A warning has been issued to households who could miss up to £3,300 a year.
While more than 1.4 million pensioners benefit from the Pension Credit, many do not claim this additional financial assistance which can also be a gateway to other benefits.
An estimated £1.7 billion of the unclaimed benefit comes at a time when the cost of living crisis is hitting those on low or fixed income particularly hard.
Here’s everything you need to know about applying for pension credit.
Who can claim Pension Credit?
Pension Credit is designed to help cover day-to-day living costs for people over retirement age and on low incomes.
You must live in England, Scotland or Wales and be of statutory retirement age to be eligible for pension credit.
It can be claimed by phone and online, and an online pension credit calculator can help retirees check if they are likely to be eligible and provide an estimate of what they might receive.
Further information is available on the government website or by calling 0800 99 1234.
How much money will I receive?
Pension Credit tops up a person’s weekly income to a minimum of £182.60 per week for single pensioners and £278.70 for couples.
You can get additional amounts, called “warranty credit”, if you have other responsibilities and fees.
Martin Lewis, founder and chairman of MoneySavingExpert.com, said pensioners who owe a payment could receive up to £3,300 a year.
He said: “In the midst of the cost of living crisis, it is a national tragedy that living for a million pensioners does not benefit from a major increase in their income.
“My general rule of thumb is: if you (or someone you know) are aged 66 or over and your total income is less than around £200 a week, log on or call the pension credit to see if you qualify for a payment of up to £3,300 a year.
“I’m not saying everyone will have it, but many will, and it only takes a few minutes to find out. So don’t delay, just call.
‘And not only is this money serious, it’s also often a bridging fee which means you are eligible for a range of other help, such as council tax cuts, the additional £650 funding aid for energy, discount on hot houses, housing allowance, dental and optical care and, for those over 75, a free TV licence.
Caroline Abrahams, Charity Director at Age UK, added: “Any older person on a low or modest income who is struggling with their bills, or would like to know more about any additional income that may be available, can also contact Age UK for advice. help to check all their rights and see if they are among the missing ones.
“People can call the Age UK advice line on freephone 0800 169 65 65, contact their local Age UK office or visit www.ageuk.org.uk.”
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