State pensioners can claim a series of eight freebies worth a total of £2,847 in August, under the first full month of Labour Prime Minister Andy Burnham's premiership. Burnham, the former Greater Manchester Mayor and MP for Makerfield, has made reducing household bills a central mission. At the first meeting of his cabinet, he said: 'we need to be a cost of living government and getting that cost of living down.'
His comments come as the Bank of England's latest forecasts, published on 30 July, predict inflation will climb to 3.2% by October and remain above 3% until the third quarter of 2027. That outlook is underpinned by volatility in international energy prices during July. Additional support may be on the way too, with Chancellor John Healey set to present his inaugural Budget in October.
The eight freebies at a glance
- State pension: £965 per month
- Attendance Allowance: £459 per month
- Pension Credit: £952 per month
- National Insurance exemption: £154 in August
- Free TV licence: £180
- NHS costs: £109 average
- Broadband discount: £14 a month
- Royal Mail redirection discount: £24
Cash payments for pensioners
State pension: £965 per month
The full state pension now pays £241 per week, or £965 for a typical month. The state pension age is currently 66, and is rising to 67 for men and women. The money is not automatic – you must apply when you reach state pension age. The amount you receive depends on your National Insurance contributions and credits.
Attendance Allowance: £459 per month
This benefit supports people who have reached state pension age and need help with personal care or supervision because of a long-term physical or mental condition or disability. It is not means-tested, so your income or savings do not affect eligibility. You can even claim it while working or studying. It pays up to £114 per week, or £459 a month.
Pension Credit: £952 per month
Pension Credit tops up your income if you are over state pension age and on a low income. It is means-tested and can also help with housing costs such as ground rent or service charges. The current rates are £238 per week for single people and £346.60 per week for couples. For a single person, that amounts to approximately £952 a month, while couples receive about £1,386.
Discounts, exemptions and savings
National Insurance cut: £154 in August
Once you reach state pension age, you stop paying National Insurance contributions, even if you keep working. How much you save depends on your earnings. According to data from Tax.org.uk, someone earning £40,000 a year pays £2,194 in primary Class 1 National Insurance, while someone on £20,000 pays £594. If you earn an average of £687 a week, you would save £1,851 over a year – equivalent to £154 in August.
Free TV licence: £180
Over-75s who receive Pension Credit can get a free TV licence, paid for by the BBC. To qualify, you or your partner living at the same address must be in receipt of Pension Credit. This is a saving of £180 a year.
NHS costs: £109 on average
People aged 60 and over are entitled to free NHS prescriptions and free eye tests. Dental treatment is not automatically free for pensioners, but you may be eligible if you or your partner receive Income Support, income-related Employment and Support Allowance, income-based Jobseeker's Allowance, Pension Credit Guarantee Credit, Pension Credit Guarantee Credit with Savings Credit, or Universal Credit. Free NHS wigs and fabric supports are also available to those on qualifying benefits. MoneySavingExpert estimates that free dental treatment alone could be worth up to £1,000 a year, or £83 a month. Eye tests and eye care can save £215 a year, or £17 a month, while prescriptions save £9 each time – together, the average total saving is £109.
Broadband discount: £14 a month
Many broadband providers offer cheaper social tariffs for people receiving certain benefits, including Pension Credit. The cheapest plans for pensioners cost as little as £12.50 per month, compared with the average broadband cost of £26.90 per month. That represents a saving of about £14 a month.
Royal Mail redirection discount: £24
Pension Credit claimants moving home are eligible for a discount on Royal Mail's redirection service. The service normally costs £84, but those receiving Pension Credit can shave £24 off that price.
With inflation expected to stay above the Bank of England's target until 2027, these freebies offer a crucial buffer for pensioners on fixed incomes. Further help may be announced in the Chancellor's Budget in October, as the new government continues to prioritise reducing the cost of living.
