THOUSANDS of pensioners will get letters this month about their move from Universal Credit or Pension Credit.
This is the latest tranche of notices going out, as the government is in the process of moving over two million people across from legacy benefits this year.
1
People above state pension age who have previously got tax credits are being warned that their letters should arrive in August.
You need to respond to the notices within three months or your benefits will abruptly stop, and you could even end up having to repay some of the credits you received this year.
You might also lose out of important transitional arrangements that are designed to protect people moving across. For instance, by allowing people moving to Universal Credit to have more savings than the official limit.
The Department for Work and Pensions (DWP) has said that 184,120 individuals lost their benefits after failing to act on migration notices received between July 2022 and March 2024.
However, the government has also warned that it is important that you do not do anything until you receive your letter, which is called a Universal Credit Migration Notice.
If you put a Pension Credit or Universal Credit application in before then, you could miss out on the transitional protections.
The notice will tell you which benefit you’re moving across and gives you a deadline date to apply by.
If you’re under the state pension age, you’ll be moved to Universal Credit and should have already received your letter.
If you’re over state pension age, you’ll be shifted across to Pension Credit.
But if you’re in a mixed age couple, where one of you is over state pension age, and the other is under it, you should both be able to claim Universal Credit.
If you fail to respond to your migration notice within three months of receiving it, you could miss out on £1,000s worth of cash to help with essential bills and the general cost of living.
What is Pension Credit and who qualifies?
Pension Credit is a benefit which gives you extra money to help with your living costs if you’re on a low income in retirement.
It can also help with housing costs such as ground rent or service charges.
You may be able to get extra help of you’re a carer, have a disability, or are responsible for a child.
It also opens up access to lots of other benefits such as the warm home discount scheme, support for mortgage interest, council tax discounts, free TV licences once you’re over 75, and help with NHS costs.
To qualify, you need to be over state pension age and live in England, Scotland or Wales.
How does the state pension work?
AT the moment the current state pension is paid to both men and women from age 66 – but it’s due to rise to 67 by 2028 and 68 by 2046.
The state pension is a recurring payment from the government most Brits start getting when they reach State Pension age.
But not everyone gets the same amount, and you are awarded depending on your National Insurance record.
For most pensioners, it forms only part of their retirement income, as they could have other pots from a workplace pension, earning and savings.
The new state pension is based on people’s National Insurance records.
Workers must have 35 qualifying years of National Insurance to get the maximum amount of the new state pension.
You earn National Insurance qualifying years through work, or by getting credits, for instance when you are looking after children and claiming child benefit.
If you have gaps, you can top up your record by paying in voluntary National Insurance contributions.
To get the old, full basic state pension, you will need 30 years of contributions or credits.
You will need at least 10 years on your NI record to get any state pension.
If you have a partner, you need to include them on your claim.
Pension Credit tops up:
- your weekly income to £218.15 if you’re single
- your joint weekly income to £332.95 if you have a partner
However, even if your income is higher, you might still qualify if you have a disability or caring responsibilities.
There is also another element to Pension Credit called savings credit. To get this, you need to have saved some money towards your retirement.
You can get an extra £17.01 a week for a single person or £19.04 a week for a married couple.
If you have more than £10,000 in savings, the government uses a calculation to work out how much it adds to your income.
Every £500 over £10,000 counts as £1 income a week. For example, if you have £11,000 in savings, this counts as £2 income a week.
What is Universal Credit and who qualifies for it?
Universal Credit is a monthly payment to help with your living costs.
To claim, you typically need to:
- live in the UK
- be aged 18 or over
- be under State Pension age
- have £16,000 or less in money, savings and investments
However, if you are moving across from tax credits, the savings rule will not apply for the first year.
After 12 monthly assessment periods, normal eligibility rules will apply and you will not be eligible for Universal Credit if you still have more savings than this limit.
If you have a partner, you need to include them on the application.
How much money you’ll get depends on your personal circumstances, but the monthly standard award is £393.45 for a single person over 25 and £617.60 for a couple who are both over that age.
You get additional amounts if you have children under 16, or under 19 in approved education.
You get £333.33 for your first child if they were born before April 6, 2017, and £287.92 if they were born after that date. For a second child you get another £287.92 per month.
If you have a disability or health condition, or if your child does, there are extra top ups you can get in your Universal Credit award.
If you rent, you can also get help towards those costs and any service fees you might pay.
If you have over £6,000 in money, savings and investments, your payment will be reduced by £4.35 for every £250 you have between £6,000 and £16,000. Another £4.35 is taken off for any remaining amount that is not a complete £250.
However, if you’re moving across from tax credits, the savings limits will not apply for the first twelve months.
