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Pension Credit
Pension credit tops up low incomes for older people
If you are a little over the earnings limit for pension credit, you MAY be able to get some financial help from your local authority through their household support fund.
Pension Credit unlocks other benefits
Many people believe that if they have any savings or own their home, they won’t be eligible. This is not necessarily true: it’s definitely worth checking your own situation, if you have reached state retirement age.
Even if the award only amounts to a few pounds, it is worth claiming, as it unlocks other benefits.
Apart from Winter Fuel Payment, which is no longer paid to everyone over pension age, other benefits you could receive are free NHS dental treatment and check-ups; free sight tests; vouchers for glasses and contact lenses; help with travel costs to and from hospital; and Cold Weather Payments.
Pension Credit is dealt with by The Pension Service – you can find your Pension Centre here (external link will open in a new browser window)
Click to go straight down to:
Changes for couples from May 2019
What is Pension Credit?
There are two elements to Pension Credit; Guarantee Credit and Savings Credit.
From April 2026, Guarantee Credit tops up weekly income for people of Pension Credit qualifying age to:
• £227.10 if you are single
• £346.60 if you have a partner
What is the qualifying age?
The age at which a person qualifies to receive retirement pension is gradually increasing; it is 66 in 2024. The same for men and women. The easiest way to find out your qualifying age is by using the government’s Pension Age Calculator (external link will open in a new browser window).
If you have a partner who is younger than the qualifying age, you can still apply, but please note the recent changes explained below.
About Savings Credit
Savings credit is being phased out. If you reached State Pension age on or after 6 April 2016, you won’t be eligible for Savings Credit.
But you may still get Savings Credit if both of the following apply:
• you’re in a couple and one of you reached State Pension age before 6 April 2016
• you were getting Savings Credit up to 6 April 2016
If you stop being eligible for Savings Credit for any reason, you won’t be able to get it again.
Can you apply for Pension Credit?
Even if your weekly income is over the limit, you may still get Pension Credit 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
Changes for couples since May 2019
The rules changed from 15 May 2019, adversely affecting couples of differing ages.
Now, you will only be eligible to get pension credit if you have both reached Pension Credit qualifying age
or one of you has reached Pension Credit qualifying age and is claiming Housing Benefit (for the two of you)
You have to apply for Universal Credit instead if you’re still not eligible.
If you already get Pension Credit and you’re in a couple
In this situation, your Pension Credit will continue to be paid as usual. However, if your entitlement stops for any reason (for example, your circumstances change) you won’t be able to get it again until you are eligible under the new rules.
If you already get Pension Credit and you’re single
From 15 May 2019, you will stop getting Pension Credit if you start living with a partner who is under the qualifying age.
You will only be able to start receiving it again when your partner reaches Pension Credit qualifying age.
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 Support Payment)
• earnings from a job
Types of income that are not counted include:
• Personal Independence Payment
• Housing Benefit
• Council Tax Benefit
• Payments from friends, family and charities are also ignored
What about savings?
Savings under £10,000 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).
Worth applying, even if the award is small
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.
Pension credit: there is a calculator on the DirectGov 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 web page where you can download the form (it will open in a new browser window).
You can use a paper application if you are unable to make a claim by phone. Contact a voluntary organisation (for example Citizens Advice or AgeUK) in your area – or get a friend or family member to call the helpline to ask for a paper application.
The helpline is:
Telephone: 0800 731 0469
Textphone: 0800 169 0133
NGT text relay (if you cannot hear or speak on the phone): 18001 then 0800 731 0469
Your claim can be backdated for a maximum of 3 months, if you were entitled to apply earlier.
Article ends – click to return to top or check out related resources below
Further reading and resources
War pension or state pension? Can you get both?
12 Replies to “Pension Credit”
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My son 28 lives at home and hes on universal credit.? I’m retired told me I cant get pension credits because he lives at home. I cant put him on the tenancy as he’s not old enough. I live in bungalow which is for over 55s I also don’t get any money from him. Not a penny so no pension credits no help with glasses nor dental treatment help. I pay some rent and council tax I don’t understand why I’m worse off I cant just throw my son out. It seems very unfair I only have too pay more out than I can get help with anything
Hello Sue
When calculating pension credit, it is assumed that your son is contributing to your housing costs, even if he isn’t. However, the situation is a little bit more complicated as he is on UC.
I recommend that you use an independent benefit calculator to check exactly what you’re entitled to: https://www.entitledto.co.uk/ (external link will open in a new browser tab or window)
Can you ask him to make a contribution to the cost of running your home? He wouldn’t be able to live anywhere else free of charge. For guidance, parents generally expect between 10% and 35% of the non-dependent child’s net income.
Good luck and best wishes.
Frances
I am getting pension credit to make my money up to staye pension if I move in with a partner who.is pension age will I still get scull state pension
Hello
If you move in with a partner, your eligibility for pension credit will be assessed on your joint income. If this is less than £346.60 per week, you can receive pension credit to bring it up to this figure.
Best wishes,
Frances
In receipt of Gtd Pension Credit. Lump sum of £13,500 from late husbands estate. Need to spend £4 -£5k on repairs and replacements. Have waited over two years for estate to be settled as he had many debts. Do I need to inform DWP that I have more than £10k savings if I need to quickly spend bringing savings down to under £10.
Hello
You do need to inform DWP about any change in your financial circumstances like this. You are correct that having more than £10,000 in savings can reduce the amount of guaranteed pension credit you receive. Of course, once you spend the money you need to on repairs and replacements, your situation will be different again – most likely under £10,000, making you eligible for the full amount once more.
Best wishes,
Frances
Hello
Just wondering whether anybody else has had this issue, and seeking advice on what to do next!
I was checked out as being eligible for Pension Credit (retired, live on my own, rely on State Pension), and applied at the beginning of August for a process advertised as taking between 5 – 6 weeks.
After 6 weeks, I rang the number provided to be told that I would get a call back within 10 days, which I didn’t; and, after 9 weeks, I rang again when I was told that it was being dealt with.
It is now coming up to 12 weeks, neither call, letter or action have occurred. Is this usual? Is there anything one can do?
Thanks
Angela Bamberg
Hello Angela
All benefit applications seem to take longer than they should, sadly, so I am not surprised to hear that you have been waiting so long for this.
You are doing the right thing – probably the only thing – by keeping in contact with them to ask about progress. Hopefully, you won’t have to wait too much longer.
You can also make a formal complaint about unreasonable delays – the details are on this page (external link will open in a new browser tab or window)
Best wishes, Frances
I’m thinking of moving back in with my parents but I earn quite a good wage. My parents house is a council house and my mam claims PIP, pension credit and her state pension. My dad is also down as a carer for my mam (I think that’s why she gets pension credit). They also both claim a state pension. If I move in will my income be taken into account and will it affect the amount of pension credit she receives?
Replied by email
Hi
I was guided to this site online as I’m currently checking my eligibility for SS support as I’ve been made redundant on the 31/8/20.
The suggestion I’m following says that I may be better off claiming pension credit rather than JSA between the ages of 60 – 64, I’m aged 62 on the 16 /2/21.
Can you advise me on how to proceed if this is the case.
The info states retirement age?
Cheers Dan
Hi Dan
I’m afraid you can’t claim pension credit yet – your retirement age is 66, so you will reach it on 16 February 2025. The earliest you can claim Pension credit is four months before that.
To see whether there are any other benefits you could be entitled to, you can use the benefits checker here https://www.entitledto.co.uk/ (external link will open in a new browser window)
Good luck and best wishes,
Frances