New details on benefits for state pensioners have been issued after the matter was raised in Parliament. In response to a question from Labour MP Mary Kelly Foy regarding support for 1950s-born women affected by changes to the retirement age, the Department for Work and Pensions (DWP) detailed options for those beyond State Pension age.
Pensions Minister Torsten Bell, in a written reply, stressed the DWP‘s dedication to assisting pensioners, underlining that State Pensions will continue to grow each year under the Labour Government thanks to the Triple Lock agreement.
The Triple Lock mechanism guarantees that both New and Basic State Pensions increase annually based on whichever is highest: the average earnings growth between May to July, the Consumer Price Index (CPI) in the year up to September, or a fixed rate of 2.5 percent. From April 7th, State Pension payments are due to bolster by 4.1 percent reports the Daily Record.
Bell disclosed: “We are committed to supporting pensioners – with millions set to see their yearly Basic State Pension rise by around £1,500, or their New State Pension rise by around £1,900, over this parliament, through our commitment to the Triple Lock.”
He also shed light on Pension Credit, stating, “Pension Credit provides vital financial support for pensioners, including women. It tops up state and private pensions to a guaranteed weekly minimum – the Standard Minimum Guarantee, which, for single pensioners, is set to increase from £218.15 to £227.10 in April 2025.”
The DWP Minister has underscored their commitment to raising Pension Credit uptake, noting that despite a staggering 760,000 pensioners missing out on an annual boost of over £4,200, a massive awareness campaign has been instigated because “we want all eligible pensioners to claim what they are entitled to”. Moreover, the UK Government is enhancing direct financial support for low-income senior citizens via the Warm Home Discount scheme, with plans to widen access next winter to assist more than 6.1 million households.
Benefits for people over State Pension age
Benefits and discounts available in retirement include:
- Pension Credit
- Help with Council Tax
- Travel and TV benefits
- Benefits for war widows and widowers
- State Pension
- Health benefits – Attendance Allowance, Pension Age Disability Payment
- Help with heating costs – eligibility for some may require a relevant qualifying means-tested benefit
Besides, pensioners in England and Wales benefit from £25 Cold Weather Payments, while local councils across the UK present additional financial aid for living expenses, detailed on the Scottish Government’s website.
Mr. Bell also emphasised that “for those people who are unable to work but who are not yet eligible for pensioner benefits because of their age, financial support is available through the welfare system.”
State Pension
The State Pension is not means-tested, but the sum you receive is contingent on the number of qualifying years of National Insurance Contributions or credits you’ve amassed. A minimum of 10 years’ worth is required for any State Pension payment and approximately 35 for the maximum amount – this could be higher for individuals who were ‘contracted out’.
More details can be found here.
Pension Credit
Currently, Pension Credit benefits 1.4 million people across the UK, including over 125,000 in Scotland, by providing additional funds to assist with living expenses if they are above State Pension age and have a low income. It’s a ‘passport’ benefit that offers an average of around £4,200 each year in financial aid, serving as a ‘gateway’ to Council Tax reductions, assistance with housing costs, NHS discounts, and free TV Licences for those over 75.
You can use the Pension Credit Calculator on GOV.UK for yourself or a family member to ensure you’re receiving all the financial support you’re entitled to. The Pension Credit helpline can also be reached at 0800 99 1234.
Council Tax Support
Whether you own your home or rent, you may be eligible for assistance from your local authority to help cover your Council Tax. Contact your local council to inquire about support with Council Tax.
Insulation and heating schemes
There are a number of schemes available that offer insulation and heating improvements to make homes more energy efficient. If your home is poorly insulated or lacks a functioning central heating system, and you’re receiving any income-related benefits including Pension Credit, you may be eligible.
Other help available
Travel concessions are available for those over 60 or disabled.
If you were born on or before September 2, 1929, and are a British national, you could qualify for a free passport. More details and application procedures can be found on the GOV.UK website.
Unless you receive Pension Credit, you will now need to pay for your TV licence. However, people over State Pension age who are registered as severely sight-impaired or blind may be able to get the TV Licence for half price.
Benefits are also available for war widows and widowers. If your spouse or civil partner passed away, was injured or fell ill due to their service in Her Majesty’s (HM) Armed Forces, or during a time of war prior to April 6, 2005, you may be eligible for a War Widow’s or Widower’s Pension.
Should you have suffered an injury, illness or even death as a result of serving in a conflict post April 6, 2005, you could be eligible for compensation via the Armed Forces Compensation Scheme. Additionally, if your disability is a direct result of your service in the Armed Forces and you require medical treatment, assistance towards your medical costs may be provided for your accepted disability.
On the other hand, if your injury or disability occurred while serving in the Armed Forces prior to April 6, 2005, additional support towards your pension can be provided.
