November 23, 2024
People over State Pension age could boost income by £1,622 | Personal Finance | Finance #UKFinance

People over State Pension age could boost income by £1,622 | Personal Finance | Finance #UKFinance

CashNews.co

The Department for Work and Pensions (DWP) has released the latest figures, revealing that over 3.5 million individuals across Great Britain are now claiming Personal Independence Payment (PIP). Notably, nearly 568,000 of these claimants are over the State Pension age, with Scotland being home to 34,000 of them.

During this financial year, thousands of elderly residents in Scotland, England, and Wales will be receiving financial support ranging from £114.80 to £737.20 every four weeks. It’s crucial to note that in Scotland, new claims for PIP have been superseded by the Adult Disability Payment (ADP), which could mean an increase in numbers as more claimants move from DWP to Social Security Scotland’s system.

A significant update to PIP guidance in 2019 may have escaped the attention of many over 56 and approaching State Pension age. The revision states that “claimants whose review would have taken place when they were of State Pension age means that they are now generally awarded ongoing awards”.

The determination of award types and review intervals is tailored to each individual, considering their specific needs and the potential for changes in their condition. This includes factors such as upcoming treatments or therapies and the process of learning to manage one’s condition, reports the Daily Record.

The DWP provides clear guidance on PIP awards and combined incomes, reports the Daily Record.

PIP awards

Guidance from DWP states:

  • For fixed length awards, the review period usually ranges from a minimum of nine months to a maximum 10 years
  • Review periods of less than nine months are set only in exceptional circumstances
  • An award of two years or less is considered short-term

Combined incomes

The full, New State Pension is currently valued at £221.20 per week (£884.80 every 4-week pay period), while the Basic State Pension can be up to £169.50 (£678 every 4-week pay period). The amount you receive depends on your National Insurance contributions.

State Pension and PIP payments are made separately, but could provide a combined monthly income of up to £1,622.

PIP payment rates 2024/25

PIP payment rates for 2024/25 require an assessment to determine the level of financial assistance you will receive. Your rate will be regularly reviewed to ensure you’re getting the right support.

Payments are made every four weeks.

PIP consists of two components: Daily living and Mobility. Whether you receive one or both of these, and how much you get, depends on how severely your condition affects you.

The weekly payment amounts depending on your circumstances are as follows:.

Daily living: Standard rate is £72.65 and Enhanced rate is £108.55.

Mobility: Standard rate is £28.70 and Enhanced rate is £75.75.

PIP and State Pension age

Once someone reaches State Pension age, they can no longer make a new claim for PIP, Disability Living Allowance (DLA) or ADP.

However, individuals already receiving PIP, DLA, or ADP when they reach State Pension age will continue to receive the benefit until the award period ends, at which point it will be reviewed following the standard process.

Those who reach State Pension age and are no longer claiming any of the working-age disability benefits may also be able to reclaim them – provided they are claiming for the same health conditions that they initially received the award for and the last claim ended less than 12 months before reaching State Pension age.

For those over State Pension age with a health condition, long-term illness or disability, they may be eligible for Attendance Allowance – this is worth either £72.65 or £108.55 every week from DWP.

People of State Pension age claiming PIP – April 2024

The number of people of State Pension age (over 65) claiming PIP or ADP as of April 2024:

  • Scotland: 33,957
  • England and Wales: 532,708
  • Living Abroad: 993
  • Unknown: 23
  • Total: 567,680

If you have not yet reached State Pension age but are living with a health condition, disability or long-term illness, you may qualify for PIP or ADP. Here is an overview of both benefits.

Who qualifies for PIP?

To be eligible for PIP, you must have a health condition or disability where you:.

  • have had difficulties with daily living or getting around (or both) for 3 months.
  • expect these difficulties to continue for at least 9 months.

To apply, you typically need to have resided in the UK for at least two of the past three years and be present in the country when you submit your application.

If you require assistance with any of the following due to your condition, as outlined above, you should contemplate applying for PIP:

  • preparing, cooking or eating food
  • managing your medication
  • washing, bathing or using the toilet
  • dressing and undressing
  • engaging and communicating with other people
  • reading and understanding written information
  • making decisions about money
  • planning a journey or following a route
  • moving around

The DWP will evaluate how challenging you find daily living and mobility tasks. They will consider each task based on:.

  • whether you can do it safely
  • how long it takes you
  • how often your condition affects this activity
    whether you need help to do it, from a person or using extra equipment

How you are assessed

An independent healthcare professional will assess you to assist the DWP in determining the level of financial support, if any, you require for PIP.

Health-related benefits consultations are available face-to-face, via video calls, telephone, and paper-based assessments – it’s crucial to understand that the choice is up to the health professional and DWP. More information about DWP PIP assessments can be found here.

How to make a new claim for PIP

You can initiate a new claim by contacting the DWP. All the information you need to apply can be found on the GOV.UK website here.

Before you call, ensure you have:

your contact details.

  • your contact details

  • your date of birth

  • your National Insurance number – this is on letters about tax, pensions and benefits

  • your bank or building society account number and sort code

  • your doctor or health worker’s name, address and telephone number

  • dates and addresses for any time you’ve spent abroad, in a care home or hospital