MILLIONS of grandparents will get a pay rise next year when the state pension goes up.
It will help cash tight retirees who struggle with food and energy bills.
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The rise comes as announced Jeremy Hunt last month that benefits and Universal Credit payments will rise in line with September inflation rate of 10.1% next April.
Last April, benefits increased by 3.1% but bills and food prices have since risen.
The inflation rate for October reached 11.1% – the highest in 41 years.
Retirees on pension credit, attendance fee and state pension will get an upgrade.
But the increases are different for everyone.
Pension credit
Pension credit will rise from £182.60 a week to £201.05 in April next year.
For couples it goes from £278.70 to £306.85.
If your income is lower than this, you should be eligible for the allowance.
You must also be older than the state pension age and the benefit consists of two parts. Retirees may be eligible for one or both components:
- Warranty credit – supplements your weekly income to a guaranteed minimum level.
- Savings credit – generates extra money if you have saved money for your retirement.
You can get the “Savings” part of the Pension Credit if both of the following apply:
- you reached state pension age before 6 April 2016
- you have saved some money for your retirement, for example a personal or company pension
This portion of the pension credit increases from £14.48 per week to £15.94 or from £16.20 to £17.84 for couples.
There are also additional amounts, for example if you care for someone else or are incapacitated for work.
The full list of benefits you can get by submitting your retirement credit application includes:
- Rent allowance if you rent the house in which you live
- Support if you own the house in which you live
- Tax reductions at the municipality
- A free TV license if you are 75 or older
- Help with NHS prescriptions, dental treatment, glasses and free transport costs for hospital appointments
- Help with your heating costs, including cold weather payments.
You can start your application up to four months before you reach state pension age.
If you have already passed your state pension age, you can still apply, but you can only reverse the application by three months.
To claim you need the following:
- National insurance number
- information about your income, savings and investments
- information about your income, savings and investments on the date you want your application reversed (usually 3 months ago or the date you reached state pension age).
You should also have your bank details to hand.
You can apply through the online service if you have already applied for your state pension and there are no children in the application.
Otherwise, you must use the Pension Credit application line on 0800 99 1234 or apply by mail by printing and completing the Pension Credit application form.
You must send the form to:
The pension service 8
Place for mail processing B
Wolverhampton
WV99 1AN
Attendance fee
The attendance fee is designed to help you with extra costs if you have a disability so severe that you need someone to look after you.
It is paid in two different ways prices and how much you get depends on the level of care you need because of your disability.
The higher fare will rise from £92.40 to £101.75, while the lower fare will also rise from £61.85 to £68.10.
There are 57 categories of medical conditions you can claim for, but the most commonly used are arthritis (30%) and dementia (8%).
But figures from earlier this year show something plaintiffs can lose money they should qualify for – so it’s important that you check.
To get an attendance fee, you must:
You cannot get an attendance allowance if you already receive one Disability Benefit (DLA) or Personal Independence Payment (PIP).
To qualify for the lower amount, you must require regular assistance or constant daytime or nighttime supervision.
You will receive the higher amount if you need help or guidance day and night, or if you are terminally ill.
Usually you must have needed help with your condition for more than six months to get the benefit, but this is waived if you are terminally ill.
You don’t have to have a carer to claim, but if you do, they can get it Allowance for caregiver if you have major healthcare needs.
You cannot receive a care allowance if you live in a care home and your care is paid for by your municipality.
You are eligible if you pay all the costs of your care home yourself.
You must also be in Britain when you claim to be eligible, unless you are in the armed forces.
You must have been in Great Britain for at least two of the last three years and be ordinarily resident in the UK.
However, you may still be able to get an attendance allowance if you are a British national and you live in or move to the EU, European Economic Area (EEA) or Switzerland.
You can find a full list of eligible medical categories here.
Signing up for attendance pay can also boost other benefits you get.
For example, you can get extra pension credit, rent allowance or a reduction in municipal tax.
The money will be deposited into your bank, building society or credit union account.
You will also not be affected by the Benefit Ceiling if you or your partner receive an Allowance.
The allowance ceiling limits what households can claim per year.
If you want to know whether your specific benefit is affected by receiving a PGB, please contact the agency that arranges that allowance.
They will then assess what other assistance you may be entitled to.
One thing to note is that you may need to send them a copy of your attendance fee decision letter.
Here is the Form Application Attendance Allowance.
state pension
The full rate of the new state pension will increase from £185.15 per week to £203.85.
This is what the state pays to those who have reached state pension age after 6 April 2016.
For the basic part of the old state pension, the rate will increase from £141.85 to £156.20.
This is paid under the old pension system and is for those who retired before April 6, 2016.
In addition, there is the AOW in the old system, an extra benefit on top of the AOW to which some are entitled.
In response to rising life expectancy, the age at which you qualify for state pension has increased.
The age is now 66 for both men and women and will reach 68 in 2039.