Pension Credit is a benefit that tops up the income of people of state pension age on low incomes and claimants may be eligible for a £900 cost of living payment going out in three instalments over this financial year.
The cost of living payment is going out to people on certain means-tested benefits, including Pension Credit and Universal Credit, and the first instalment of £301 has been arriving in eligible people’s bank accounts in recent weeks.
If a person applies for Pension Credit and they are successful in backdating their claim by three months, they will still qualify for the £301 payment.
But an applicant will need to file their claim before May 19 to secure the funds. A person can apply online if they have already put in their claim for their state pension.
READ MORE: State pension alert as Britons could find National Insurance contributions don’t count
There is also the option to apply over the phone by calling the Pension Credit claim line on 0800 99 1234.
The second instalment of the cost of living payment of £300 is to go out in autumn 2023 while the final payment of £299 is going out in spring 2024.
Pension Credit can boost a person’s income by more than £3,500 a year. The benefit provides a top up to a person’s income to £201.05 a week for single claimants and up to £306.85 a week for couples.
Claimants can get additional payments depending on their situation such as if they care for an adult.
People on the benefit can also access other means of Government support, such as free TV licences for claimants aged 75 and help towards healthcare costs.
Martin Lewis urged Britons to check if they can claim Pension Credit ahead of the deadline on ITV’s This Morning this week.
He said: “I have a rule of thumb and my rule of thumb is if you’ve got a total weekly income of under £220, it is worth checking whether you’re entitled to Pension Credit.
“That’s what I always say. I don’t say you’re going to get it. I say that’s when it’s worth checking. And if you are a pensioner couple with income under £320, it is worth checking.”
The full basic state pension is currently £156.20 a week while the full new state pension is £203.85 a week.
