Financial benefits for pensioners: topping up your income

Navigating pensions and benefits can be confusing and sometimes stressful, especially if you are trying to figure it all out alone. With cost of living on everyone’s mind, you may be wondering if there are any hidden benefits, support schemes or handy top-ups and discounts you could be benefitting from as a pensioner in the UK.

Here, we are looking at the many different ways you may be eligible to boost your income with benefits on top of your usual Pension and Pension Credit arrangements. From the cold weather payments you could be using to heat your home, to the travel costs you could have covered if you attend hospital appointments, here is your handy guide to topping up your income. 

At Home Instead, our aim is to help people age positively and in place by bringing expert care to their home. For nearly 20 years, we have been providing the highest standard of care, and creating industry-leading training programmes for our Care Professionals that are accredited by nursing and medical professionals. Today, we are the world’s largest global home care network, supporting over 100,000 seniors with personalised, tailored care at home. So whatever questions you have about arranging home care services, we can help.

Attendance Allowance

This is a benefit for those over State Pension age who need help with personal care (or need to be supervised for safety) due to an illness or disability.

Who is eligible? 

You may be eligible for Attendance Allowance if: 

• You are over State Pension age (if you have not yet reached it, you should look into Personal Independence Payment instead – see above)
• You have any type of disability, or physical or mental illness, including sight or hearing impairments and conditions such as dementia
• You could benefit from help with personal care, such as washing or getting dressed, or you need care to keep you safe during the day or at night
• You have needed help for at least 6 months
• You are terminally ill (if this is the case you can claim immediately)
• Attendance Allowance is not means tested, so it won’t matter how much savings or income you have, and claiming won’t affect other benefits you receive

How much can I get? 

Similar to Personal Independence Payment (PIP), there are two rates you might receive depending on how much help you need. Both amounts are typically paid every 4 weeks, and are not taxable.

• The lower rate is for those who require help either during the day orat night, and this is £68.10 per week
• The higher rate is for those who need help during the day andat night, and this is £101.75 per week

How do I claim? 

To make a claim, you must fill out the Attendance Allowance claim form which you can obtain either by calling the Attendance Allowance helpline on 0800 731 0122, or by downloading a claim form from the GOV.UK website. Keep in mind you may need to submit supporting documents with this, such as GP letters, care plans or prescriptions. 

Benefits for those caring for someone else

Carer’s Allowance

This isa weekly payment to help support you if you care for someone at least 35 hours a week and they get certain benefits. 

Who is eligible? 

You may be eligible for Carer’s Allowance if: 

• You care for someone at least 35 hours a week, helping with tasks such as washing, cooking, taking the person you care for to doctor’s appointments, etc. 
• You are 16 years old or over
• You care for the person alone or with others
• The person you care for already receives Personal Independence Payment, Disability Living Allowance, Attendance Allowance, or certain other benefits – you can learn more about which benefits are eligible here

There are some exemptions that may make you ineligible for Carer’s Allowance, for example if you share the care and another carer is already claiming Carer’s Allowance for that person. Check the GOV.UK website for more information to see if you qualify. 

How much can I get? 

£76.75 per week, but you may not receive the full amount of both Carer’s Allowance and your State Pension simultaneously. If your State Pension is over £76.75 a week, your Pension Credit payments may increase instead.

Plus, if you are a carer and claim Pension Credits, you could receive an extra payment known as Carer Addition, of up to £42.75 a week.

How do I claim? 

You’ll need your National Insurance number to hand, as well as your bank or building society details, employment details (if applicable), and more. You can check everything you need here. You may also need details of the person you are caring for, such as their date of birth and address, National Insurance number, and Disability Living Allowance reference if they’re under 16. 

You can make a claim for Carer’s Allowance on the GOV.UK website, and can backdate your claim by up to 3 months if applicable. 

Help with heating bills

Home bills can be a worry, but there are a few ways to get help with paying them, and several schemes have been launched to support those who may need help keeping their home warm in winter. The three main ones to look into are:

1. Winter Fuel Payments 
2. Cold Weather Payments
3. Warm Home Discount

Winter Fuel Payment

This is an annual tax-free payment designed to help you cover heating costs in winter.

Who is eligible?

