Who is entitled to pension credit – Criteria and eligibility as 850,000 are missing out | Personal Finance | Finance
Pension credit is a benefit provided by the Government to help those retired and on lower incomes with living costs, including ground rent and housing service charges. Pension credit is separate from a state pension, and you can receive this even if you have other income, savings, or own your own home.
Those who claim pension credit are granted access to a whole host of additional benefits including housing benefit, council tax discounts – typically worth about £1,000 a year – and free TV licences for over-75s.
There are two types of pension credit available; guarantee credit and savings credit, which through applying, can provide you with access to the many additional benefits.
Guarantee credit works to top up weekly income to a guaranteed level of £182.60 if you’re single or for those with partners, the joint weekly income to £278.70.
Savings credit provides additional funds to those who have made some provision towards their retirement by saving, or contributing to a pension other than the basic state pension, with a top-up of £14.48 a week if you’re single, or £16.20 a week for those with partners.
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However, pension credit is not automatic – it does need to be claimed.
As a result, as many as 850,000 eligible households are currently missing out on these benefits according to consumer choice platform Which?
This is generally down to the fact many aren’t fully aware it needs to be claimed, or aren’t sure if they’re eligible.
Even if you’re only making savings of a couple of pounds, claiming the credit will be worth it as it could open the door to the other benefits available.
The average weekly amount of pension credit is £65, which works out to more than £3,300 a year according to Government figures. But the official figure you receive will depend on three main things.
You’ll most likely be eligible if your total weekly income is roughly under £200. However, if your income is higher, you might still be eligible for pension credit so don’t rule it out yet.
If you have a disability, you care for someone, you have savings, or you have housing costs, credits are available to assist or provide a boost.
So, even if you pass the first stage of eligibility, don’t hesitate to visit the website online here or call the pension credit helpline to see if you qualify for something.
You can reach the free pension service helpline for England, Wales or Scotland on 0800 99 1234 from 8am to 5pm, Monday to Friday.
To view the full list of additional benefits, what you can receive, and whether or not you qualify for each individual benefit, you can access the Government website here, which provides a brief and clear overview.
What to do if you’re not eligible?
If you don’t currently qualify for pension credit and you’re struggling, you may still be able to get support from other means, such as universal credit.
To check your eligibility for other benefits, Money Saving Experts provide a useful calculator here.
