What is Pension Credit?
Pension Credit is a means-tested welfare benefit in the United Kingdom designed to provide financial support to pensioners who have a low income and meet certain eligibility criteria. It consists of two parts: Guarantee Credit and Savings Credit.
- Guarantee Credit:
- Guarantee Credit tops up the weekly income of pensioners to a minimum level set by the government. The minimum level depends on your age, whether you are single or in a couple, and whether you have additional caring responsibilities.
- To be eligible for Guarantee Credit, you must have reached the minimum qualifying age for Pension Credit. The qualifying age for Pension Credit is gradually increasing in line with the state pension age for women (currently set at 66 for both men and women).
- Savings Credit (phasing out):
- Savings Credit is an additional payment for pensioners who have saved for their retirement, for example, through a private pension scheme or savings accounts. However, Savings Credit is being phased out, and it is no longer available to people who reach their state pension age on or after April 6, 2016. If you reached state pension age before this date and are eligible, you may still receive Savings Credit.
Key points about Pension Credit:
- Pension Credit is a means-tested benefit, which means eligibility is determined based on your income, savings, and other financial circumstances.
- It is intended to provide financial support to ensure that pensioners have a minimum income level to cover their basic living expenses.
- The application process typically involves providing details about your income, savings, and other financial assets, as well as information about your living situation.
- If you’re eligible for Pension Credit, you may also be entitled to other means-tested benefits, such as Housing Benefit and Council Tax Reduction.
- Pension Credit is administered by the Department for Work and Pensions (DWP) in the UK.
It’s important to note that eligibility criteria and benefit rates may change over time, so it’s a good idea to check with the DWP or a relevant government website for the most up-to-date information and guidance if you are considering applying for Pension Credit or are currently receiving it.