State pensioners have been urged to check if they could get extra payments (Image: Getty)
The DWP will be sending out a leaflet to all 11 million state pensioners over the coming weeks as many could be missing out on an extra £3,900 a year.
rates will be going up 4.1 percent in April in line with the , and as part of this process the department will be encouraging claimants to check if they are entitled to extra cash.
In a response to a parliamentary question, pensions minister Torsten Bell said: “Over the coming weeks, as part of the annual uprating exercise, around 11 million pensioners will receive a leaflet promoting Pension Credit along with their uprating letter.”
Hundreds of thousands of households are thought to be missing out on Pension Credit, despite a recent Government drive to get people to apply. The average claim is worth £3,900 a year in benefits.
The benefit tops up your income up to £218.15 a week for a single person and up to £332.95 a week for couples.
You can get extra amounts on the weekly income top-up depending on your circumstances, such as if you care for another person.
Claiming the support also opens up access to other Government help, such as a free TV licence for claimants over 75 and, help with NHS costs, and the .
Benefit payment rates will also increase in April, going up 1.7 per cent. This will increase the Pension Credit income top-up to £227.10 a week for single claimants and up to £346.60 for couples.
In his response, Mr Bell said these increases will mean “an increase in both cash and real terms” for Pension Credit claimants.
You can claim Pension Credit if you live in England, Scotland or Wales. A person can start their application up to four months before they reach age.
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The will go up 4.1 percent from April, increasing the full new from £221.20 a week to £230.25 a week.
The full basic will increase from £169.50 a week to £176.45 a week. You typically need 35 years of National Insurance contributions to get the full new and 30 years’ worth to get the full basic amount.
With costs rising for the public purse, many experts are cautioning that the metric used to determine the increase .
Steven Cameron, pensions director at Aegon, suggested one alternative that could be used. He said: “Rather than increases each year being the highest of earnings growth, inflation or 2.5%, some smoothing could be introduced over time.
“Pensioners would receive an inflation increase as a minimum, and if over the previous three years wage growth has on average been higher than inflation, they’d get an extra uplift.
“This avoids widely fluctuating outcomes at times when both inflation and earnings growth are unpredictable, smoothing things out but ensuring pensioners still share in sustained increases in the nation’s wealth.”