Money
Tax and benefits
Feeling the benefit
Tens of thousands of people are missing out on free cash from the Government by failing to claim benefits. Recent figures revealed that a more than £4 billion of benefits payments a year is waiting to be claimed, so experts are urging you to collect what is rightfully yours, writes Holly Thomas
Billions of pounds worth of benefits is available to help older people wipe out their council tax bills, offer a welcome top-up to your basic state pension - and even money towards dental bills.
But many of us are put off by the thought of filling in forms or too embarrassed to make a claim, so the cash is left languishing in Gordon Brown's coffers. Claiming full entitlements could improve your quality of life, not to mention give you a bit of extra cash to treat yourself and your family.
More than two million people over 60 could get their council tax reduced if they applied. If you have less than £6,000 in savings then you pay no council tax at all, for example.
If your savings are more than £6,000 but less than £16,000 you may still get all your council tax paid depending on exactly how much your income and savings are.
Figures for those claiming help with their income through pension credit or with rent through housing benefit are low. Claiming pension credit, a means-tested top up to the state pension, can open the door to other benefits such as free dental check-ups and and eye tests.
"Many people are worried about the complexity of claiming for benefits, and could even be embarrassed about signing up," says independent financial adviser Tom McPhail.
"Although the benefits system is complicated, there is help available and at the end of the day - it's free money. There's no stigma these days because those who pay taxes and National Insurance all their lives are keen to get something back."
If you have previously been turned down for a claim, you might now be eligible so it is worth filing a new application. You may be eligible under new benefit thresholds which - like the state pension - increased in April in line with the rate of inflation.
If you apply for pension credit and are eligible, you may receive a payment backdated for up to 12 months from the day you were first entitled to the date you first applied, and council tax benefit can be backdated for a year for people over 60, so you could have a nice windfall soon.
Go to www.entitledto.com to see what benefits you might be missing out on. Or you can call the Pension Credit helpline on 0800 99 1234 or www.thepensionservice.gov.uk
* Holly Thomas is an award-winning financial journalist and Deputy Personal Finance Editor at the Daily Express and Sunday Express. Her opinions are for general information only. Always seek independent financial advice.
