What is Pension Credit?
Pension credit is an income 'top-up' payment designed to help those who don't have enough to live on. It's a means-tested benefit with two parts:
1. Guarantee Credit:
- Tops up income to at least £218.15 a week for single people or £332.95 a week for couples of state pension age.
- The average top-up is £75 a week, which equals £3,900 a year.
- You may get more if you have additional responsibilities, like severe disability, being a carer, or looking after someone under 20.
2. Savings Credit:
- For those who reached state pension age before April 2016 (roughly aged 72+).
- Provides a top-up for those with savings, even if not eligible for guarantee credit.
- If your income from savings takes you above £189.80 a week (£301.22 for couples), you get 60p extra per £1 of income up to a maximum of £17.01 a week (£19.04 for couples).
Additional Benefits of Pension Credit
If you're entitled to the guarantee credit element, you may also receive:
- Free TV licence for over-75s: Worth £159.
- Council tax reduction: Potentially covering your entire bill, worth £1,000s a year.
- Help with heating and energy costs: Including the £150 warm home discount and additional cold weather payments.
- Housing benefit for renters: Worth £100s a month, potentially covering your full rent.
- Free dental and optical care: Free NHS dental care and vouchers for glasses or contact lenses.
Eligibility
- Very Likely to Get Pension Credit: If your total income is under £218 per week (£333 for a couple).
- Chance of Getting Pension Credit: If your income is £218 to £235 per week (£333 to £350 for a couple), depending on circumstances like disability benefits or caring responsibilities. It's possible to qualify with higher incomes under specific conditions.
Total Income Includes: Income from work, pension, state pension, some benefits, and savings/investments over £10,000 (counted as £1 a week per £500 above £10,000).
For more information and to check eligibility, visit www.gov.uk/pension-credit.
