Last year, it was estimated that up to 850,000 eligible households were not claiming Pension Credit, with £1.7 billion of available Pension Credit going unclaimed.
How Pension Credit Works
Pension Credit is a benefit you can claim to top up your income if you’re over the State Pension age and struggling to cover costs.
It is made up of two parts:
- Guarantee credit – the main body of Pension Credit, which tops up your weekly income to a minimum amount
- Savings credit – which is a small top up for those with modest savings for retirement, such as in a personal or workplace pension
You might qualify for one of these or for both parts.
To claim Pension Credit you must have already reached State Pension age (as must your partner if you’re in a couple) and live in the UK.
What You Could Get
When you apply, your income will be calculated, and if you have a partner, your joint income will be calculated. Income includes:
- Any pensions, including the State Pension. If you have deferred your State Pension or haven’t yet claimed a personal or workplace pension you’re entitled to, the amount you would get under it is counted as income
- Any income earned from employment or self-employment
- Most social security benefits, though not all benefits are counted as income. You can check the government website for more information on this
Pension Credit tops up your weekly income to the total of £201.05 if you’re single, or your joint income to £306.85 if you have a partner. You may get more if you:
- Have a severe disability
- Care for another adult
- Are responsible for children or young people under age 20 who are in education or approved training
- Have housing costs
To qualify for Savings Credit, you must have reaches State Pension age before 6th April 2016. For this, you can get up to £15.94 a week if you’re single, or up to £17.84 a week if you have a partner.
If you have over £10,000 in savings, every £500 you have over this amount will reduce your Savings Credit by £1 a week.
Click here to use the government’s Pension Credit calculator to see how much you could qualify for.
Other Perks of Pension Credit
The average Pension Credit award is worth over £3,500 a year, and it opens doors to other benefits too.
As Martin Lewis said in June last year,
“even those only due thruppence from it should still claim as Pension Credit is the key gateway benefit that opens the door to many other entitlements.”
If you claim Pension Credit you’re eligible for other benefits, such as, but not limited to:
- Council tax reduction
- A free TV license if you’re over age 25
- Warm home discount
- Cold weather payments
- Free NHS dental care
- Housing benefit