Pension Credit
Key information
Pension Credit has two parts – guarantee credit which
tops up pensioners' income to a guaranteed level and savings
credit to reward people who have saved or set up pensions for
retirement.
Applies to: England, Wales, Scotland and
Northern Ireland
Age rules:
-
Guarantee credit - If you're a woman, you
could get this when you reach state pension age. If you're a man,
you could get this part when you reach the state pension age of a
woman with the same date of birth as you. You can work out your
exact state pension age by using the
state pension age calculator (link opens in a new
window) on the Government's Directgov website. As long as
the person applying fits the age rules it does not matter what
age their partner is.
- Savings credit - if you or your
partner are aged 65 or over you could get this.
Type of benefit: Means-tested
Taxable: No
Administered by: The Pension Service
Index
You can read through this information sheet, or go directly to
the sections you want to read by clicking on these links:
Who does it help?
Guarantee credit If you fit the age rules
and are on a low income, it tops up your weekly income to a
guaranteed level.
Savings credit If you fit the age rules and
have a certain amount of income coming in from pensions, savings,
earnings and investments.
You may be able to claim one part or both parts, depending on
your circumstances.
You can claim Pension Credit whether or not you are
working. You do not have to have paid national insurance
contributions.
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What help does the benefit provide?
Pension Credit is money that you can spend as you want. You will
usually be paid directly into your bank or building society
account. You can be paid at a post office in some cases.
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How much does it pay?
Guarantee credit
It is complicated to work out how much guarantee credit you can
get. Your weekly income (which includes your partner’s income if
you live with your partner) is compared to a minimum weekly amount
set by the Government: Single people - £142.70 per week Couples -
£217.90 per week
The actual amount will vary for each person because it can be
made up of different elements on top of this minimum amount,
depending on your circumstances. For example there is an extra
amount for carers or people with disabilities.
The amount of guarantee credit that you will get is the
difference between your appropriate weekly amount and your actual
income. If your income is too high to get guarantee credit, you may
still get some savings credit.
The Turn2us Benefits Calculator can
calculate how much Pension Credit you may be entitled to.
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Savings credit
It is complicated to work out how much savings credit you can
get. The amount depends on whether you have more or less weekly
income than a certain limit:
Single person - £111.80
Couple - 178.35
If your income is more than this amount, you may get some
savings credit, the maximum amount is:
Single person - £18.54
Couple - £23.73
The Turn2us Benefits Checker can calculate
how much savings credit you may be entitled to.
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Christmas Bonus
If you receive Pension Credit you also qualify for a Christmas
Bonus each year. This is usually £10. You do not need to make a
claim for the bonus it is paid automatically. It does not affect
any other benefits you might get.
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How do I make a claim?
Telephone Claim
Phone the Pension Service:
Telephone: 0800 99 1234
Textphone: 0800 169 0133
Paper Claim
Download
a claim form from the Directgov website (link opens in a new
window)
In Northern Ireland
Phone the Pension Service:
Telephone: 0808 100 6165
Textphone: 0808 100 1165
Download
a claim form from the NI Direct website (link opens in a new
window)
When applying for Pension Credit
When you apply for Pension Credit, the Pension Service will
first decide whether you are entitled to any guarantee credit, and
if so how much. Then they will look at whether you can get any
savings credit.
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What documents will I need?
You must give your national insurance number and evidence of who
you are, for example, a driving licence or birth certificate. You
must also give evidence of your income, for example, pension pay
slips or bank statements.
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Can it be backdated?
Pension Credit can be backdated for up to three months if you
would have been entitled to it earlier. It does not matter why your
claim is late. Request this when claiming.
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Challenging decisions
If you disagree with the decision made on your benefit claim you
can ask for a written statement of reasons. If you still believe
the decision is wrong, for example due to incorrect information
being used, you can ask for it to be looked at again, and/or
appeal.
The time limits are strict, you will usually be given one month
to dispute a decision, so it is important to seek advice and act
quickly.
Further information on Challenges and
complaints
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Change of circumstance
You must report changes in your circumstances
which might affect your entitlement to this benefit.
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This information has been produced by Citizens
Advice.
Last updated: 6 April 2012
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