MARTIN Lewis has issued an urgent message to hard-up households as the £300 cost of living payment lands in bank accounts.
Speaking on Good Morning Britain this morning the consumer champion urged eligible Brits to backdate benefits claims to get the cash.
Martin explained that the next instalment of the cost of living payment is being given out from today.
It's the second sum to be given out of the £900 in total to help those struggling with rising costs.
The cash is being dished out from today until November 19.
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Crucially, you will need to have been paid one of the qualifying benefits between August 18 and September 17 to be eligible.
But, as Martin pointed out, there is a way around this for Pension Credit claimants.
Speaking live he said: "The most important message I have for people about the cost of living payment, it is really important, well on most benefits you either get it or you don't at this point.
"But there's a benefit called Pension Credit, which is specifically for lower income pensioners and on that one you can backdate the claim for three months.
"It means that if you don't get Pension Credit and you're eligible for it, you can still get that extra £300 even if you were to claim now, or next week, or the week after."
If you're eligible you have until December 8 to make a claim for Pension Credit over the phone and until December 10 to make a claim online to get the £300 cost of living payment.
This is provided you were of state pension age between August 18 and September, 17 this year.
It doesn't matter if you were only eligible for a day - as long as this day was within the qualifying period you'll get the cost of living payment.
This will ensure that any payments can be backdated and fall within the qualifying period for the £300 cost of living payment.
Unfortunately, it's no longer possible for these applicants to get the first £301 payment, but it's still possible to get the next two payments worth £599.
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Martin went on to add that there are nearly a million pensioners missing out on the "absolutely crucial" benefit.
The most recent figures show that up to 880,000 families who are entitled to receive Pension Credit are not claiming it.
It means that there is around £2.1billion of available Pension Credit going unclaimed.
On average, the amount households are missing out on is around £2,200 a year - but the payments can also be as much as £3,500.
Martin continued to say that his rule of thumb on it, which isn't exact, is that if you're a single pensioner earning less than £220 a week or a pensioner couple earning less than £320 a week you should check out if you could claim.
He said: "Call the pension credit helpline and ask them if you're eligible, I'm not saying you will be, I'm saying you may be, and it's worth checking because that could be worth thousands of pounds and this current cost of living payment - you may still get it even if you don't claim Pension Credit yet."
Who is eligible for pension credit?
Anyone over the state pension age living in England, Scotland or Wales is eligible for pension credit.
The state pension age is currently 66 for both men and women.
To qualify, you'll need to have a weekly income of less than £201.05 for single people or £306.85 for couples.
Your income is worked out taking into account various elements including:
- Your state pension
- Any other pensions you have saved, for instance, workplace or private pension savings
- Most social security benefits, for example, carer’s allowance
- Any savings or investments worth over £10,000
- Earnings from a job
The calculation does not include:
- Attendance allowance
- Christmas bonus
- Disability living allowance
- Personal independence payment
- Housing benefit
- Council tax reduction
If your income is too high to get pension credit, you may still get some savings pension credit, so it's worth checking.
It used to be the case that couples, where one person was over state pension age, could claim, but new rules now mean that both people in a couple must be over retirement age to apply.
This means if you're single and move in with a partner who is younger than the state pension age, you will stop being eligible.
But if you're already receiving pension credit under the old system it won't stop unless your circumstances change.
How much can you get in pension credit?
There are two parts to the pension credit and pensioners can be eligible for one or both.
- Guarantee credit - tops up your weekly income to a guaranteed minimum level. This is £201.05 a week if you're single and £306.85 a week for married couples.
- Savings credit - provides extra money if you've saved money towards retirement. You can get an extra £15.94 a week for a single person or £17.84 a week for a married couple.
You may also get additional pension credit if you are disabled, have caring responsibilities or have to pay certain housing costs such as mortgage interest payments.
How do I apply
You can apply for pension credit four months before you reach state pension age.
Applications for pension credit can be made on the government website or by ringing the pension credit claim line on 0800 99 1234.
You will need:
- National Insurance number
- Information about any income, savings and investments you have
- Information about your income, savings and investments on the date you want to backdate your application to (usually 3 months ago or the date you reached state pension age)
Your partner will also need to provide their information if you have one.
Meanwhile, millions of households are set to receive the £300 free cash from today - and they should look out for a specific code.
Plus, we reveal all the benefits that don't qualify for the cost of living payment – and what you can claim instead worth £600.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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