Working age and disability benefits will rise by 1.7% according to the September CPI (Image: Getty)
Both the New and Basic State Pensions are due to increase by 4.1% in April under the earnings growth measure of the However, additional elements, along with working age and disability benefits, will rise by 1.7% according to the September Consumer Price Index (CPI) inflation rate.
The Department for Work and Pensions () has released new data showing that 12.9 million people are currently claiming the . Of these, 4.1 million are on the New (post-April 2016), while 8.8 million are receiving the Basic (or Old) (pre-April 2016).
[REPORT]
The will send a letter to every pensioner before the payments increase on April 7, typically arriving in March. It’s crucial that recipients read this letter to verify the correct amount they will receive, reports .
An important leaflet included with the letter could potentially boost annual income by an average of £4,200. This leaflet contains information about claiming Pension Credit, a means-tested benefit, and encourages pensioners to check their entitlement.
It’s vital for all older individuals – whether single, married or cohabiting – to ensure they’re claiming all the additional financial support they’re entitled to in 2025 to help augment their income and counteract the ongoing crisis.
The annual eligibility rules have been altered, meaning only pensioners receiving certain benefits, such as Pension Credit, will be eligible for the 2024/25 payment. Pension Credit is the most under-claimed benefit, aimed at providing extra financial support for older people on low incomes – both singles and couples.
Nearly 1.4 million older people across Great Britain, including over 125,000 residing in Scotland, are currently receiving this means-tested benefit. Some older people mistakenly believe that having savings or owning their home makes them ineligible for this means-tested benefit, which is worth an average of £3,600 on its own plus it can also provide help with housing costs, heating bills and Council Tax. An award of just £1 per week can unlock additional support.
What pension credit is and how to claim it
State pensioner who missed the deadline for the are being urged to make sure they
Royal London, a pensions and life insurance provider, said its research had shown the majority of UK pensioners – 53% – do not like to ask for support or help from their friends or family, even if they need it.
Sarah Pennells, consumer finance specialist at Royal London, said there is still an awareness gap around Pension Credit and the other benefits that claiming it entitles people to.
The benefit helps top up a weekly income of under £218 or £333 if you are in a couple. On average, it is worth around £75 a week, but it can unlock other benefits worth over £1000.
Royal London found that more than a fifth of state pensioners were unaware they were entitled to other benefits if they qualified for Pension Credit.
These include:
- A discount on the Royal Mail redirection service if you move house – 93% unaware
- Help with rent costs through Housing Benefit – 57% unaware
- Help with NHS dental treatment, glasses and transport costs if you get certain types of Pension Credit – 47% unaware
- Help with Council Tax through the Council Tax Discount – 43% unaware
- A free TV Licence if you’re aged 75 or older – 41% unaware
Royal London has partnered with Pocket Power to offer pensioners a free 30-minute phone call. This service offers a bill-switching service, helping them save on their household bills and wider costs and supporting them with Pension Credit applications. On average, a Pocket Power call saves each person £250, which could provide critical support this winter.