You may be eligible for Winter Fuel Payments if: 

• You were born before 25th September 1957
• You live in the UK (in some circumstances you might be eligible if you live abroad)

You may not be eligible for this if you:

• Have been in hospital getting free treatment for more than a year
• Need permission to enter the UK and your granted leave says you cannot claim public funds
• Were in prison for the whole of the week of 18th to 24th September 2023
• You get Pension Credit, Income Support, income-based Jobseeker’s Allowance (JSA) or income-related Employment and Support Allowance (ESA)
• You lived in a care home for the whole time from 26th June to 24th September 2023

How much can I get?

You could receive between £250 and £600 to help pay your heating bills, and this amount includes a ‘Pensioner Cost of Living Payment’ of between £150 and £300. You can get this on top of other Cost of Living Payments you get with your benefit or tax credits. You could receive:

• £500 if you were born between 25th September 1943 and 24th September 1957
• £600 if you were born before 25th September 1943

If you live in a care home, you could still be entitled to Winter Fuel Payments of: 

• £250 if you were born between 25th September 1943 and 24th September 1957
• £300 if you were born before 25th September 1943

How do I claim? 

You will usually receive the Winter Fuel Payment automatically if you are eligible, and this will be detailed in a letter that you will receive in October or November stating how much you’ll get.

You do not need to submit a claim if you get certain other benefits such as State Pension, Pension Credit, Attendance Allowance, Personal Independence Payment and more, or if you have received Winter Fuel Payments in the past. 

If none of this applies, you can fill in a Winter Fuel Payment claim form for UK residents and send it to the Winter Fuel Payment Centre from 18th September 2023: 

Winter Fuel Payment Centre

Mail Handling Site A

Wolverhampton

WV98 1LR

Or claim by phone from 4th October 2023 by calling the Winter Fuel Payment Centre on 0800 731 0160 (Textphone: contact Relay UK on 18001 then 0800 731 0160, or British Sign Language video relay service), and remember to have your National Insurance number, bank or building society details, and the date you were married or entered into a civil partnership (if appropriate) handy for the call. The deadline to make a claim for winter 2023 to 2024 is 31st March 2024.

Cold Weather Payments

These are payments to help you heat your home during particularly cold weather, and these are offered for each 7-day period in which the average temperature in your area is recorded as (or forecast to be) 0°C or below. 

Who is eligible?

You may get Cold Weather Payments if:

• You receive Pension Credit, Income Support, income-based Jobseeker’s Allowance (JSA), income-related Employment and Support Allowance (ESA), Universal Credit or Support for Mortgage Interest
• The average temperature in your area is recorded as (or forecast to be) 0°C or below over a 7-day period

How much can I get?

£25 for each 7-day period of very cold weather between 1st November 2023 and 31st March 2024.

How do I claim?

There’s no need to apply for Cold Weather Payments. If you are eligible, you will be paid automatically.

Warm Home Discount 

This is a one-off discount on electricity bills. You don’t receive this as money, it will be taken off your bill directly. 

Who is eligible? 

You may be eligible for Warm Home Discount if:

• You live in England or Wales (in Scotland you are still eligible, but must meet your energy supplier’s criteria for the scheme)
• You get the Guarantee Credit element of Pension Credit
• You are on a low income and have high energy costs

How much can I get?

You could have £150 deducted from your electricity bill for winter 2023 to 2024. Remember, this money won’t be paid to you, it will be a one-off discount applied to your electricity bill between early October 2023 and 31st March 2024. This discount won’t affect your Cold Weather Payment or Winter Fuel Payment.

How do I claim?

Warm Home Discount is usually applied automatically for those who are eligible, but if you think you’re eligible and haven’t received a letter, contact the Warm Home Discount helpline on 0800 030 9322 before 29th February 2024.

Need more help with bills?

The government is investing £12 billion into Help to Heat initiatives to ensure homes are warmer and cheaper to heat, so look into schemes such as the Boiler Upgrade Scheme, Home Upgrade Grant, and Energy Company Obligation to see if you could save more on energy bills in the long term.

Housing Benefits

These are payments to help cover your rent if you are on a low income.

Who is eligible? 

You may be eligible for Housing Benefits if:

• You are on a low income or are claiming benefits
• You rent your home (you could receive help with paying rent) 
• You have savings of less than £16,000
• You are over State Pension age
• You own your home (you could receive help with mortgage interest, ground rent and service charges through the Support for Mortgage Interest (SMI) scheme, instead of receiving Housing Benefits) 

How much can I get?

