Nearly one million pensioners in the UK are entitled to Pension Credit but haven’t claimed it, according to data from the Department for Work and Pensions (DWP).
If you’re over state pension age and have a low income, Pension Credit pays about £50 a week on average and provides access to other financial supports too.
So, if you are – or anyone you know is – in this position, it’s worth checking on whether you or they could be eligible.
Who is Pension Credit for?
It’s made up of two parts, the more common of which is called Guarantee Credit. The second part, which we’ll discuss shortly, is called Savings Credit.
Guarantee Credit is intended to top up all pensioners’ income to a guaranteed minimum, which is currently £227.10 (for single people) or £346.60 (for people living with a partner).
For example:
If you’re single and your weekly income is £200 a week, you could be entitled to a top-up of £27.10 a week. If you live with a partner and your combined weekly income is £246.60, you could be entitled to a top-up of £100 a week.
So, it isn’t a set amount; it’s calculated based on your other income.
Income includes your State Pension and any other pensions, any income you earn through work or self-employment, and most – but not all – government benefits. Housing benefit, disability living allowance, and several others are not included.
People who have a disability, those who care for another adult, or are responsible for any children, may be entitled to additional payments.
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Pension Credit entitles you to other help, too
People who get Pension Credit are also entitled to a range of other financial supports.
These include a council tax reduction, help with your heating and electricity bills, and certain free health treatments, such as dental checkups and sight tests.
Those over the age of 75 also get a free TV license.
So, even if your income means you’re only entitled to a small amount of Pension Credit, it’s worth claiming it to open the door to all the other discounts and freebies.
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Savings Credit is the second, less common part
Savings Credit is available to people who reached State Pension age before 6 April 2016, who have a low income but some retirement savings, such as a personal or workplace pension.
If you meet these criteria, you could receive a small weekly payment of up to £17.30 (if you’re single) or £19.36 (if you’re living with a partner). The exact amount depends on how much income and savings you have.
Some people will be entitled to both Guarantee Credit and Savings Credit, while some will only be entitled to one or the other.
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Many people don’t realise they’re eligible
One reason this benefit often goes unclaimed is that people believe they’re not entitled to it – but the eligibility requirements are broader than you might think. As well as your income, there are three main factors involved:
Your age. Guarantee Credit is for people over State Pension age (currently 66). Savings Credit is for people who reached State Pension age before 6 April 2016 (when it was 65 for a man and 63 for a woman).Your partner. If you live with a partner, they must usually also be over State Pension age. If they are younger, but one of you is receiving housing benefit, you may still be entitled to Pension Credit.Your savings. Any savings under £10,000 will be ignored. If you have savings above £10,000, these will be considered in calculating how much Pension Credit you’re entitled to – they won’t necessarily rule you out.
It’s worth noting that the following are not factors in eligibility:
Whether you get the State Pension. You can get Pension Credit without being entitled to the State Pension, and you don’t need a National Insurance record.Whether you own your home. Homeowners and renters can both be entitled to Pension Credit.
If you’re not sure whether you’re eligible, the easiest way to find out is to start a claim. You have nothing to lose if you discover you’re not entitled to anything.
Starting a claim is quick and easy
There are three ways to claim:
Over the phone, by calling the Pension Credit Claim Line on 0800 99 1234By post, if you call the same number to request a formOnline, by visiting gov.uk and searching ‘Pension Credit’.
If you’d like to check if you could be entitled to Pension Credit without sharing your personal details with the claims team, try the Pension Credit calculator.
Remember, hundreds of thousands of people are entitled to this benefit but aren’t currently claiming it – you (or someone you know) could be one of them.
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