DWP £140-a-week benefit with 'hidden' protection thousands could be missing out on
DWP £140-a-week benefit with 'hidden' protection thousands could be missing out on
Former pensions minister Sir Steve Webb has issued a warning to thousands of people who could be missing out on a key DWP benefit which could affect their state pension
Thousands could miss out on state pension cash by failing to apply for a new-style benefit with a "hidden" protection. To be eligible for the new state pension, you typically need at least 10 qualifying years on your National Insurance record, and to receive the full amount you usually require 35 qualifying years.
Those who take a break from work due to illness or disability can compensate for these years by obtaining National Insurance credits instead. Those claiming certain benefits automatically qualify for these credits, ensuring they don't miss out.
One such benefit is the new-style employment and support allowance (ESA). You can apply for new style ESA if you are below state pension age and have a disability or health condition that restricts your ability to work, reports Birmingham Live.
Former Liberal Democrats Pensions Minister Sir Steve Webb said: "The 'credits only' award has been part of the system for decades. But information about it is scant, and people on DWP phone lines often don't even mention it.
"Even if someone on the phone tells you that you aren't eligible for the benefit payments, you should still apply to get these hidden National Insurance credits.
"Not doing this can leave a gaping hole in your National Insurance record and leave you short in retirement."
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Mr Webb added: "If you are unable to work because of disability, it's vital to make sure you are claiming the correct benefits in order to protect your National Insurance record and to make sure you get a good state pension.
"It is only by claiming either Universal Credit or what is called 'new style' ESA that you get vital NI credits.
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"Even if you've been told on the phone that you may not qualify because you or a partner has too much income or savings, you should still apply simply to get the NI credits."
With new-style ESA, you can get weekly payments worth up to £140.55, alongside free national insurance credits. You can read all about the benefit here.
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