Time is running out for older people across the UK to claim Pension Credit and secure an additional £650 cost-of-living payment, according to charity Age UK. The organisation is urging all pensioners on a low income to put in a claim for Pension Credit now, highlighting that many risk missing out on this vital financial support if they do not act swiftly. The deadline for claiming the payment is fast approaching, with the first instalment having already been paid to eligible recipients.
Pension Credit is a top-up benefit designed to help alleviate financial pressures for pensioners living on a low income. It can boost a single person's weekly income to at least £182.60 and a couple's to £278.70. Beyond the direct financial uplift, claiming Pension Credit also unlocks access to a range of other crucial benefits, including help with housing costs, council tax reductions, and, for those over 75, a free TV licence. This broader package of support can significantly ease the burden of everyday expenses for vulnerable households.
The £650 cost-of-living payment, announced by the government to help households cope with soaring inflation, is being paid in two instalments. The first payment of £326 was issued between 14th and 31st July for those on DWP benefits, and between 2nd and 7th September for those on HMRC tax credits. The second instalment of £324 is expected later in the autumn. To qualify for the full £650, individuals must have been entitled to a Pension Credit payment for any day during the qualifying period of 26th April to 25th May 2022.
Age UK estimates that hundreds of thousands of eligible pensioners are currently missing out on Pension Credit, with many unaware they could be entitled to it. This oversight not only deprives them of the weekly income boost but also the additional £650 cost-of-living payment and other associated benefits. The charity emphasises that even a small amount of Pension Credit can open the door to this wider support network, making a significant difference to household budgets during the current economic climate.
The government has committed £37 billion this year to support households with the rising cost of living, with the £650 payment forming a key part of this package. With inflation remaining stubbornly high, impacting everything from energy bills to food prices, these payments are designed to provide a much-needed buffer for those most susceptible to economic pressures. The Bank of England has also been closely monitoring inflation, with recent interest rate hikes aiming to bring it back towards its 2% target, though this has implications for mortgage holders and savers alike.
For those unsure about their eligibility or how to apply, Age UK provides resources and a free helpline to assist with the application process. Given the approaching deadline for the cost-of-living payment, prompt action is essential to ensure older people receive the support they are entitled to.
Source: Age UK