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This benefit is dealt with by The Pension Service: Find your local office here
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What is pension credit?
Can you apply?
How it is calculated
How to apply
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What is Pension Credit?
This is for people aged 60 or over, living in the United Kingdom.
It guarantees everyone who is aged 60 and over the following weekly income as a minimum:
• £119.05 if you are single
• £181.70 if you have a partner
Can you apply?
If you are aged 60 or over and your weekly income is less than this amount, you should apply for pension credit.
You may still be able to get Pension Credit if your weekly income is more, if, for example, you or your partner:
• are a severely disabled person
• look after a person who is severely disabled
• have certain housing costs – for example, mortgage interest
payments.
Although you must be at least 60 to apply for Pension Credit, your partner can be under 60.
If you are aged 65 or over, you may still be entitled to the Savings Credit element if your weekly income from pensions, savings and investments is:
• between £87.30 and £167 and you are single
• between £139.60 and £245 and you have a partner
How it is calculated
Only certain types of income are taken into account in working out Pension Credit. These include:
• pensions (including State Pension, a work pension or a personal
pension)
• certain benefits (for example, Carer's Allowance and Bereavement
Benefit)
• earnings from a job
Types of income that are not counted include:
• Attendance Allowance
• Disability Living Allowance
• Housing Benefit
• Council Tax Benefit
• Payments from friends, family and charities are also ignored
Savings
Savings under £6,000 (£10,000 if you live permanently in a care home) have no effect on Pension Credit.
For every £500 or part of £500 you have over this figure, the Pension Service assumes £1 a week of income.
The savings and investments that are taken into account include:
• Money in a bank, building society or post office account
• National Savings Certificates
• Premium Bonds
• Investments like ISAs, PEPs and TESSAs
• An income bond, capital bond or granny bond
• Shares or unit trusts
•Property and land (but not including the place where you normally
live).
Living with your grown up family does not mean that you cannot get Pension Credit. Their income is not taken into account.
Also, owning your own home does not mean that you cannot apply. If your application for Pension Credit is successful, it may mean that you get help with Council Tax as well.
Even if you are only awarded a small amount it may mean that you can get help with other things such as Housing Benefit and Council Tax Benefit.
There is a Pension Credit calculator on the Pension Service website (it will open in a new browser window)
How to apply
• Call the Pension Credit application line on Freephone 0800 99 1234. If you have speech or hearing difficulties, the textphone number is 0800 169 0133. You complete the application over the phone, and the form is then sent to you for signing.
• You can fill in the form on-line, then print and post it. Or print out the application form from the website, complete it and post it. This is the website (it will open in a new browser window).
You may be able to get up to 12 months' back payments, if you were entitled to apply earlier.
For impartial information on pensions generally, you can go to www.pensionguide.gov.uk.