12 ways older people can top-up their income or reduce outgoings in the new year
The latest figures from the Department for Work and Pensions (DWP) show there are now 12.9 million people of State Pension age across Great Britain, including over 1.1m living in Scotland. Many of those in retirement rely on the contributory benefit as their main source of income which currently provides essential financial support of up to £884.80 every four weeks for 4.1m people in receipt of the New State Pension.
Some 8.8m retirees are receiving up to £678 every pay period through the Basic State Pension. But for anyone reaching State Pension age in 2025 or those already in retirement, it is important to be aware of certain benefits you can claim from the DWP plus discounts on Council Tax, help with heating costs and more financial assistance to help boost income and reduce monthly outgoings.
READ MORE: Attendance Allowance can provide up to £434 each month to pensioners with long-term health issues
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Those already receiving State Pension payments may not be aware of more than a dozen ways they might be able to boost their current income at the start of the new year.
Pension Credit will be worth over £4,000 in 2025 and currently takes around 50 working days to process, which would see first payments for successful claimants arrive before the end of March - the DWP has deployed an extra 500 staff to help process new claims due to the surge in applications since July.
To make it easier for people to understand and claim these benefits, discounts or reductions, the MoneyHelper website has compiled a comprehensive list along with quick eligibility checks to ensure older people are accessing essential support in later life.
The easiest way to check eligibility for any benefit, discount or reduction is to use an online benefits calculator - find out more about these here.
If you have an older family member or friends who do not have access to the internet, or is not familiar with using a computer, give them a hand to ensure they are not missing out on additional financial support in the new year.
Benefits for people over State Pension age
Benefits and discounts available in retirement include:
State Pension
Pension Credit
Help with Council Tax
Help with heating costs - eligibility for some may require a relevant qualifying means-tested benefit
Health benefits
Travel and TV benefits
Benefits for war widows and widowers
State Pension
The State Pension gives you a regular taxable income for the rest of your life as soon as you reach State Pension age and make a claim for it. Some people choose to defer this while they continue to work.
It’s not means-tested, but the amount you get depends on how many qualifying years of National Insurance Contributions or credits you’ve built up. You need at least 10 years for any State Pension payment and around 35 for the maximum amount - this may be more for people who were 'contracted out', find out more here.
State Pension weekly payment rates 2024/35
Full New State Pension: £221.20 (rising to £230.25 in April)
Full Basic State Pension (Category A or B): £169.50 (rising to £176.45 in April)
Pension Credit
Pension Credit currently gives 1.4m people across the UK - including over 125,000 in Scotland - extra money to help with living costs if they are over State Pension age and on a low income. It is a ‘passport’ benefit providing on average more than £4,000 each year in financial support, acting as a ‘gateway’ to Council Tax discounts, help with housing costs and NHS discounts along with free TV Licences for the over-75s.
Try the Pension Credit Calculator on GOV.UK for yourself or a family member over the New Year bank holidays to make sure you’re receiving all the financial support you are entitled to. You can also call the Pension Credit helpline on 0800 99 1234 - phone lines are closed on January 1.
Help with Council Tax
Whether you own your home or rent, you could be eligible for support from your local authority to help you pay your Council Tax. Contact your local council to ask about support with Council Tax - find out more here.
Insulation and heating schemes
There are a number of schemes that install insulation and heating improvements to make your home more energy efficient. You’re likely to be eligible if your home is poorly insulated or doesn’t have a working central heating system, and if you receive any of a range of income-related benefits including Pension Credit.
Find out more from Home Energy Scotland here or by calling 0808 808 2282 - opening hours may change over the bank holidays.
Health benefits
Everyone in Scotland is entitled to free prescriptions. Find out more about free dental treatment and refunds for travel to hospital appointments here.
Disability and care benefits
A number of benefits are available to people who have disabilities, long-term health conditions or specific care needs.
These benefits include:
Personal Independence Payment (PIP) - if you’re under State Pension age, if you reached State Pension age while claiming PIP this will continue
Adult Disability Payment - replacing PIP for people living in Scotland
Disability Living Allowance (DLA) - you will need to have been already claiming this before you reached State Pension age
Attendance Allowance - if you’re over State Pension age and have not claimed DLA or PIP
Pension Age Disability Payment (PADP) - Replacing Attendance Allowance for pensioners in Scotland in 2025
We have dedicated sections on the Daily Record website for each of these benefits:
Travel concessions
If you are over 60 or disabled find out about travel concessions on the Transport Scotland website here.
Free passport
If you were born on or before September 2, 1929, and are a British national, you could be eligible for a free passport. Find out more and how to apply on the GOV.UK website here.
Free / Discounted TV Licence
You now have to pay for your TV licence unless you are over 75 and getting Pension Credit. People over State Pension age may be able to get the TV Licence for half price if they are registered as severely sight-impaired or blind.
Check out the MoneyHelper Advice Service TV licence guide here to find out if you’re eligible.
Benefits for war widows and widowers
If your husband, wife or civil partner died or were injured or became ill as a result of their service in Her Majesty’s (HM) Armed Forces, or during a time of war before April 6, 2005, you might be entitled to a War Widow’s or Widower’s Pension.
If they died or sustained an injury or illness due to serving in a conflict after April 6, 2005, you might be entitled to compensation through the Armed Forces Compensation Scheme.
Find out more about War widows and widowers’ pensions and compensation on the GOV.UK website here.
Medical costs for war pensioners
If you need medical treatment because you were disabled while serving in the Armed Forces, you could get help towards your medical costs for your accepted disability.
War Disablement Pension
If you were injured or disabled while serving in the Armed Forces before April 6, 2005, you can get extra help towards your pension. Find out more about War Disablement Pension on the GOV.UK website here .
Age Scotland also have a full list of benefits, discounts and support older people may be entitled to claim, find out more on their website here.
