Understanding Pension Credit
Pension Credit is an income-related benefit made up of two elements - Guarantee Credit and Savings Credit.
Pension Credit
Pension Credit gives you extra money to help with your living costs if you’re over State Pension age and on a low income. Pension Credit can also help with housing costs such as ground rent or service charges.
You might get extra help if you’re a carer, severely disabled, or responsible for a child or young person.
Pension Credit is separate from your State Pension.
You can get Pension Credit even if you have other income, a pension, savings or own your own home. Even a small award of Pension Credit can provide access to a wide range of other benefits as shown in this short video
Other help if you get Pension Credit
If you get Pension Credit you can also get other help, such as:
- Housing Benefit if you rent the property you live in
- Support for Mortgage Interest if you own the property you live in
- a free TV licence if you’re aged 75 or over
- help with NHS dental treatment, glasses and transport costs for hospital appointments
- help with your heating costs
Pension Credit and what you might get
You must live in Northern Ireland and have reached State Pension age to qualify for Pension Credit.
If you’re from the EU, Switzerland, Norway, Iceland or Liechtenstein, you and your family usually also need settled or pre-settled status under the EU Settlement Scheme to get Pension Credit.
The deadline to apply to the scheme was 30 June 2021 for most people, but you might still be able to apply. Check if you can still apply to the EU Settlement Scheme.
If you have a partner
You must include your partner on your application.
You’ll be eligible if either:
- you and your partner have both reached State Pension age
- one of you is getting Housing Benefit for people over State Pension age
A partner is either:
- your husband, wife or civil partner - if you live with them
- someone you live with as a couple, without being married or in a civil partnership
Your income
When you apply for Pension Credit your income is calculated. If you have a partner, your income is calculated together.
Pension Credit tops up:
- your weekly income to £182.60 if you’re single
- your joint weekly income to £278.70 if you have a partner
If your income is higher, you might still be eligible for Pension Credit if you have a disability, you care for someone, you have savings or you have housing costs.
What counts as income
Your income includes:
- State Pension
- other pensions
- earnings from employment and self-employment
- some social security benefits, for example Carer’s Allowance
What does not count as income
Not all benefits are counted as income. For example, the following are not counted:
- Adult Disability Payment
- Attendance Allowance
- Christmas Bonus
- Child Benefit
- Disability Living Allowance
- Personal Independence Payment
- social fund payments like Winter Fuel Payment
- Housing Benefit
If you’ve deferred your pension
If you’re entitled to a personal or workplace pension and you have not claimed it yet, the amount you’d expect to get still counts as income.
If you’ve deferred your State Pension, the amount of State Pension you would get is counted as income.
You cannot build up extra amounts for deferring your State Pension if you or your partner are getting Pension Credit.
Your savings and investments
If you have £10,000 or less in savings and investments this will not affect your Pension Credit.
If you have more than £10,000, every £500 over £10,000 counts as £1 income a week. For example, if you have £11,000 in savings, this counts as £2 income a week.
Contact the Northern Ireland Pension Centre if your circumstances change.
What you'll get
Pension Credit tops up:
- your weekly income to £182.60 if you’re single
- your joint weekly income to £278.70 if you have a partner
You may get extra amounts if you have other responsibilities and costs.
The top up and extra amounts are known as ‘Guarantee Credit’.
If you have a severe disability
You could get an extra £69.40 a week if you get any of the following:
- Attendance Allowance
- the middle or highest rate from the care component of Disability Living Allowance (DLA)
- the daily living component of Personal Independence Payment (PIP)
- Armed Forces Independence Payment
- the daily living component of Adult Disability Payment (ADP)
If you care for another adult
You could get an extra £38.85 a week if:
- you get Carer’s Allowance
- you’ve claimed Carer’s Allowance but are not being paid because you already get another benefit paying a higher amount
If you and your partner have both claimed or are getting Carer’s Allowance, you can both get this extra amount.
If you are responsible for a child or young person
You could get an extra £56.35 a week for each child or young person you’re responsible for. This is increased to £66.85 a week for the first child if they were born before 6 April 2017.
The child or young person must normally live with you and be under the age of 20.
