Cost of Living Payment

Age UK urges all pensioners on a low income to put in a claim for Pension Credit now.

Older people have until Thursday 18^th August to put in a claim for Pension Credit in order to qualify for the Government’s £650 cost-of-living payment. Age UK is urging all older people who are struggling to make ends meet and who are not already in receipt of Pension Credit to put in a claim without delay, so they don’t risk missing out.

Announced as part of a support package in May, the government’s Cost of Living Payment will be paid to those in receipt of Pension Credit (and other qualifying benefits) in two lump sums of £326 and £324 – the first will be paid automatically between mid-end July and the second will be paid in the Autumn.

To be eligible for the first lump sum, older people must have been entitled to a Pension Credit payment (or later found to be entitled to a payment) in the period 26 April – 25 May 2022. Because a successful application for Pension Credit can be backdated by three months, those who begin the claiming process before 18^th August are guaranteed to meet the eligibility criteria.

That’s why Age UK is stepping up its call for people to put in a claim for this essential benefit. As well providing a much-needed income boost and automatically qualifying them for the government’s Cost of Living Payment, Pension Credit also opens the door to a wide range of additional support including:

• A Cold Weather Payment of £25, paid automatically when the average temperature is 0°C or below over seven consecutive days
• £140 off electricity bill thorough the Warm Home Discount Scheme (if eligible)
• A free TV licence (if over-75)
• Free NHS dental treatment and help towards the cost of glasses and travel to hospital
• Help with Council Tax and rent
• Cheaper phone and home broadband deals
• Reduced water bills
• An extra amount of Pension Credit for some carers worth up to £37.70 a week

Those in receipt of Pension Credit, which can be backdated up to three months, tops up the weekly income of a single pensioner to £182.60 or a pensioner couple to £278.70^[iv], (or higher in some circumstances).  Pension Credit comes in two parts: Guarantee Credit and Savings Credit and it’s separate from the State Pension.

Yet despite considerable financial benefits, a third (34 per cent) of pensioners eligible to claim Pension Credit are still missing out – a huge concern, especially as the cost of living continues to rise. The government’s own figures show that 770,000 eligible pensioner households (single people or couples) are not receiving their Pension Credit payments, worth around £1.5 billion every year^[v] – an average of £1,900 a year, per household.

You can call us on 0161 788 7300 and we can directly refer you to Citizens Advice Salford.

You can also contact Age UK's free Advice line on 0800 169 65 65 for advice and to check you are receiving all the financial support available to you.

Age UK also hosts a free and anonymous Benefits Calculator, available via www.ageuk.org.uk which can provide an estimate of the benefits that you may be entitled to.

To make a claim for Pension Credit, call the DWP Pension Credit claim line direct on 0800 99 1234 or visit www.gov.uk/pension-credit/how-to-claim.  It can be claimed by phone and online.