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With the cost of living continuing to rise, as well as the loss of the Winter Fuel Payment for many, it’s not surprising that many people are struggling financially. You may be eligible for benefits to ease the financial strain. Things like ill health, caring responsibilities or bereavement can have a negative impact on finances – but help might be available.
Around a fifth of over-50s live in poverty, according to Age UK London’s Poverty Report 2024, rising to 29% of pensioners who are single and live alone in the capital. Many will rely on the state pension alone to fund their retirement. Even those with a workplace pension or other source of income may struggle to make ends meet. If that applies to you, it's worth checking whether you could claim benefits to make things a little easier.
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You may be entitled to some financial help if under state pension age (currently 66 but rising to 67 by 2028) and either not working or on a low income. The main support that could help is Universal Credit, which is an benefit targeted at people in a range of different circumstances.
Alicia Harries, information and advice development manager at charity Independent Age, says: “The amount you receive depends on whether you are working, if you have children, how much your rent is, whether you are carer or have an illness, and other factors. It’s a very personalised benefit.”
You must have savings or investments under £16,000 to claim – not including your pension or home – and be below state pension age, as well as meeting other eligibility criteria.
If you’re working fewer than 16 hours a week or are unemployed, and your National Insurance contributions are up to date from the two previous tax years, you may also be able to claim New Style Jobseeker’s Allowance for six months, alongside Universal Credit or on its own.
Universal Credit could apply in a number of situations, including if you:
If illness is affecting how much you can work, you may qualify for New Style Employment and Support Allowance (ESA), which you can claim with or without Universal Credit. However, if you get either of these benefits, your Universal Credit payment would be reduced.
The maximum state pension you can receive is currently £221.20 per week – rising to £230.25 in April 2025 – but if you have fewer than 35 years of National Insurance contributions or credits, you’ll get less, and usually need at least 10 years to get any state pension.
You can use the government pension calculator to check when you can start getting your state pension, and how much you are going to get. It’s also possible you may be able to top up your National Insurance contributions voluntarily to increase the amount of state pension you receive.
If you’re not receiving the full amount per week, then Pension Credit is one of the most underclaimed benefits, as many people don’t realise they qualify and can find it hard to claim. Only 65% of eligible older people receive Pension Credit – meaning almost 800,000 families are missing out on the benefit they are entitled to.
Pension Credit is a real lifeline to many and tops up income to a guaranteed level for those on the state pension. It’s for those living on an income below £218.15 a week if they’re single, or £332.95 if they’re in a couple – and will take their income to at least that amount.
Many people don’t realise that the level at which you qualify for Pension Credit you can receive rises if you get other benefits such as Carer’s Allowance or Attendance Allowance. Harries says: “Often people aren’t aware of these additions, so they often naturally exclude themselves from Pension Credit, believing their income is above the basic level.
“They also worry about the process of claiming being stressful or complicated, or it’s quite common for them to think ‘there is someone worse off than me and if I claim others may lose out’. That’s not the case.”
Pension Credit can also be backdated by up to three months if you qualified during that period, which could bring people both a lump sum and an ongoing income increase, as well as any qualifying backdated payments.
It can also open the door to other possible support including Housing Benefit, council tax reduction, Cold Weather Payments, Warm Home Discounts, free NHS dental treatment and vouchers towards the cost of eyecare.
Stephen Spirrell, a former farmer who worked for 25 years as a maintenance manager at Bath Racecourse, was receiving the state pension, along with £90 a month private pension, but was struggling to make ends meet.
However, after calling the Independent Age helpline, he found out that he qualified for Pension Credit – and a total of £7,000 a year extra support from this and other benefits – because his income was below the threshold when his eligibility for Attendance Allowance was taken into account.
Stephen, who grows his own vegetables to cut food costs, said the cost of living was ‘frightening’. “We had cut back on food, and we couldn’t afford to cook in the same way because energy prices are so high.
“Before, our situation was going rapidly downhill. Now the extra money has helped us to stay on an even keel. “I don’t have to worry about everything that could go wrong or might need fixing, because we have some money to cover things like that now.’
