2. Pension Credit

Pension Credit

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Pension Credit is a tax-free weekly payment which provides older people with a minimum level of income and subsidises those on a modest income who have made savings for their retirement.

Therefore, it tops up your income. It is paid in two parts and it is possible to receive both:

You can get both Guarantee Credit and Savings Credit or either individually, depending on your circumstances.

How do I qualify for Pension Credit?

• Age restrictions as above and for a couple both of you have to be over this age

• You must have income (including capital) below a certain level

• You must be habitually resident in the UK

• You must not be subject to immigration control

Find if you are entitled to Pension Credit

To work out whether you are entitled to Pension Credit and what amount you may get, we advise using the Gov.uk Pension Credit calculator. 

Changes to the age restriction

The minimum qualifying age for receiving Pension Credit will increase in line with increases in State Pension age for women. Therefore, it will increase from 60 to 68 between 2010 and 2046.

Pension Credit and mixed aged couples

The rules for claiming Pension Credit for mixed ages couples have changed from 15th May 2019. 

A mixed aged couple is where one partner has reached state pension age however the other person is still of working age. Under the current rules only one member of a couple needs to have reached state pension age in order to make a joint claim to Pension Credit.

From 15th May 2019, both members of the couple need to have reached state pension age to make a joint claim for the benefit. If one member of the couple is below state pension age they will need to make a claim for Universal Credit which can potentially leave them worse off financially. The partner who is of state pension age won't be subject to work-based conditionality such as looking for jobs however they may meet the entitlement criteria for the Limited Capability for Work and Work Related Activity (LCWWRA) under Universal Credit which can allow for an additional element of Universal Credit to be paid. The younger member may be required to look for work or attend training courses depending on their personal circumstances.

This change will not impact on mixed aged couples who are already receiving Pension Credit or couples where one member would have be entitled to Pension Credit before 14th May 2019 but may have been unaware of entitlement. This provision for couples who would have been entitled to Pension Credit before 14th May 2019 is possible as claims for Pension Credit can be backdated up to three months, meaning that claims for Pension Credit for mixed aged couples can be applied for up until 13th August 2019.

Pension Credit and other benefits

If you receive Pension Credit you are likely to qualify for Housing Benefit and rate relief as a tenant and Rates Relief if you are a Home Owner.  You may also qualify for help with your mortgage interest payments.

If receiving guarantee credit this will passport recipients to help with;

  • Rent
  • Rates
  • Health costs such as glasses and dental treatment

If you are in receipt of Guarantee Credit you will also be eligible to apply for Social Fund Payments (Funeral Payments, Budgeting Loans, Winter Fuel Payments, Cold Weather Payments).