Pension Credit, is a means-tested benefit for people aged 60 and over.
Pension Credit has two elements:
- 'Guarantee Credit' - if your income is below a certain level, known as the 'appropriate minimum guarantee' the guarantee credit makes up the difference.
- 'Savings Credit' - for people aged 65 and over, which is intended to provide extra money for people who have made modest provision for their retirement.
Guarantee credit is calculated by comparing your 'appropriate minimum guarantee' with your income, the guarantee credit makes up the difference.
Your appropriate minimum guarantee always includes a standard minimum guarantee.
Savings credit can be paid if you or your partner is over 65 and have 'qualifying income' above your 'Savings Credit' threshold.
Pension Credit can meet mortgage interest payments and other housing costs. You may get Housing Benefit (HB) and Local Council Tax Support to help with rent and council tax. If you get the guarantee credit, you will be passported to full HB/Council Tax Support and you may also be entitled to help with health costs such as free dental treatment and help with hospital fares. If you receive either elements you may receive help from the social fund and energy efficiency grants.
WHO CAN CLAIM PENSION CREDIT?
To claim Pension Credit you must have reached the qualifying age at which women retire. If you have a partner, they can be younger.
Only one member of a couple can claim.
You must be present in Great Britain, habitually resident and not subject to immigration control.
Pension Credit can be paid for the first 4 or 8 weeks of a temporary absence from Britain.
CALCULATING YOUR PENSION CREDIT
Guarantee credit is calculated by comparing your 'appropriate minimum guarantee' with your income. Your appropriate minimum guarantee always includes a 'standard minimum guarantee' which is:
- Single claimant - £159.35
- Couple - £243.25
Savings credit may be paid if you or your partner are 65 or over and have 'qualifying income' above your 'savings credit threshold'.
Savings Credit Thresholds Per Week:
- Single person - £137.35
- Couple - £218.42
Some people will receive savings credit in addition to guarantee credit; others will receive only savings credit.The maximum amount of savings credit payable is £13.20 a week for a single person and £14.90 for a couple.
An online calculator can be accessed at www.gov.uk which will give you can idea on how much you may be entitled to.
If you have capital of more than £10,000 this will affect your Pension Credit. You will be counted as having an extra £1 a week income for every £500 (or part of £500) over this limit.
HOW TO CLAIM
To can make a claim you can ring The Pension Credit application line on Freephone 0800 99 1234 or Text 0800 169 0133 (you will be asked questions over the phone and then the application form will be sent to you to check and sign). Alternatively, an advice agency or local Pension Service staff can help you fill in the form on a face-to-face basis - either at an advice session or through a home visit.
Whilst all the information given in this document was correct at the time of going to press, DIAL Doncaster cannot be held responsible for any subsequent changes.