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Understanding Pension Credit
If you're aged 60 or over you may be entitled to Pension Credit - extra money each week. It's made up of two elements - the 'Guarantee Credit' element and the 'Savings Credit' element (which may be payable from age 65).
Who is eligible?
If you're aged 60 or over
If you're aged 60 or over and living in Great Britain, you may be entitled to the 'Guarantee Credit' element (which guarantees a minimum income if you're on a low income) if either of the following applies to you:
- you're single and your weekly income is below £130
- you have a partner and your joint weekly income is below £198.45
We use ‘partner’ to refer to your husband, wife or civil partner, or the person you live with as if they were your husband, wife or civil partner.
But you might get more Pension Credit if you have caring responsibilities, are severely disabled or have certain housing costs.
If you're aged 65 or over
If you or your partner are aged 65 or over you could be entitled to the 'Savings Credit' element if either of the following applies to you:
- you're single and your total weekly income from money you have coming in such as pensions, savings, earnings and investments is between £96 and £181 a week
- you have a partner and your joint weekly income from money you and your partner have coming in such as pensions, savings, earnings and investments is between £153.40 and £266 a week
For more details you can call the Pension Credit helpline on 0800 99 1234 or textphone 0800 169 0133, open 8.00 am to 8.00 pm Monday to Friday.
What counts as income?
Income that's taken into account includes:
- State Pension
- occupational and private pensions
- most social security benefits like Carer's Allowance
- an 'assumed income' of £1 a week for every £500 (or part of £500) of 'capital' you have over £6,000 or over £10,000 if you live permanently in a care home (capital includes savings and investments, and property that's not your main home)
- earnings after tax and expenses from employment or self-employment, less half of any occupational or personal pension contribution you make
- Working Tax Credit
Income that's ignored includes:
- Attendance Allowance
- Christmas Bonus
- Exceptionally Severe Disablement Allowance
- War Widow's Supplementary Pension
To get complete lists, you can call the Pension Credit helpline on 0800 99 1234, textphone 0800 169 0133.
How much do you get?
Age 60 or over - Guarantee Credit element
If you're single, you’ll get the difference between £130 and your total weekly income if it's less than this.
If you live with a partner, you’ll get the difference between £198.45 and your joint total weekly income if it's less than this.
But you may get more money if you have caring responsibilities, are severely disabled or have certain housing costs.
Age 65 or over - Savings Credit element
If you or your partner are aged 65 or over, you may be entitled to the guarantee credit, the savings credit or both.
The savings credit is a maximum:
- £20.40 a week if you're single
- £27.03 a week if you have a partner
Check how much Pension Credit you might get - use the Pension Credit calculator.
How it's paid
Pension Credit is paid into your bank, building society, Post Office® or National Savings account that accepts Direct Payment.
If you're registered blind or need someone who cares for you to collect the money, you can be sent a cheque to cash at the Post Office®.
Effect on other benefits
If you're getting Pension Credit you may also qualify for:
- Housing Benefit
- Council Tax Benefit
- Cold Weather Payment
- Funeral Payments
- Community Care Grant
- Budgeting Loans
- Crisis Loans
- Winter Fuel Payments
- Sure Start Maternity Grant
- free school meals
If you're getting Housing Benefit or Council Tax Benefit, the amount may be reduced when you get Pension Credit. But you should still be better off claiming Pension Credit.
How to apply
Over the telephone
You can call the Pension Service 0800 99 1234 or textphone 0800 169 0133 (lines are open 8.00 am to 8.00 pm Monday to Friday).
An adviser will help you apply for Pension Credit and let you know what happens next.
Housing Benefit and Council Tax Benefit
The Pension Service can also help you apply for Housing Benefit and Council Tax Benefit at the same time as your application for Pension Credit.
Download a form and print
You can download, print and complete the application form to post free of charge to your pension centre.
Download and fill out a form on screen
Or you can complete an application form online before posting it free to your pension centre.
What to do if your circumstances change
Tell your pension centre if your circumstances change, so you continue to get the right amount of Pension Credit.
How to appeal
If you're refused Pension Credit or think it's been calculated wrongly, ask the office that dealt with your claim to reconsider the decision. If you're still unhappy with the outcome you can appeal to an independent Unified Appeal Tribunal.
You can find out more about the appeals process in the Department for Work and Pensions (DWP) booklet 'If you think our decision is wrong'.
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