UK Pension Credit is for low-income pensioners, ensuring a minimum weekly income of £218.15 for singles and £332.95 for couples. It provides benefits including extra payments for disabilities, housing costs, and other living expenses, enhancing financial security for older adults.
UK Pension Credit
UK Pension Credit is a benefit designed to provide additional financial support to individuals over the State Pension age who have a low income. It is separate from the State Pension and aims to ensure that pensioners have a minimum level of income to cover their living costs.
Guarantee Credit supplements your weekly income to meet a minimum threshold. As of now, this amount is £218.15 per week for single people and £332.95 per week for couples. This part of Pension Credit ensures that those with the lowest incomes receive enough to meet basic living expenses.
The Savings Credit part is an additional payment for those who have saved some money towards their retirement, such as through a pension plan. However, only those who reached the State Pension age before 6 April 2016 are eligible for Savings Credit.
It also offers extra payment if you get a housing benefit, attendance allowance, care allowance, etc. Overall, Pension Credit plays a crucial role in supporting the financial well-being of older adults in the UK, ensuring they have sufficient income to meet their basic needs and live with dignity.
Who is eligible to get UK Pension Credit?
To be eligible for UK Pension Credit, individuals must meet the following criteria:
- Applicants must have reached the State Pension age. For couples, both partners must have reached this age to qualify.
- Applicants must live in England, Scotland, or Wales. There are specific guidelines in place for individuals residing in Northern Ireland.
- Eligibility is met if you have a partner reaching the State Pension age, or if one partner is getting Housing Benefits for individuals over State Pension age. A partner can be a husband, wife, civil partner, or a cohabiting partner, even if not legally married.
- The applicant’s income must fall below a specified limit, encompassing earnings, pensions, and savings. Single pensioners with a weekly income below £218.15 and couples with a combined weekly income below £332.95 may qualify for Guarantee Credit.
- While there is no upper limit on savings for Guarantee Credit, savings over £10,000 can affect the amount received. Each £500 over this limit is counted as £1 of weekly income.
- Only those who reached the State Pension age before 6 April 2016 are eligible for Savings Credit. This part of Pension Credit rewards those who have made some provision for their retirement.
- You can continue receiving Pension Credit if you are away from Great Britain for up to 4 weeks, provided you remain eligible and inform the Pension Service helpline.
- You cannot apply for Pension Credit if you are already outside Great Britain or if you are moving away permanently.
- You can receive Pension Credit for up to 26 weeks if you leave Great Britain for medical treatment, approved convalescence, or if you accompany your partner or child who is receiving such treatment.
How much UK Pension Credit provide?
The UK Pension Credit amount you receive depends on your circumstances:
Guarantee Credit:
- This benefit increases your weekly income to a specified minimum amount. As per the latest figures, single pensioners are assured a weekly income of no less than £218.15, and couples are guaranteed a combined weekly income of at least £332.95.
Savings Credit:
- The maximum amount is £17.01 per week for single people and £19.04 per week for couples.
Additional Amounts:
- You may receive extra amounts if you have other responsibilities and costs.
- An extra £81.50 per week is available for individuals with severe disabilities.
- If you care for another adult, you could get an extra £45.60 a week.
- An extra £66.29 per week can be provided for each child or young person you are responsible for. If the first child was born before 6 April 2017, the weekly amount rises to £76.79.
- The child or young person receiving DLA, PIP, or ADP may receive an additional £35.93 per week, increasing to £112.21 per week if they are blind or receive the highest rate care component.
How can I claim for UK Pension Credit?
The step-by-step guide to claiming UK Pension Credit is available below.
Choose Application Method:
- Online: If you already receive the State Pension, you can apply online through the GOV.UK website.
- Phone: Call the Pension Credit claim line at 0800 99 1234. A representative can assist you with the application over the phone.
- Post: Request a claim form by calling the claim line or downloading it from the GOV.UK website.
Complete the Application:
- Ensure the application form is filled out with correct information and when applying by phone, relay all necessary information to the representative.
Submit the Application:
- Online: Submit your application through the online portal.
- Phone: Confirm your details with the representative and they will apply for you.
- Post: Mail the completed form to the Pension Service using the post address.
Receive Payments:
- You will receive Pension Credit payments directly into your bank account if your application is approved.