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Why say no to free money?
By Nina Montagu-Smith
More than £7 billion goes unclaimed each year in benefits and grants available to families and the elderly. Many people do not realise, for example, that tax credits are available to households with incomes of up £66,000. Although the process for claiming any benefit or grant can be arduous, it's worth the effort in the end.
Families
According to the Government, in 2003-2004 nearly 1.5 million families were entitled to Child Tax Credit but did not claim it. A further 1.3 million families missed out on Working Tax Credit. Citizens Advice publishes guidance on tax credits at adviceguide.org.uk.
Tax credits
Households with children can claim Child Tax Credit if they have a joint income of up to £58,000, or £66,000 if there is a child under the age of one. For example, if you have children and earn £35,000 per year, you could claim £545 a year. If you do not work and have three children, you can claim £5,430. If you have children and work for at least 16 hours a week, you can also claim the Working Tax Credit, which tops up Child Tax Credit.
Even if you don't have children, you can still claim Working Tax Credit, but you must work for at least 30 hours a week if you are over 25, or 16 hours if you are over 16 and have a disability which makes it hard for you to get work.
To make a claim for Child Tax Credit or Working Tax Credit, call 0845 300 3900.
Energy efficiency grants
Gas and electricity suppliers are required to help households make their homes more energy-efficient. This scheme - the Energy Efficiency Commitment scheme - is run by the Energy Saving Trust, which is funded by the Department for the Environment, Food and Rural Affairs (Defra). To apply, you should approach a gas or electricity supplier. Some will do the work - for example, laying down loft insulation or installing radiator panels - for free, while others will do it at a subsidised rate.
Some local authorities also offer grants. The Energy Trust runs a helpline on 0800 915 7722 or est.org.uk, where you can enter your postcode to discover which grants are available in your area (est.org.uk/myhome/gid/).
Disabled facility grants
If you have a disabled child, you can claim up to £25,000 to make adaptations to your home, and there is no means test. Children with conditions such as hyperactivity or behavioural problems also qualify. This is a national grant, but you must apply to your local authority's housing department. You will first have to undergo a disabilities assessment by Social Services.
Pensioners
Age Concern says that pensioners are missing out on more than £4 billion each year. Helen Wanless, spokesperson for Age Concern, says: "Many older homeowners assume they are not entitled to benefits, or are put off by the complicated forms." Age Concern has published a book called Your Rights, available from Age Concern Books on 0870 44 22 120, priced £5.99, with information about the benefits available and how to claim them.
Pension Credit
The Government estimates that around one-third of the UK's 11 million pensioners do not claim Pension Credit, which guarantees everyone aged 60 and over an income of at least £114.05 a week if you are single, or £174.05 a week if you have a partner. This means your basic state pension, plus any other income, will be topped up to this amount.
If you have modest savings, the government will give you up to £17.88 extra per week if you are single, or up to £23.58 per week if you have a partner. However, people with savings over £6,000 - excluding the value of their home - will see their benefit reduced by £1 per week for every £500 they have over that threshold.
If you apply for Pension Credit, you may receive a payment backdated for up to 12 months from the day you were first entitled. To qualify, you must be at least 60 or within four months of your 60th birthday, but it does not matter if your partner is under 60.
To apply, call 0800 99 1234 or go to thepensionservice.gov.uk.
Council tax benefit
According to Age Concern, around two million people are missing out on an estimated £1.1 billion each year in council tax benefit. This benefit could cut your annual bill by £540. If you are entitled to the guaranteed part of the Pension Credit, you should qualify for 100% council tax benefit. If you do not receive Pension Credit, you can still claim if you have savings of under £16,000. But the amount of benefit you can receive is reduced if you have savings of more than £6,000.
You can apply for council tax benefit at the same time as Pension Credit by calling the Pension Service on 0800 99 1234. If you do not receive Pension Credit, you will have to approach your local council.
Winter fuel payment
If you have received winter fuel payment before, you do not need to reapply. You can get either £100 or £200, depending on your circumstances, and up to £300 if you are aged 80 or over. You qualify if you are aged 60 or over and living in the UK, but not if you are in a care home or are in hospital for more than a year.
To get claim for this or past winters, call the helpline on 08459 15 15 15.
Home improvement grants and loans
Home improvement grants are available to elderly and disabled people from the vast majority of local authorities. If you live in a rural area, you should apply to your local council's housing department; if you live in a city, go to the town hall housing department. Grants are means-tested, but generally, if you are in receipt of council tax or housing benefit, you should qualify for a 100% grant.
For works costing more than £5,000, most local authorities offer a loan instead of a grant. These tend to be cheaper than commercial loans. Some local authorities will expect repayment of the grant when you sell your home, while some only do so if you move house within five years. Many do not expect repayment at all.
Shaun Robinson, development consultant for the co-ordinating body for Home Improvement Agencies (HIAs), says: "You can approach us if there is no grant available or if your council has a loans-only policy. We can give you an idea of cost and advise on possible sources of funding." To find out where your local HIA is, call 01457 891 909, or go to foundations.uk.com.
Disabled facility grant
A means-tested grant of up to £25,000 is available to elderly and disabled people. All local authorities offer this. If you receive council tax benefit or housing benefit and you pass the assessment, you will be entitled to 100% of the grant. If you do not receive these benefits but live on a low income, you may still be able to claim a partial grant.
Where to go for help and advice:
Citizens Advice: adviceguide.org.uk or find local bureaux contact numbers in the telephone directory
Age Concern:
England: 020 8765 7200
Scotland: 0845 833 0200
Wales: 029 20 431555
Northern Ireland: 02890 245 729
ageconcern.org.uk
Help the Aged:
England: 020 7278 1114
Scotland: 0131 551 6331
Wales: 02920 346 550
Northern Ireland: 02890 230 666
helptheaged.org.uk
Tax credit helpline: 0845 300 3900
or hmrc.gov.uk/menus/credits.htm
Pension Credit helpline: 0800 99 1234
or thepensionservice.gov.uk
Winter Fuel Payment helpline: 08459 15 15 15
or thepensionservice.gov.uk/winterfuel
The Energy Trust helpline: 0800 915 7722
or est.org.uk
Home Improvement Agencies: 01457 891 909
or foundations.uk.com
Useful links:
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