Housing Benefits are means tested, so the amount you will receive depends on your income, how much you have in savings, who you live with, how much rent you pay, how many rooms are in your home, and whether you get other benefits such as Carer’s Allowance, Attendance Allowance or Personal Independence Payment. 

How do I claim?

If you are claiming Pension Credits, you can make a claim through the Pension Service by contacting them through the GOV.UK website. If you are not claiming any other benefits, you can apply for this through your local council, who will ask for evidence to go with your claim. This could be proof of identity, proof of income and savings and more, so you may want to check what you need and gather this information before you start your claim. 

Council Tax Support

This is sometimes known as Council Tax Reduction, and this benefit helps those who are on a low income or are claiming certain benefits to pay their Council Tax bill.

Who is eligible?

You may be eligible for Council Tax Support if:

• You are on a low income 
• You receive certain benefits 

Your local council will decide your eligibility, and your employment status will not factor in this decision. It also won’t matter whether you own or rent your home. 

Keep in mind that if you already claim Pension Credits you likely won’t have to pay Council Tax unless you have other people living with you.

How much can I get?

There is no fixed amount of Council Tax Support because what you receive depends on your circumstances and where you live, and your local council will decide what amount will be helpful to you. They will take into account factors such as your age, your income, including any benefits you receive, your savings, who you live with, how much Council Tax you pay and more. 

How do I claim?

You will need to reach out to your local council, as they will run their own Council Tax Support scheme. You can find your local council and start a claim on the GOV.UK website. 

Help with urgent one-off payments

This can be offered if you receive an unexpected bill or emergency cost that you can’t pay right away. There are a couple of ways this can be arranged:

1. You could get another benefit paid in advance to cover the unexpected cost. This is called a Budgeting Loan, and can be used to pay for things such as surprise bills, buying necessary furniture or clothing, and more. The minimum loan is £100, and you can borrow up to between £348 and £812 depending on your individual circumstances. 

Remember, this is a loan and you will need to repay it within 104 weeks. The amount you owe will automatically be taken off of your usual benefit payment until it is paid off, but they will let you know how much your payments will reduce by. You can apply for a Budgeting Loan online using the online portal, or apply by post by downloading a Budgeting Loan claim form.

1. You could get a Budgeting Advance, which is available to you if you are already receiving Universal Credit. This is also designed to help pay for one-off, unexpected costs such as home repairs. The minimum loan is £100, and you can borrow up to between £348 and £812 depending on your individual circumstances. 

Remember, this is a loan, and you will need to repay it within 12 months. The amount you owe will automatically be taken off of your Universal Credit payments until it is paid off. You can apply for a Budgeting Advance through your online account on GOV.UK, by calling the Universal Credit helpline on 0800 328 5644, or by speaking to your Jobcentre Plus work coach.

Travel related benefits

If you are over the age of 60 or have a disability, you may be entitled to free or discounted travel on public transport services. These include: 

1. Free bus passes: In England you can get a bus pass for free travel when you reach the State Pension age, and if you live in London you can get free travel on buses, trains and other modes of transport in and around London with a 60+ London Oyster photocard. You can apply for either pass on the GOV.UK website. 

1. Disabled persons bus passes: There is no singular provider of a disabled person’s bus pass, but your local council may offer their own version of this which you can apply for if you are eligible. Reach out to your local council. 

1. Individual transport operator discounts: Many transport operators offer their own discounts for older or disabled customers, so it is always worth reaching out to the services you use the most to see if they offer anything. For example, National Express offers a Coachcard which means eligible people can get a discount, and although you need to pay a small fee upfront, it could save you money long term.

1. Senior Railcards: Depending on your age and circumstances, you might be entitled to a Senior Railcard which offers you a third off the cost of train travel. It is a small upfront cost but could save you money in the long run if you travel by train frequently. This is usually available for anyone aged 60+, and you can find out more about the Senior Railcard and apply online. 

