Pension Credit - keeping you in control
Pension Credit is extra money to top up your income. You can get it even if you have some savings, or if you have a second pension, or your own home.
What is Pension Credit?
What could you do with an extra £55 a week?
There are two parts to Pension Credit: Guarantee Credit and Savings Credit:
- Guarantee Credit - this may be paid to you if you've reached the qualifying age. It tops up your weekly income to a guaranteed minimum
- Savings Credit - this is for those who have saved some money towards their retirement. You may be able to get it if you're 65 or over
So if you have reached the qualifying age, you may get Guarantee Credit. If you're 65 or over, you may get Savings Credit on its own, or with Guarantee Credit.
The average Pension Credit award for those currently claiming is around £55 per week.
From 6 April 2010, the State Pension age for women has started to rise gradually from 60 to 65. The age at which men and women can get Pension Credit will rise in line with this.
Changes to State Pension age
Under the Pensions Act 2011 State Pension age for women will increase more quickly to 65 between April 2016 and November 2018. From December 2018 the State Pension age for both men and women will start to increase to reach 66 in October 2020.
These changes affect you if you're:
- a woman born on or after 6 April 1953
- a man born on or after 6 December 1953
The current law already provides for the State Pension age to increase to:
- 67 between 2034 and 2036
- 68 between 2044 and 2046
However, the government announced on 29 November 2011 that State Pension age will now increase to 67 between 2026 and 2028. This change is not yet law and will require the approval of Parliament.
Changes to the State Pension age are likely to affect the Pension Credit qualifying age.
Can you get Pension Credit?
Call the Pension Service to check if you're eligible:
You may be able to get Pension Credit if you've reached the qualifying age and have an income of less than:
- £142.70 per week for a single person
- £217.90 per week for couples
If you're 65 or over, you may still get Pension Credit even if your income is up to:
- £189 per week for a single person
- £277 per week for couples
These amounts may be more if you are a carer, if you have a severe disability, or if you have extra housing costs, like a mortgage. You should contact the Pension Service to see if you can get Pension Credit.
Your savings rewarded
The first £10,000 of your savings is ignored.
There’s been a change to how entitlement to Pension Credit is worked out. This means that, even if you couldn’t get it before, you might now be eligible.
The first £10,000 of your savings will now be ignored when working out if you can get Pension Credit. Call the Pension Service on 0808 100 6165 to see if you’re eligible.
Phone lines are open Monday to Friday, from 9.00 am to 5.00 pm. If you have speech or hearing difficulties and use a textphone, call 0808 100 1165.
Calls to these numbers are free from BT landlines. You may have to pay if you use another phone company, or if you call from a mobile phone or from abroad.
What does this mean for people like you?
Here's how others feel about getting Pension Credit.
Margaret's story
"I have three grandchildren and they're the greatest joys of my life. Getting Pension Credit means once I've paid my bills I can still spoil them - whether that's for their birthdays or an occasional treat. Well, that's what grandparents do, isn't it?"
Margaret, 81
Bill's story
"I've never had to worry about what's round the corner. But after dipping into our savings to fix a leaky roof, I started thinking - what if something else were to go wrong? I feel like I have peace of mind again since I found out about Pension Credit. We get an extra £30 a week and I don't worry about things like the washer going on the blink."
Bill, 76
What else could you get?
If you get Pension Credit, you could also be eligible for Housing Benefit and help with your rates.
You will also be eligible for Cold Weather Payments. For Winter 2011/2012 this means a payment of £25.00 for each bout of cold weather. Find out more about Cold Weather Payments by following the link below.
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