What Is Pension Credit?

Pension Credit is a benefit for people over State Pension age who are on a low income.

It can provide extra money to help with living costs and may also give access to additional support, including help with housing costs, heating bills and Council Tax.

Many people who are entitled to Pension Credit do not claim it, so it is important to check whether you may be eligible.

It is made up of two parts:

Guarantee Credit

Savings Credit (available only to some people who reached State Pension age before a certain date)

Most new claimants will be assessed for Guarantee Credit.

Guarantee Credit helps if your income is below a minimum level set by the government.

The amount you receive depends on:

• Your income.
• Your savings and investments.
• Whether you live alone or with a partner.
• Any disabilities or caring responsibilities.
• Your housing costs.

If eligible, Pension Credit can top up your weekly income.

Savings Credit is an extra payment for some people who have made provision for their retirement through savings or pensions.

Not everyone can claim Savings Credit. It is generally only available to people who reached State Pension age before 6 April 2016.

You may be able to claim Pension Credit if:

• You have reached State Pension age.
• You live in England, Scotland or Wales.
• You have a low income.

You may still qualify if you:

• Own your home.
• Have some savings.
• Receive a State Pension.
• Have a private or workplace pension.

Many people wrongly assume they are not eligible because they have modest savings or own their home.

When assessing your claim, the Department for Work and Pensions (DWP) may look at:

• State Pension income.
• Private or workplace pensions.
• Earnings from work.
• Certain benefits.
• Savings and investments.

The rules can be complex, so it is always worth seeking advice if you are unsure.

Possibly.

Having savings does not automatically prevent you from receiving Pension Credit.

Many people are surprised to find they still qualify, even if they have money saved or receive a small private pension.

Receiving Pension Credit can help you access additional support, including:

• Council Tax Reduction.
• Housing Benefit (if applicable).
• Warm Home Discount.
• Help with NHS costs.
• Support with heating bills.
• Free TV Licence for some households aged 75 and over.

Even a small Pension Credit award can open the door to other valuable support.

You can apply for Pension Credit by:

• Telephone.
• Online.
• Post.

Before applying, it is helpful to have details of:

• Your National Insurance number.
• Income and pensions.
• Savings and investments.
• Housing costs.
• Bank account details.

In some circumstances, Pension Credit claims can be backdated for a limited period if you were entitled during that time.

If you think you may have missed out, seek advice as soon as possible.

You should tell the DWP if there are significant changes to your circumstances, including:

• Changes in income.
• Changes to savings.
• Moving home.
• Changes in household composition.

Reporting changes promptly helps ensure you receive the correct entitlement.

"I Own My Home, So I Can't Claim"

This is not true. Homeowners can still qualify for Pension Credit.

"I Have Savings, So I'm Not Eligible"

Many people with savings are still entitled to Pension Credit.

"I Only Receive a Small Amount"

Even a small award can provide access to valuable additional support and discounts.

Our advisors can help you:

• Check whether you're entitled to Pension Credit.
• Complete a Pension Credit claim.
• Understand how your income and savings affect eligibility.
• Access additional support linked to Pension Credit.
• Maximise your household income.

Contact our team for free, confidential advice and support.