Housing Benefit
• Council Tax Reduction.

People are most likely to be eligible if their total weekly income is roughly under £220. However, if their income is higher, they might still be eligible so it’s worth checking the Government Pension Credit calculator just in case.

There are two types of Pension Credit available – Guarantee Credit and Savings Credit. Guarantee Credit tops up weekly income to a guaranteed level of £201.05 for single claimants or a joint weekly income level of £306.85 for those with partners.

Savings credit provides an additional top-up for those who have made some provision towards their retirement by saving or contributing to a pension other than the basic state pension.

This is worth an additional £15.94 a week if they’re single, or £17.84 a week for those with partners.

People may get extra amounts if they have other responsibilities, conditions and costs to account for. The full list of additional benefits, what a person can receive, and whether or not they qualify for each individual benefit can be found here.

To apply for the benefit, people can reach the helpline by telephone on 0800 99 1234 or by textphone on 0800 169 0133. They can also apply online here.