With those on pension credit set to receive the first £326 cost of living support payment from tomorrow (14th July), Aegon stresses there’s ‘never been a better time’ to check your eligibility.
Steven Cameron, Pensions Director at Aegon comments: “From tomorrow, 14th July till the end of the month, households on means tested benefits will receive the first £326 payment of the government’s £650 support package to help tackle the cost-of-living crisis*. This will provide much needed financial support for over eight million of the most vulnerable households.
“Those above state pension age receiving pension credit will be eligible for this payment alongside a wider package which includes a boost to the winter fuel allowance later this year. The total package of cost-of-living support from the government means low-income pensioner household could receive a up to £1,500 this year in additional one-off payments**. This will help to plug the gap from April’s 3.1% rise in the state pension which falls far short of inflation, currently sitting at 9.1%.
“Pension credit can be a very valuable benefit, with some receiving more than £3,300 a year***. While over 1.4 million UK pensioners are receiving some level of credit, alarmingly, around 850,000 who it’s believed are eligible are not claiming it***. Not only does this mean they are missing out on existing financial help, they’re also cutting themselves out of the government’s £650 cost of living support payment.
“To be entitled to the July instalment of cost of living support, you needed to be receiving a qualifying means tested benefit on 25 May, or have begun a claim by then which is later successful. So while those not already claiming pension credit may have missed out on the first instalment, there may still be time to qualify for the second instalment to be paid later this year. The eligibility date for the second instalment hasn’t yet been announced but deferring could mean you lose out. There’s simply never been a better time to apply for pension credit.
“Aegon is urging the Government to announce eligibility rules well in advance of the cut-off date so people have time to put in their claim.”