Older relatives can qualify for a free TV licence if they qualify for Pension Credit

Much has been written about the BBC’s decision to halt the right to a free TV licence for the over 75’s and the general outcry that has arisen since it was introduced in August 2020. Clearly it has been seen as a divisive move and has undoubtedly had an impact on pensioners already struggling on fixed incomes.

The current licence costs £159 per annum and the fee must be paid by anyone watching live terrestrial television such as BBC, ITV and Channel 4. Those watching digital channels exclusively do not have to pay.

However, it is reckoned that 1.5 million over 75’s are still eligible to pay nothing. To see whether this applies to anyone in your family, families should check with the Department of Work & Pensions to see if older relatives are receiving Pension Credit. If they are, then the licence is free.

Pension Credit provides extra money to help with living costs for anyone over state pension age and can also help with housing costs. Separate from the state pension, anyone living in England, Scotland and Wales are eligible to apply, and the criteria for receipt of Pension Credit depends on income and savings. There are no automatic payments, eligible pensioners or their families must apply on their behalf to see if they qualify.

You will need :-

The individual’s national insurance number.
Information about income, savings and investments.
Bank account details.
Applications can be made online (https://www.gov.uk/pension-credit/how-to-claim) if the person is already claiming the state pension, by phone, or by paper application, but the earliest an application for pension credit can be made is four months before reaching state pension age.

Pension Credit can top up weekly income to £177.10 for single people, and joint weekly income to £270.30 for married or co-habiting couples.

This could be an opportunity to help older relatives approaching or already in retirement to top up their income with Pension Credit, with the added bonus of a free TV license for the over 75’s who qualify.

Looking for a Brighton Mortgage Broker Click here
Looking for your credit file Click here

No time like the present to teach children money management skills

These are unprecedented times in which to bring up children and one of the vital lessons we can pass on to them is to teach them how to understand and manage money. Without a real appreciation of how to handle finance, without children money management skills, so many adults end up in debt – often because no one ever taught them how to manage money when they were young. 

We are all bombarded with slick advertising for ‘must have’ products or experiences that are backed up by ever increasing access to easy credit or ‘buy now, pay later’ schemes, tempting us into instant gratification. It is therefore vital to give our children a grounding in personal finance to help them appreciate how money can work for them, rather than against them.

Show them by example – when you take them shopping, show them how much you spend on food and that money is a tool and enables you to purchase items. Explain that having £10 in your hand does not mean you can buy something worth £10.01.

Do they know where money comes from? – explaining the concept of working for pay should be emphasised from an early age.

A piggybank – start the savings habit early. Cash might be going out of fashion, but making the connection to value is helped immeasurably by understanding coins and notes and what they represent.

Pocket money – in exchange for chores done around the house, pocket money is a good practical demonstration of the connection between work and reward.

Saving – insist that a percentage of their pocket money goes into savings; perhaps a piggybank for the very young or helping older children to open a savings account either online or via an app or passbook, in which they can see their money grow.

If children want to buy a specific item or service, or set a savings goal, this can help them learn how to budget and to understand that saving, rather than just instant acquisition via the Bank of Mum and Dad, fosters independence and recognition that saving leads to better outcomes.

As children move into their teen years there is now a range of debit cards linked to apps

which can also help them to see what they are buying, how much they spend and how much they have left. Spending limits can be applied by parents, but spending limits are not a substitute for parental guidance from an early age.

The world is becoming an increasingly difficult place to navigate, especially for the young. So, a basic grounding in managing money can be one of the best gifts you give to youngsters.

Looking for a Brighton Mortgage Broker Click here
Looking for your credit file Click here