If they are 16 or over and under 20, they must be in (or accepted for):
- approved training that is not provided through a contract of employment
- a course of non-advanced education (for example, they’re studying for GCSEs or A levels)
If they are in education, it must be for more than 12 hours a week on average.
If you get Tax Credits, you cannot get this extra amount of Pension Credit for caring for a child but you might be eligible for Child Tax Credits.
If the child or young person is disabled
If the child or young person is disabled, you could also get an extra amount of either:
- £30.58 a week if they get DLA, PIP or ADP
- £95.48 a week if they’re blind or they get the highest rate care component of DLA or CDP, or the enhanced daily living component of PIP or ADP
If you have housing costs
You could get an extra amount to cover your housing costs, such as:
- ground rent if your property is a leasehold
- some service charges
- charges for tents and site rents
The amount you could get depends on your housing costs.
If you get Pension Credit, you could also be eligible for:
- rates relief
- Housing Benefit if you rent the property you live in
- Support for Mortgage Interest if you own the property you live in
If you have savings or a second pension
You could get the ‘Savings Credit’ part of Pension Credit if both of the following apply:
- you reached State Pension age before 6 April 2016
- you saved some money for retirement, for example a personal or workplace pension
You’ll get up to £14.48 Savings Credit a week if you’re single. If you have a partner, you’ll get up to £16.20 a week.
You might still get some Savings Credit even if you do not get the Guarantee Credit part of Pension Credit.
Other help if you get Pension Credit
If you get Pension Credit you’ll automatically get cold weather payments.
You’ll also be eligible to:
- get help with NHS costs, such as prescriptions, dental treatment, glasses and transport costs for hospital appointments
- apply for a free TV licence if you’re aged 75 or over
Find out how much you could get
Use the Pension Credit calculator to work out how much you might get.
Contact the Northern Ireland Pension Centre if you’re not sure whether you’re eligible for extra amounts.
When to apply
You can start your application up to four months before you reach State Pension age.
You can apply any time after you reach State Pension age, but your application can only be backdated for three months. This means you can get up to 3 months of Pension Credit in your first payment if you were eligible during that time.
You will need the following information about you and your partner if you have one:
- National Insurance number
- information about any income, savings and investments you have
- information about your income, savings and investments on the date you want to backdate your application to (usually 3 months ago or the date you reached State Pension age)
You’ll also need your bank account details if you’re applying by phone or by post.
How to apply
For information about how to apply online, downloading an application form, asking for a form and applying by telephone, go to the link below:
How it's paid
'Direct payment' into an account is the Department for Communities' normal way of paying pensions and benefits. It is a safe, convenient and efficient payment method.
Income and benefits
Your income may affect how much Pension Credit you can get. Find out more about how your income may affect Pension Credit, how Pension Credit is paid and how it might affect your other benefits, on the following page:
SMS messages
When claiming Pension Credit you may receive text messages (SMS) from the Department for Communities (DfC). They will always be clearly marked as DfC and will never ask you to give, or click a link to give, personal information or financial details by message or email.
If you’re concerned or unsure about any text messages (SMS) you receive from DfC about Pension Credit you should contact the Northern Ireland Pension Centre directly. If you suspect you have received a fraudulent message as a scam, contact the Northern Ireland Pension Centre immediately.
- Further information is available at: scamwiseni
If your circumstances change
Tell the Northern Ireland Pension Centre, Enquiry Line, if your circumstances change, so you continue to get the right amount of Pension Credit.
Changes to Assessed Income Periods (AIPs)
An AIP is a period when you don’t have to report changes to your pensions, savings or investments. If you have an AIP you must still report all other changes to your personal circumstances.
Your Pension Credit award letter tells you if you have an AIP. You may have one if you’re aged 75 or over and you started getting Pension Credit before 6 April 2016.
You can read about the Changes to Assessed Income Periods from April 2016
Pension Credit if you move abroad
You can't get Pension Credit if you move abroad permanently.
If you disagree with a decision
If you're refused Pension Credit or think it's been calculated wrongly, ask the Northern Ireland Pension Centre to take the decision again. If you're still unhappy with the outcome you can appeal to an independent Appeal Tribunal.