- Pension basics

We hear plenty about those unscrupulous enough to defraud the benefit agencies out of billions but how often do we hear about the estimated £4.2bn in benefit that goes unclaimed by old people each year?

Whether it is complicated forms or just simply not being aware of benefit entitlements, the UK's elderly population is not receiving what they are due.

AOL Money has put together a hit list of benefits that every OAP should consult as a matter of course.

Pension Credit

First of there is the Pension Credit. This is an entitlement for people aged 60 or over living in Great Britain. This could mean extra money for you every week. Pension Credit guarantees everyone aged 60 and over an income of at least £119.05 a week if you are single, £181.70 a week if you have a partner.

Also, if you or your partner are 65 or over you may be rewarded for saving for your retirement, up to £19.05 if you are single, £25.26 a week if you have a partner.

It is also worth remembering that if you apply for Pension Credit and are deemed eligible, you may receive a payment backdated (for up to 12 months from the day you were first entitled to the date you first applied). Details of how to apply are available if you visit www.thepensionservice.gov.uk/pensioncredit

Council Tax and Housing Benefit

Council tax benefit may seem like an obvious consideration for OAPs but over two million pensioners each year fail to make legitimate claims, costing them on average £580 per year.

Benefit levels hinge on levels of income, savings, rental costs and the council tax charges/bands in that area. Anyone with savings of less than £16,000 should contact www.dwp.gov.uk and see whether they can make a claim.

One benefit that is easy to apply for but is too often unclaimed is single-person discount on council tax. If you live alone you automatically qualify for 25% discount on your annual council tax bill. Also anyone who has gone into care should immediately stop paying any council tax. It should be one of the first jobs of the next of kin to check that any direct debits to council tax are stopped as soon as the house is empty.

Housing benefit used to be relatively easy to claim but these days it is not so straight forward nor is it so well publicised. Low income pensioners in the UK fail to claim £760m each year in housing benefit that is due to them.

The benefit could be purely to help on rent but also pay for service charges which is usually itemised separately from the rent.

Once again anyone with savings of less than £16,000 is potentially eligible for housing benefit of one form or another. Any claims should be made to your local authority.

Heating Allowance

Each year we hear tragic stories about elderly people who during a cold snap die of hyperthermia. Winter fuel payments from the government are payable to all those of retirement age. If you are aged 60-79, the household receives £200 per year; if aged 80 years or over the payment is £300.

Winter fuel payments should be made automatically, though men aged 60-64 may need to make a claim (as they are officially below pension age).

Of course help on the winter fuel bills may not be enough if a house or flat is extremely cold or badly insulated - all the heat could be literally going out of the windows!. This is when pensioners should apply for local authority grants for improved energy efficiency and insulation. The grants can be up to a maximum of £4,000.

Healthcare Costs

Anyone over 60 qualifies for free prescriptions, eye tests and hearing aids .Dental costs are not always free however. For those who qualify for 'Pension Credit guarantees' then dental costs are fully covered, but for others in the over 60's bracket you can merely apply for help with the costs through the NHS Low Income scheme. This also applies for costs on glasses or contact lenses and travel to and from hospital treatment. Once again those with savings of £16,000 or over will in general not qualify for assistance on costs.

Attendance Allowance and Disability Living Allowance

Arguably those who need assistance most in old age are those who are disabled in some way. There are two main types of allowance - Attendance Allowance is available to those over age 65 who need to pay for care. There are two weekly rates £64.50 if you need help in the day and in the night time, and £43.15 if it is just for one of these time periods. For those under age 65 who are disabled and who need help with care or mobility costs, there is Disability Living Allowance. Whichever benefit applies to you, claim forms can be downloaded from www.direct.gov.uk

Carer's Allowance

Of course in some cases it is the carer themselves who need financial assistance, particularly if it is a family member. Carer's Allowance is only paid to those who devote 35 hours or more each week to caring for a sick or disabled person.

The weekly rate for Carer's Allowance is £46.95, but this payment may affect other payable benefits so it is important that you check at the outset where you stand. Carer's Allowance enquiries will be dealt with at the DWP on 01253 856 123