Pensioners may have been disappointed at the lack of policies to help them in the Spring Budget but there are several changes that could help their finances.
Mark Screeton, CEO at SunLife, encouraged older Britons to read up on the changes announced by Chancellor Jeremy Hunt and to see if they can increase their income as the cost of living continues to rise.
He pointed first to the extension of the Household Support Fund, which provides funding for local councils to give out to those in need.
Mr Screeton told Express.co.uk: “The six month extension to the £800million Household Support Fund, which helps low income households with food and fuel poverty, could benefit some retired households.
“Our Life Well Spent Report reveals that almost 20 percent of pensioners have a household income under £13,500, so could be eligible for support.”
The fund is aimed at providing support to those struggling to pay their energy and water bills, or towards food costs.
Councils may give out the funds as cash payments or through providing vouchers. You can contact your local authority to find out what support is on offer.
Mr Screeton said there could also be a positive for pensioners who are grandparents, as Child Benefit is effectively being expanded to include parents on higher incomes.
The income threshold for the high income Child Benefit charge – after which a person starts to pay back the benefit – is increasing from the current £50,000 a year to £60,000.
The top income limit after which a person has to pay back the entirety of the benefit is being extended to £80,000.
Mr Screeton said: “The changes to child benefit could also have a knock-on-effect for the 52 percent of grandparents who provide regular childcare for their grandchildren.
“Our 2023 grandparents study found grandparents spend an average of 22 hours and £80 a week caring for their grandchildren.
“So if their grandchildren’s parents are amongst the half a million families that the Government estimates will benefit from the change, they may not be needed to provide as much care – or spend as much of their own money on providing that care – as before.”
Turning to other support available for pensioners, Mr Screeton encouraged people to check if they are missing out on any benefits.
He said: “The first thing pensioners who are struggling to make ends meet should do is check whether they are entitled to any additional benefits.
“Pension Credit is a top up available for single pensioners on below £201.05 a week and couples who have an income of less than £306.85 a week.
“For those who do receive Pension Credit, there are some other benefits available including council tax reduction, housing benefit (for those renting – according to SunLife’s data, 38 percent of pensioners do not own their own home) and Cold Weather Payments.”
Pensioners could also get a big income boost by tracking down a lost pension pot, with one in four pensions in the UK currently going unclaimed according to asset recovery group Gretel.
The Spring Budget also included fresh policies about pensions investments, with reforms setting out to boost payouts and increase investment in UK companies.
Mike Ambery, retirement savings director at Standard Life, said: “The jury is out as to whether this week’s Budget will leave people better off by the time they retire.
“On the one hand changes to Child Benefit will put money back in the pockets of many families and the planned introduction of a British ISA adds another saving allowance that some will be able to take advantage of.
“Other initiatives like the introduction of the Value for Money framework for pensions will give people greater transparency over whether their pension is giving them a good deal.
“The downside is that despite an National Insurance cut, the tax burden remains high with growing numbers of people moving into the higher rate band.
“The best advice when it comes to retirement planning is to start saving as soon as you’re able to and to make sure you’re taking advantage of your workplace pension which your employer will pay into too.”
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