No one can escape rising prices but one group that will be significantly worse off is pensioners. They could lose £1,500 over the next two years as they are hit by a triple whammy of real terms cut to their pension, rising inflation and the national insurance levy.
Although pensioners will benefit from a 3.1 percent increase in their state pension from next month, in real terms they will be left with less money in their pockets.
Rising inflation and changes to the national insurance levy will mean that they are worse off as many already struggle to pay soaring energy bills and put food on the table.
At the same time almost a million pensioners aren’t claiming all the state benefits they are entitled to.
Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, said now is not the time to suffer in silence.
She said: “Pension Credit take-up continues to inch up but there are still up to 850,000 pensioner households missing out on this vital benefit.
“Pension Credit boosts the income of the poorest pensioners and acts as a valuable gateway to other benefits such as help with heating bills and NHS treatment.”
Charities estimate the average Pension Credit claimant could get £3,000 extra each year in financial support from the Government.
Pension Credit comes in two parts:
Guarantee Credit tops up weekly income to a guaranteed minimum level:
- £177.10 for individuals
- £270.30 for couples
Savings Credit is for people who have some savings or income higher than the basic State Pension. It works out at:
- £14.04 extra per week if for single people
- or £15.71 extra per week for couples.
Pension Credit is not paid automatically so anyone who is state pension age and thinks they may qualify, should apply.
Whatever happens they won’t be worse off.
Nearly 1.5 million households across the UK receive Pension Credit and pensioners who own their own home may still be eligible for Pension Credit.
Which other benefits does Pension Credit enable?
- Housing Benefit
- Support for Mortgage Interest
- Council Tax Reduction
- A free TV licence if they are aged 75 or over
- Help with NHS dental treatment, glasses and transport costs for hospital appointments
- Help with heating costs.
To apply Britons should search Pension Credit on Gov.uk.