There are disability and sickness benefits you can claim if you need them. If you're under state pension age, you could claim Employment and Support Allowance (ESA) to replace lost income if you aren't getting Statutory Sick Pay or Jobseeker’s Allowance, and you have a disability or health condition that affects how much you can work.
This is worth up to £138.20 a week. You may also be able to claim Personal Independence Payment (PIP) to help with the extra costs of your illness or disability, worth up to £184.30 a week. In Scotland, PIP has been replaced by the Adult Disability Payment.
Once you reach state pension age, you might be able to claim Attendance Allowance (AA) instead, worth up to £108.55 a week to help pay for personal care. PIP, AA and DLA are not means-tested, so you can apply for them regardless of how much income or savings you have – although you can only claim one of them at a time.
If you have care needs, ask your local authority for a Care Needs Assessment. It's free and if you're on a low income, it could help you to get contributions to help with the care you need. Harries at Independent Age, says: “The benefits system can be hard to navigate, but there is support out there. People just need to be made aware of it and claim what they are entitled to.”
You could get Carer's Allowance if you look after someone for 35 hours a week or more. The person you're caring for should also be getting a sickness or disability benefit, like PIP or AA. You'll need to check with them first, as if you get Carer's Allowance this could affect the amount they get in other qualifying benefits.
If you’re working, you cannot be earning more than £151 a week – though this is expected to rise to £196 in April 2025. If you earn even a penny over that ceiling, you won’t be able to claim Carer’s Allowance. If you earn below that, the amount you’ll receive will increase in April 2025 to £83.30 a week from £81.90. It doesn't matter how much you have in savings.
The allowance may open the door for other benefits, including the carer element of Universal Credit, which is worth £198.31 a month. However, the rules change if you are over state pension age. Then, you can still apply for Carer’s Allowance, but you may not receive anything. Nevertheless, it is still worth applying as you may be eligible for ‘underlying entitlement’. This could qualify you for different means-tested benefits, so it can have a beneficial knock-on effect. Carers over the state pension age may also qualify for the £45.60 carer addition to Pension Credit.
In Scotland, Carer's Allowance has been replaced by a new benefit called a Carer Support Payment, which pays £81.90 a week. If you’re under state pension age, care for someone for 20 hours a week and don’t get the Carer’s Allowance, you should still apply for Carer’s Credit. There’s no direct monetary value, but it will boost your National Insurance credits to protect your state pension.
If you are on a low income, and have savings of less than £16,000 (although this rises to £23,250 if you permanently live in a care home), you may qualify for the NHS Low Income Scheme (LIS). This can cover prescription costs, dental costs, eye tests and glasses and help with travel to NHS appointments.
You can check if you’re eligible for the LIS on the NHS Business Services Authority website. If you’re renting and living on a low income, you may be able to get support with housing costs. For new claimants, this mostly comes in the form of an extra element added into Universal Credit.
However, you may still be eligible for housing benefit instead if you are in temporary, sheltered or supported accommodation, or have reached state pension age and aren’t receiving Universal Credit.
The amount you get depends on a variety of factors including your income and savings, who you live with, how much rent you pay and what other benefits you receive. Contact your local council or as part of a Pension Credit claim to find out if you are eligible.
Once you reach state pension age and are receiving Pension Credit, you'll be eligible for the Winter Fuel Payment. This was previously available to all over this age, but is now only an option for those on specific benefits. You should receive it automatically, but it’s always best to check.
You may also be able to get a reduction in council tax under certain circumstances including if you live alone, you're a carer or you or someone you live with has a severe mental impairment, such as dementia, or if you receive certain benefits.
Always speak to your local council about your circumstances to find out what help is available. Benefits entitlement is complex and can change. It can also vary depending on whether you live in England and Wales, Scotland or Northern Ireland.
To find out more about what support you may be entitled to, you can go to the Independent Age website or call its free helpline on 0800 319 6789, or use the Turn2Us benefits calculator. Independent Age says its helpline finds callers are entitled to an average of £4,000 more support than they were getting.
Find out the benefits you are entitled to, from Pension Credit to Carer’s Allowance.
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Find out the pros and cons, and what it could mean for your income and tax bill.
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