Paul Lewis: you may be entitled to benefits, credits or savings

Last month, this column helped you pay less tax and even get a refund from HMRC.

This month, we look at some of the easiest ways you can increase your income while reducing your day-to-day expenses.

Benefits

So, let me start by giving you £114.60 a week – around £6,000 a year – tax free for life. It’s not means-tested, so no matter what your income or savings are, you can still get it.

It’s called Attendance Allowance, and I mention it first because an estimate by the research group Policy in Practice assumed that, in the UK, more than a million pensioners could claim it but that’s not the case.

About two million people who already receive it are getting more money as a big help. Are you among the missing millions?

If not, perhaps a relative, friend or neighbor is?

As we grow older, our bodies and brains tire. They go slower, stiffer, more reluctant. Of course, it’s the last thing we want to admit, but there comes a time when we need help to stay safe and take care of ourselves.

Attendance Allowance starts when the activity equates to a long-term physical or mental condition, and you need help from someone to do everyday but important things – like getting up, washing, dressing, cooking, eating, using the toilet, going out or staying safe at night.

If you need help or care with any of these, you may be eligible. Help can come from a partner, friend, relative or professional caregiver.

And you don’t have to get help to qualify – just needing it is enough.

There are two rates, and both go up from April. If you need help around the clock, you can claim £114.60 a week. If you only need help during the day or at night, you can claim £76.70 a week.

It is money to recognize the problems of aging. And remember, it’s not tested – even King Charles could get it if he was eligible.

Pension loan

There is £1.6 billion waiting for a further 760,000 people over pension age who do not receive any extra income.

A pension increases your income beyond what the Government thinks you need. It is paid at different rates to people who are eligible for the state pension before 6 April 2016, and those who are eligible after.

In simple terms, it increases income to £238 a week (or £363.25 for couples over pension age), while older pensioners can get as little as $17.96 a week (£20.10 for couples) if they have extra income.

If you get Attendance Allowance or something similar, add £86.05 a week to your income, and for carers add £48.15. If you have saved more than £10,000, you can get less.

Another £1 billion is waiting to help pensioners who are tenants with their rent. And maybe the same goes for council tax cuts.

Talk to your local council about housing benefits for pensioners, and council tax relief. They are there for the asking.

State pension

I expect you are claiming a state pension. This month it will go up, and it is also a two-stage rise.

The old basic state pension will rise by £8.45 to £184.90 a week, while the new standard pension will increase by £11.05 to £241.30 a week.

That’s a 4.8% increase, but any premium paid add-ons, such as SERPS, secured payments and other deferrals, only go up 3.8%. So, in general, the increase in your pension will be between those two percentage points.

The increase will start the week of April 6, but you won’t see the increase until your next payday.

Tools

Energy prices are falling from 1 April. Regulator Ofgem says it’s a 7% drop for average customers, but the reduction you’ll see in electricity and gas costs depends on how much you use and where you live.

However, if you are one of the eight million consumers who pay their bills when they come due each quarter, there is one surefire way to save money: switch your payment to a debit or prepayment.

Your level fee will be reduced, and your rate per unit will be reduced. Guaranteed. The average user will save around £11 a month by switching to direct debit, and £14.50 a month by moving to a prepaid meter (although that comes with a lot of hassle). Either way, it’s cheaper than paying quarterly. Prices and rules are different in Northern Ireland.

If you are struggling to pay your electricity or gas bill, your supplier should work with you to agree on a payment plan that you can afford.

You can ask for a reduction in payments, a payment break, more time to pay or money from the crisis fund. Just call them. And the same goes for services like water and even telephones.

More than two million families receive help with water bills. And mobile providers offer ‘social tariffs’ to low-income people.

In fact, all of these projects depend on you asking for help. There are billions of pounds waiting to be claimed.

After a lifetime of work and giving back to society, seniors should not feel guilty or ashamed about giving back.

Please add a year to your April move!

[Hero image credit: Eliot Wyatt]