Over the last few weeks, the Department for Work and Pensions ( DWP ) has urged pensioners to check their entitlement to Pension Credit and make a claim if they are eligible.
This is because Pension Credit is a retrospective benefit and can be backdated by three months as long – as the applicant was also eligible to receive it during that time.
Due to this, if someone claims Pension Credit now then they will automatically become eligible to receive a cost of living payment.
The cost of living payment is worth £324 and is the second of two instalments.
In order to receive this cash, you need to apply for Pension Credit and backdate your claim by today (December 18).
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The second payment was given to those receiving, or later found to be eligible for, a qualifying benefit between August 26 and September 25 2022.
If your Pension Credit claim can be backdated to this timeframe, and you apply today, then you should receive the £324 cost of living cash.
Commenting on the Pension Credit cut-off date, minister for pensions Laura Trott said: “The run up to Christmas is always a busy time, but one thing to make sure that’s on your list over the coming days is to find out whether you or your loved ones could be eligible for Pension Credit.
“Pension Credit can make a real difference and I am determined to make sure this support – worth an average of £3,500 per year – is reaching everyone who needs it.”
The DWP is not the only group urging pensioners to check their entitlement for Pension Credit.
Charity Age UK has also stepped up its calls reminding pensioners that claiming could open the door to a wide range of additional support.
This includes extra help with energy bills and other essentials such as housing costs and council tax discounts.
You could also claim a free TV licence if you’re aged 75 and older.
Around 1.4 million pensioners already receive Pension Credit in the UK, but according to the DWP around 850,000 don’t receive it, despite being eligible.
The DWP says nearly £2billion worth of government cash is set aside for Pension Credit purposes but is not being claimed.
Pension Credit comes in two parts: guarantee credit, which is payable to those whose weekly income is below £182.60 if single, or £278.80, if they have a partner.
The payments are then made to bring someone’s pension income up to that level.
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The second part is the savings credit which is an extra payment for those who have savings or whose income is higher than the basic state pension, but is only available to those who reached state pension age before 6 April 2016.
It is worth £14.48 per week for single people, or £16.20 for those in a couple and it is intended to top up pensioners’ retirement income.
You may also be entitled to additional elements of Pension Credit if you’re a carer, severely disabled, or responsible for a child or young person.
You can check if you are eligible using the Government’s Pension Credit calculator, this will let you know if you can claim and how much you could likely get.
To use the calculator, which is on GOV.UK, you will need to have details on your earnings, benefits and pensions, and savings and investments.
You will also need the same details for your partner if you have one.