CASH BOOST: Eligible pensioners can receive a top-up to bring their weekly income to more than £105 a week (Image: Getty)
Older pensioners could be missing out on hundreds of pounds a month in extra income from the Department for Work and Pensions (DWP) through a little-known benefit known as the over-80 pension. The payment can boost State Pension income by up to £422.80 per month for people aged 80 and over who receive only a small basic State Pension – or none at all.
The over-80 pension, officially called the Category D non-contributory pension, is designed for people who reached State Pension age before April 6, 2016 and who do not qualify for the full basic State Pension. Men born before April 6, 1951, and women born before April 6, 1953, may qualify for the basic state pension, which is currently worth up to £176.45 per week for those receiving the full amount – equivalent to £9,145.40 per year.
Currently, the maximum payment is £105.70 per week, which is paid every four weeks alongside a person’s existing State Pension. This works out at around £422.80 per month or £5,496.40 per year.
From April, the weekly rate is set to rise to £110.75, giving eligible pensioners an extra £5.05 per week. This will increase monthly payments to about £443, or roughly £5,759 per year.
MORE DWPWho can claim?
This pension is available to people aged 80 or over who:
Receive less than £105.70 a week in basic State Pension, orDo not receive any basic State Pension at all andReached State Pension age before April 6, 2016
It is not available to anyone who reached State Pension age on or after that date. The payment is not issued separately; instead, it increases existing basic state pension payments, which are usually paid every four weeks.
Eligibility is not based on National Insurance contributions, unlike the standard State Pension. Instead, claimants must meet residency rules, reports Claire Schofield from the Express.
You must have lived in the UK for at least 10 years out of a 20-year period, including either the day before your 80th birthday or any day after, or have been ordinarily resident in the UK, Isle of Man or Gibraltar on your 80th birthday or when making your claim. The earliest you can apply is three months before your 80th birthday.
How much could you get?
The amount paid depends on how much basic State Pension someone already receives. The DWP says the scheme tops up income to £105.70 per week.
For example, an 80-year-old receiving £43 a week in basic State Pension would get an extra £62.70 a week, taking their total to £105.70. This would add up to around £422.80 a month.
The DWP said: “The over-80 pension is a State Pension for people aged 80 or over. To be eligible, you must get either a basic State Pension of less than £105.70 a week or no basic State Pension at all.
“What you get depends on how much basic State Pension you receive. If you do not get the basic State Pension or get less than £105.70 a week, you could get the difference paid up to this amount.”
Claimants should be aware that the over-80 pension counts as taxable income and may affect entitlement to other benefits.
How to apply
Applications can be made by requesting a claim form from a local Jobcentre Plus or by contacting the Pension Service on 0800 731 7898. The earliest a claim can be made is three months before a person’s 80th birthday, or at any time after.
The DWP is urging older pensioners and their families to check eligibility, as thousands may be missing out on extra income that could significantly boost household finances during retirement.
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