Pension credit is the key to keeping free TV licence for over 75s – Martin Lewis

Pensioners urged to check eligibility for the ‘gateway benefit’ that more than a million are missing out on

Currently any household with someone aged 75 or older gets a free colour TV licence (normally costs £157.70/yr). Last year the BBC announced that from 1 June 2020 it’d scrap that, except for households where the over 75 receives pension credit. That date has been pushed back, due to coronavirus, to 1 August 2020.

While many have written about the spat between the Government (who told the BBC it was responsible for the cost of the licences) and the BBC (who says because of that it has to do this or it can’t afford to operate), as always I’m focusing on the practicals not the political.

If you’re 75+ now and receiving a free licence, TV licencing will contact you in early August to let you know of your options and ask whether you need to start paying or not. So, the sooner you check your pension credit situation the better.

Who needs a TV licence (regardless of age)?

The criteria have changed in recent years, currently there are two main reasons you need a TV licence:

1) To watch or record programmes as they’re being shown on any TV channel or watch on an online version of a TV channel concurrently as it is being shown on the TV.

2) To download or watch any programmes on BBC iPlayer.

If you only ever watch non-live programmes, on any other platform, like Netflix, YouTube or ITV hub, then you don’t need a TV licence. There are many more small terms too (eg for students) for full help of when to pay and when not, read www.moneysavingexpert.com/tvlicence.

Pension credit is a means-tested benefit

It’s tax free and aimed at those on the state pension with a low income. Yet forty per cent of those who are entitled to it aren’t claiming it, meaning up to 1.2million people are missing out on the benefit itself, and a host of other things it entitles you to, including the TV licence.

To qualify for it, you must live in the UK and have reached state pension age (currently rising from 65 to 66 for men and women). Since 15 May 2019, most couples will only be able to start claiming if BOTH partners have reached state pension age.

The system is complicated, so by far the best thing is if you’re a lower income pensioner, just check either via the pension credit calculator www.gov.uk/pension-credit-calculator or call the Pension Service on 0800 99 1234 (in Northern Ireland, phone the Northern Ireland Pension Centre on 0808 100 6165).

To claim you’ll need your national insurance number, income details, savings and investments and your bank account details. You can backdate your claim for three months – do request that.

If you prefer to know more before doing that (there’s no need) the pension credit is made up of two elements:

Guarantee credit. If your weekly income is less than £173.75 (single pensioner), or your joint weekly income is less than £265.20 (couple), your income will be topped up to this level.

Savings credit. This is mostly only available to those who reached state pension age before 6 April 2016, who have some savings (it’s done so those who saved aren’t disadvantaged by it). You could be eligible for up to £14/week extra (single) or £16/week (couple).

Pension credit is a crucial gateway benefit

I call it a gateway benefit, as if you qualify it opens up many more discounts too. Some, like the TV licence are for anyone on pension credit, but most are only for those on the main ‘guaranteed’ element.

n Council tax reduction - worth £1,000/yr typically. Contact your council, those on pension credit could be (different councils have different schemes) eligible for up to 100% reduction of your council tax bill.

n Cold weather payments - worth £25/wk when it’s really cold. This is awarded for each seven-day period of very cold weather (0°C or below) between 1 November and 31 March. If receiving pension credit, the money will be paid automatically.

n Warm home discount - worth £140/yr. Many energy suppliers offer this automatic credit to your bill by the end of March. You’ll receive a letter between October and December to apply or call the helpline on 0800 731 0214.

n Housing benefit - could be worth £1,000s/yr. If you pay rent for your home you could be entitled to housing benefit entitlement, worth £100s/mth. When you claim pension credit, you should be asked if you want to claim housing benefit at the same time.

n Free dental care - worth £100s/yr for some. Those on the guaranteed element are entitled to free NHS dental care. This could include anything from a check-up to full dentures. Just sign a declaration form when you visit your dentist.

n Voucher for glasses/contact lenses - worth £39-£215 depending on your prescription. If you receive the guaranteed element, you’re entitled to a voucher for glasses/contact lenses. Ask for the voucher form when you have your eye test.

n Water bills – up to 50% off. This isn’t widespread and depends on your individual water company, but some may give you a discount on your water bill. For example, South West Water offers up to 50% reduction for people on the guarantee element, while Wessex Water gives a discount of around 20 per cent.

Martin Lewis is the Founder of MoneySavingExpert.com. To join the 13 million people who get his free Money Tips weekly email, go to www.moneysavingexpert.com/latesttip