{"id":8007,"date":"2022-03-30T13:58:00","date_gmt":"2022-03-30T13:58:00","guid":{"rendered":"https:\/\/www.mouthymoney.co.uk\/?p=8007"},"modified":"2025-03-03T10:12:14","modified_gmt":"2025-03-03T10:12:14","slug":"two-important-state-benefits-many-older-people-are-missing-out-on","status":"publish","type":"post","link":"https:\/\/www.mouthymoney.co.uk\/pensions\/two-important-state-benefits-many-older-people-are-missing-out-on\/","title":{"rendered":"Two important state benefits many older people are missing out on"},"content":{"rendered":"\n
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Mouthy Money blogger Nick Daws looks at two important state benefits that those of pension age can claim, and why some don’t.<\/strong><\/p>\n\n\n\n

As we all know, there\u2019s a cost of living crisis at the moment. Many older people are especially vulnerable to rising prices, as they must survive on a fixed, limited income that almost certainly isn\u2019t keeping up with inflation.<\/p>\n\n\n\n

So today I want to spotlight two important welfare benefits for retired people that huge numbers are currently missing out on despite being eligible. They are pension credit and attendance allowance. I\u2019ll cover each in turn.<\/p>\n\n\n\n

Important state benefits: pension credit<\/strong><\/h2>\n\n\n\n

Around one million retirees who would be entitled to this benefit aren\u2019t claiming it, according to the government\u2019s own figures. They are therefore missing out on an important boost to their pension.<\/p>\n\n\n\n

Pension credit comes in two parts: guarantee credit and savings credit. Guarantee credit boosts your weekly income to \u00a3182.60 if you\u2019re single or \u00a3278.70 if you\u2019re a couple (all figures correct as from 6th April 2022). You should be eligible for guarantee credit if you have reached state pension age and your total income is less than these amounts (even if you own your own home). <\/p>\n\n\n\n

If you have under \u00a310,000 in savings and investments this will not be taken into consideration. If you have over \u00a310,000, it will be assumed that you earn \u00a31 a week per \u00a3500 of savings and investments. This will be added to your total income when working out your eligibility for guarantee credit.<\/p>\n\n\n\n

Savings credit is meant as a reward for those who have saved for their retirement. It\u2019s worth up to \u00a314.48 a week for a single person or \u00a316.20 for couples. <\/p>\n\n\n\n

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To qualify, you must have a minimum income of \u00a3158.47 a week if you\u2019re single, and \u00a3251.70 a week for a couple. Savings credit is only available to people who reached the state pension age before 6 April 2016. <\/p>\n\n\n\n

It\u2019s worth adding that if you pay mortgage interest or have other housing costs, have caring responsibilities, are responsible for a child, or are severely disabled, you may be entitled to more pension credit. If you receive attendance allowance (see below) or carers credit, for example, this may boost the amount you\u2019re entitled to. <\/p>\n\n\n\n

The rules surrounding all this are complicated, but the government has provided a free online calculator<\/a> you can use to work out whether you qualify and how much you might get. This is for guidance only, however. You can\u2019t apply via the calculator and there is no guarantee you will receive the amount it shows you.<\/p>\n\n\n\n

To actually apply you will need to phone the DWP\u2019s pension credit helpline on 0800 991234. You will need your National Insurance number, information about your income, savings and investments and your bank account details. The person you speak to will then take you through the application process. <\/p>\n\n\n\n

As well as the money \u2013 which can amount to thousands of pounds a year \u2013 if you receive pension credit you will be entitled to a range of additional benefits. These include:<\/p>\n\n\n\n