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Credit where it’s due

Alex Day

Pension Credit is a weekly benefit to boost the income of people who have met State Pension age, and is based on how much money you have coming in.

Lots of people are eligible for Pension Credit but don’t realise they are missing out on financial support because there’s lots of confusion about who can qualify.

Some people think they don’t qualify for Pension Credit because they have money in savings, or they receive a private pension, but this isn’t true. Our advice to everyone is to get a benefit check, and you can find some more information below.

Graphic showing the silhouettes of an older man and woman. Text reads: Credit where it's due Could you or someone you know be eligible for Pension Credit? with the logo of Citizens Advice Hull & East Riding

What is Pension Credit?

There are two parts to Pension Credit. The main part, which this blog covers, is guarantee Pension Credit. There is also Savings Credit, which is a small top-up for those who reached State Pension age before 6 April 2016.

When you apply for Pension Credit your income is calculated. If you have a partner, your income is calculated together. Pension Credit then looks at how much a household should receive and acts as a top-up if your income is below this.

Pension Credit tops up your weekly income to:

  • £218.15 a week if you’re single
  • £332.95 a week if you have a partner

Pension Credit classes your income as:

  • State Pension
  • Other pensions
  • Earnings from employment
  • Most social security benefits, for example Carers Allowance

They don’t count some benefits as being income. This includes things like:

  • Disability benefits
  • Child Benefit
  • Social fund payments like Winter Fuel Payment
  • Housing Benefit
  • Council Tax Reduction

You could be eligible even if you have savings

If you have money in savings, this doesn’t mean you can’t receive Pension Credit. If you have more than £10,000, every £500 over the £10,000 will count as £1 of income. If you have £11,000 in savings, this counts as £2 a week income.

Depending on your circumstances, you might be eligible for an extra element on your Pension Credit. If you qualify for an element, it can increase how much Pension Credit you qualify for, or even make you eligible depending on your income.

If you are responsible for a child, you may be eligible for some extra money in your Pension Credit.

If someone in the household has a disability and receives a disability benefit, you may qualify for a carer element if you provide care to them.

If you or your partner have health conditions, you may qualify for disability benefits, and potentially a disability premium on your Pension Credit, but this depends on your household circumstances.

How to apply for Pension Credit

Advice agencies such as Citizens Advice and Age UK are here to help. Please come along and speak to an advisor, and we can help with claiming the benefits to give access to the premiums.

If you’ve previously applied for Pension Credit and been unsuccessful, but something has changed, you may now qualify so its worth getting a check! This includes s reduction in your savings, new caring responsibilities or new children.

If you aren’t sure whether you qualify for Pension Credit, there is an online calculator online, which you can find here. You will need details of your earnings, benefits, pensions, savings and investments. If you have a partner, you’ll need the same details for them too.

Pension Credit can act as a gateway to open up more support. If you receive even 1p (yes a penny!) it can give you entitlement to support like the Warm Home Discount, the Winter Fuel Payment, a free TV licence if you’re over 75, Cold Weather Payments, full Housing Benefit and full Council Tax.

Applying for Pension Credit is straightforward, and you can apply in several ways: