A state pensioner struggling on just £300 a month discovered she could claim a £400 boost towards housing benefit and council tax relief – completely separate from Pension Credit eligibility
State pensioners struggling on barely any money to live on who cannot claim Pension Credit may not realise they can still receive assistance of around £400 towards essential bills. Listeners to BBC Radio 4’s Moneybox programme heard from an individual who was unable to access Pension Credit – and was battling to survive on £300 spending money each month.
However, she decided to contact the charity Independent Age, who had posted a leaflet through her door – and was astonished by the outcome. Programme presenter Paul Lewis said: “Buying healthy food, keeping warm, staying in touch with family and friends, these are the basics of a reasonable life. But many pensioners are on incomes that are so low they fine affording even those basics a struggle.”
Pensioner Valerie said: ” I basically kept using my credit card because that’s the only way I could survive. I never put my heating on because this house is all electric. When it’s really, really, really cold I just used to stay down here at night and just curl up on the sofa. I’d curl up with my quilt over me and that’s how I slept to keep warm.”
Mr Lewis said: “The charity Independent Age said in a report this summer that hundreds of thousands of old people face those struggles because they don’t claim the help with things like income, rent and council tax that they’re entitled to.”
He explained that Valerie resides on the Isle of Wight and her income consists of the state pension alongside a small state pension. Her monthly rent for a small two-bedroom terraced house stands at £860, which leaves her with just £300 for living expenses.
Mr Lewis noted that her circumstances considerably improved after discovering she could be eligible for assistance with rent and council tax, which would save her hundreds of pounds each month. She contacted Independent Age, who informed her that she would qualify for housing benefit, which also provides council tax relief.
Her finances were enhanced by £400 monthly, enabling her to purchase better food and visit her family.
Morgan Vine, director of policy at Independent Age said: “We’re not talking about large amounts of money that have really transformed Valerie’s life and our independent advisers speak to people every day in this situation who are struggling to use warm water, they’re no longer eating hot food, they’re very very worried and anxious about their rent etc.
“So it’s really important that everyone gets the money they’re entitled to.”
To be eligible for Pension Credit in the UK, you must be living in the UK, have reached State Pension age, and possess a weekly income beneath the government’s established threshold. This means income of less than £238 per week for an individual, or £363 per week for a couple.
Pension Credit is valued at £4,300 annually, on average. Hundreds of thousands of people find themselves in the same predicament, missing out on much-needed benefits, viewers were informed.
Mr Lewis said: “There is Pension Credit, but Valerie said, and she was probably right, that she couldn’t get that because of her income, but even with an income just above that level, you can get help with rent and council tax and that gave her nearly £400 a month.”
Ms Vine said: “Part of the problem is that it’s an incredibly complex and confusing system, so it’s always worth trying to find out if you’re entitled to housing benefit or council tax reduction. Council tax reduction can actually take someone’s bill later in life from a full amount to zero so it really matters and can make a big difference to people’s lives.”
Viewers were also told that for those living with a disability, the threshold for Pension Credit is subject to change. Ms Vine revealed that approximately 1.2 million people are currently failing to claim pension credit.
“The government has made some positive steps but we want to see a targeted strategy that’s published and we can hold them to account on. We need to be looking at partial auto enrolement, can we make reform simpler, how do we target the groups at most risk.”
For guidance and support, contact Independent Age on 0800 319 6789. Listen to the full Moneybox show here.
