Many people are failing to claim extra money each week, to which they are entitled, in the form of pension credits. It seems many people are put off by the thought of filling in forms or are too embarrassed to make a claim. In 2006/07, nearly two million people who could claim extra money each week through pension credit failed to do so. The Department for Work and Pensions set itself the task of paying pension credit to 3.2 million households by 2008. But this target was not achieved and is no longer being pursued. "Despite significant campaigns to encourage take-up of pension credit the number of customers responding to such campaigns has reduced over time." Pension Credit is an entitlement for people aged 60 or over living in Great Britain. There are 2 parts to Pension Credit. Guarantee credit is extra money each week to bring income up to the minimum amount the Government considers people need to live on. It guarantees everyone aged 60 and over an income of at least: 124.05 GBP a week if single 189.35 GBP a week for a couple, if one or both are over 60 Savings credit is extra money each week for people who have an income which is higher than the basic State Retirement Pension or have modest savings. If you are 65 or more you may get the savings credit part. You can normally get some savings credit if your weekly income is less than: 173.33 GBP if you are single; or 254.68 GBP between you, if you are married or live as a couple There are extra payments if you are severely disabled or a carer. Council tax More than two million people over 60 could get their council tax reduced if they applied. Those with less than GBP 6,000 in savings could pay no council tax at all. Even if savings are more than GBP 6,000 but less than GBP 16,000, they may still get all their council tax paid, depending on exactly how much income and savings they have. What happens to the unclaimed money? The Government is planning some improvements to the claims system. Anyone claiming pension credit from October 6, will automatically make a claim to pay less council tax and, if they pay rent, money off that too. At the moment the final stage of these claims has to be made separately and the Government says about half do not go on to claim those other benefits. Billions of pounds worth of benefits is available to help older people wipe out their council tax bills, offer a welcome top-up to the basic state pension - and even money towards dental bills. A simple phone call may be all it needs to claim entitlements. Claiming what you are entitled to could improve your quality of life, not to mention give you a bit of extra cash to treat yourself and your family.
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