State pension
Since April 2010 the state pension age for women began a 10 year upward journey to reach 65 by April 2020. A woman's state pension age will increase by one month every two months. For example, by April 2011 a woman will need to be 60 years and six months old to claim her state retirement pension and so on. In 2018 the pension age for both men and women will rise from 65 to 66. The state pension age for both men and women is due to increase from 66 to 68 between 2024 and 2046. Each change is to be phased in over two consecutive years in each decade.
If someone had not earned a decent pension in their own right by the time they retired,
it used to be possible for their partner to claim an adult dependent's increase. However, this has changed and to get a full pension, enough National Insurance contributions need to be paid over a 30 year period and no new adult dependent's increase is now payable. Since April 2010 all new pensioners will get the pension they have personally earned.
Pension credit
Pension credit is means-tested and is to top up a pensioner's other income to ensure they do not drop below the poverty line. Pension credit has no upper capital limit and savings below £10,000 are ignored. There is no upper savings limit but the DWP assumes an income from capital of £1 per week for every £500 of that figure. Housing and council tax benefit can be claimed at the same time.
Housing benefit and council tax benefit
Housing benefit is a means-tested payment made by the local council to help people to meet the costs of their rent and council tax benefit can be claimed by anyone who has the liability to pay council tax including owner occupiers as well as private and social housing tenants.
The amount of housing benefit received will depend on a number of factors i.e. how much income and savings they have. For example whether they are disabled or a carer or they have adult children living with them. This does not apply to householders getting attendance allowance of disability living allowance.
People who live alone get a 25% discount on their council tax. They may get a reduction is someone living in the home is disabled and they have a room which has been made suitable for their needs. If a property is unoccupied and unfurnished or empty because the occupant has gone into hospital or a care home, it may qualify for exemption from council tax. From 2013 help with council tax was to be left more at the discretion of local councils instead of the DWP.
Winter fuel payments
Winter fuel payment is a one off grant of either £250 or £400 made each year between November and January. It is paid to households where someone is over 60 in the qualifying week of each year which is usually in September. Payments are usually made automatically without a claim being made.
Attendance allowance
Attendance allowance is paid to people who are ill or have a disability and they need help through the day and/or night to look after themselves or need someone to look after them and keep them safe. This allowance belongs to the disabled person not the carer. A person does not actually have to have a carer or be getting help in order the qualify but has to show that it is reasonable (not medically) required. A person can get attendance allowance if they live alone. It is not means-tested and is tax free. A person must be over 65. A person under 65 should claim disability living allowance.
If a claim for attendance allowance is successful, then a person may qualify for pension credit, housing or council tax benefit even if they have applied in the past and been refused.
Disability living allowance
Disability living allowance is awarded to those aged up to 65. If a person is awarded disability living allowance before they are 65, they can continue to receive it after they have turned 65 as long as their condition has not improved. A person can get disability living allowance even if they live alone and may include both the mobility and care or just one. If disability living allowance is awarded, a person may also qualify for pension credit, housing or council tax benefit.
Both attendance allowance and disability allowance are affected by spells in residential care or hospital unless a person is self funding. Hospital inpatients lose disability living allowance (mobility) after four weeks. From 2011 this is to be extended to those in residential care. From 2013 the Government proposes to amend disability living allowance to make it more closely based on a medical assessment. This will apply to all new and existing claimants except those aged under 18 or who have kept it beyond the age of 65.
Carer's allowance
Carer's allowance can be paid to the carer of someone who receives attendance allowance or the middle or higher rate of the care part of disability living allowance for 35 hours or more each week. By claiming carer's allowance a person may adversely affect the benefits of the person they look after so, always seek advice before making a claim for carer's allowance.