Health related benefits

In the UK, many seniors are eligible for help with NHS health costs such as prescriptions, dental health and eye health:

1. Free prescriptions:You may be entitled to free prescriptions if you are 60+ and receive other benefits like the Guarantee Credit part of Pension Credit, Income Support, Universal Credit and more. Even if you don’t receive benefits but are on a low income, you could still be eligible, so it’s worth looking into. You will need to show your pharmacy proof of age, and may need to show proof of benefits if applicable. 

1. Free eye tests: You are entitled to free NHS sight tests if you are 60+, registered as partially sighted or blind, have been diagnosed with diabetes or glaucoma, are 40 or over and your mother, father, sibling or child has been diagnosed with glaucoma, or have been advised by an eye doctor that you’re at risk of glaucoma. You may also be eligible for optical vouchers to help purchase glasses or contact lenses if you need them. If you have paid for a sight test but think you may qualify for an NHS-funded test, or you’re about to have a test and you’re not sure if you qualify, ask your optometrist for a receipt to show you paid for the test and the date of payment, and call the Help with Health Costs helpline on 0300 330 1343 to discuss. 

1. Dental care: You may be entitled to free NHS dental treatment if you or your spouse receive Income Support, Income-related Employment and Support Allowance, Income-based Jobseeker’s Allowance, Pension Credit Guarantee Credit, or Universal Credit (in certain circumstances). If you claim Pension Credits you may get free NHS dental treatment, so this is definitely worth looking into. You just need to show your dentist written proof that you don’t need to pay for all or part of your treatment, so speak to them about what proof they require. 

Depending on your circumstances, you could also get help with NHS wigs and fabric supports, and travel costs if you are travelling to receive NHS treatment, so always check where you could be receiving support.  

Further support

Two other benefits that are handy to know about include:

TV Licence Discounts

This can give those 75 or over a free TV licence, or a discount if they are visually impaired.

Who is eligible? 

You may be eligible for discounted TV licence fees if:

• You claim Pension Credits
• You are aged 75 or over

You can also receive a 50% discount on your TV licence if you are blind or have a severe sight impairment. 

What can I get?

A standard TV licence costs £159 per year, so you will get all or part of this payment discounted. 

How do I claim?

If you have already paid for your TV licence but believe you may be eligible for a discount or a free licence, you can contact TV Licensing for a refund.

When you turn 75 you can get in touch with TV Licensing on 0300 790 6117 to request an application form or apply online.

Bereavement Support Payment (BSP) 

This is a payment you may receive if your spouse, civil partner or cohabiting partner (if you have a child or children) has died, and this is designed to help ease any financial worries you may be facing.

Who is eligible?

You may be eligible for Bereavement Support Payments (BSP) if:

• Your spouse, civil partner or cohabiting partner (if you have a child or children) died after 6th April 2017
• You were under State Pension age when your spouse, civil partner or cohabiting partner died
• Your partner paid National Insurance contributions for at least 25 weeks in any single tax year since 1975
• You were living in the UK at the time of the death (or another country that pays bereavement benefits)

Bereavement Support Payment (BSP) is not means tested, so you can claim it no matter what your income is or whether you are working.

What can I get?

• If you are not responsible for a child under the age of 20, you may get a lump sum payment of £2,500, followed by 18 monthly payments of £100
• If you are responsible for a child under the age of 20, you may get a lump sum payment of £3,500, followed by 18 monthly payments of £350

How do I claim?

Call the Bereavement Service helpline on 0800 151 2012, download a claim form on GOV.UK to apply by post, or contact your local Jobcentre Plus to have a form sent to you by post. 

Although this will be a difficult time for you and your family, it is important that you claim Bereavement Support Payments within three months of the death of your loved one to get the full amount if you are eligible. If you are struggling with grief and finding administrative tasks like this difficult, reach out to a loved one who can provide emotional support. 

How do I know which benefits I am entitled to? 

Figuring out which benefits you are eligible to claim can be a confusing process, so try not to become overwhelmed and seek help if you can. You could use the Age UK benefits calculator to see if you are entitled to anything you don’t know about, and visit the GOV.UK website for an extensive list of all benefits you may want to look into. 

We’re an award-winning home care provider and part of a worldwide organisation devoted to providing the highest-quality relationship-led care for older people in their own homes. Arranging care for yourself or your loved one shouldn’t be stressful, so whatever questions you would like answered, feel free to reach out to the Home Instead team to discuss your needs.