Can YOU claim pension credit that also gets you a free TV licence?

MORE than a million pensioners can claim a State pension benefit that would also get them a TV licence for nothing.

About 1.3million people are estimated to be entitled to pension credit but fail to claim. Many believe they are not eligible for this top-up because they have savings or own their home, but this is not necessarily so. About 2.5 million people already receive it and nine in 10 applications are successful.

Unless they claim, thousands face falling victim to next year’s penalty on pensioners – the stripping of free TV licences from the over-75s.

What is pension credit?

PENSION credit tops up the State pension for those who need it. It comes in two parts. The main part, called guaranteed credit, is for the poorest pensioners. If your weekly income is below £167.25 for individuals and £255.25 for couples, the credit tops you up to this level.

The second part is savings credit, which is available to those who have savings and reached State pension age before April 6, 2016. For this, the maximum sums are £13.72 a week for individuals and £15.35 for couples – but the greater your savings the less you will get. You do not pay tax on pension credit.

Who can claim?

YOU must live in England, Scotland or Wales and have reached State pension age. The rules for couples submitting a claim changed in May. Now, both you and your partner must have reached State pension age.

If only one of you is old enough, he or she must also be in receipt of housing benefit for OAPs. If one of you reached pension age before May 14, you can submit a backdated claim until August 13 and still qualify. If you get pension credit and your entitlement stops, you will need to meet the new requirements to apply again.

Is it means-tested?

YES. You can apply for the guaranteed credit part of the benefit only if your total income is below £167.25 for individuals and £255.25 for couples. This takes into account: State pensions, other pensions, most social security benefits (for example Carer’s Allowance) and savings. The first £10,000 of savings don’t count. Then, every chunk of £500 above this level is counted as £1 for the income calculation. The total will exclude: attendance allowance, Christmas bonus, disability living allowance, personal independence payments and housing benefit.

You may still qualify if your income is higher but you have a severe disability, or are a carer.

For savings credit, single people must have a minimum income of £144.38 a week and couples £229.67 a week.

There isn’t a limit on how much you have in savings, but if you have over £10,000 you will receive less. To work out your entitlement, visit: gov.uk/pension-credit-calculator or call the Government’s helpline on 0800 731 0469.

How do I claim?

DUE to means-testing, it’s hard to know if you qualify or what you’ll get. But you have nothing to lose by submitting an application, and a lot to gain. The fastest way is by calling 0800 99 1234. Have your bank account details, National Insurance number and information on any income, savings and housing costs to hand. You can apply up to four months before reaching State pension age. If you are already eligible claims can be backdated for up to three months. Citizens Advice and Age UK can help. Call Age UK on its free advice line 0800 169 6565.