Retired Couple Saves £3,000 Annually with DWP Benefit Paying Just £6 Weekly
A retired couple has managed to save more than £3,000 in the past year after heeding advice from Martin Lewis and applying for a benefit that many pensioners overlook. Despite receiving only a modest weekly payment, their claim granted them access to a range of additional supports, including eliminating their council tax bill entirely.
Understanding Pension Credit and Its Underclaiming Issue
Pension Credit is one of the most underclaimed benefits offered by the Department for Work and Pensions. Its primary function is to supplement the income of individuals over the state pension age who have low earnings. However, misconceptions about eligibility or the perceived insignificance of payments often deter people from applying.
Recent DWP analysis from last October revealed that less than 70% of eligible pensioners in England, Scotland, and Wales are claiming their entitled Pension Credit. Martin Lewis, founder of MoneySavingExpert, has long advocated for greater awareness, urging eligible individuals to claim what they are owed.
How a Small Weekly Payment Led to Major Savings
In the latest MSE newsletter, Martin shared a success story from a couple, anonymised as Anne, 76, and her husband, 83, both retired and relying on state pension. When Anne applied for Pension Credit, they were awarded £6.10 per week. However, the real financial impact came from the ancillary benefits unlocked by their claim.
Anne explained in her letter to MSE: "Due to the application being backdated to when I applied, I did not have any Council Tax to pay this year - a saving of over £2,500/year. Add to this a free TV licence, Warm Home Discount, and a lower water bill."
This combination resulted in total annual savings exceeding £3,000, significantly alleviating their cost-of-living worries. Anne noted that while she budgets carefully, the reduced financial pressure has lessened her anxiety. Despite the benefits, she admitted feeling too embarrassed to inform friends about receiving these supports, but she encouraged Martin to continue promoting awareness so others can claim their entitlements.
Additional Entitlements for Pension Credit Claimants
Pension Credit can provide a variety of supports beyond the weekly payment. Eligible claimants may access:
- Free TV licence for those over 75
- Housing benefit
- Council tax reductions
- Free dental treatment
- Discounted prescription glasses and contact lenses
- Energy bill reductions
Encouraging Eligible Pensioners to Apply
Anne concluded her message by addressing potential barriers: "I know the forms online are a little daunting, but I am sure family or a trusted friend would help." MSE advises all individuals over state pension age with low incomes to check their eligibility for Pension Credit. The Gov.uk website offers a Pension Credit calculator to assist with this assessment before starting an application.
This case highlights how even small benefit payments can lead to substantial financial relief through associated supports, underscoring the importance of claiming entitled benefits to manage living costs effectively.
