What is it?

Pension Credit is an income-related benefit made up of two parts - Guarantee Credit and Savings Credit.

Guarantee Credit tops up your weekly income if it's below £218.15 (for single people) or £332.95 (for couples).

Savings Credit is an extra payment for people who saved some money towards their retirement, for example a pension. It is only available to people who reached state pension age before 6 April 2016.

Am I eligible?

To qualify for Guarantee Credit you must have reached state pension age. Only people who have reached state pension age before 6 April 2016 may be eligible to claim Savings Credit.

Even if you have savings or own your home you may still be eligible.

Changes that applied from 15 May 2019

If you're in a couple you'll only be eligible to make a new claim for Pension Credit if one of the following applies to you:

• both you and your partner have reached Pension Credit qualifying age
• one of you has reached Pension Credit qualifying age and is claiming Housing Benefit for you as a couple

If you're in a couple and not eligible for Pension Credit under the new rules, you can both apply for Universal Credit instead.

Note that the above changes are for new claims only.

If you already get Pension Credit and your partner is under the qualifying age, you will carry on receiving Pension Credit for as long as you remain eligible.

However, if your circumstances change (for example, your income increases) and you lose your entitlement to Pension Credit, you won't be able to start getting it again until you and your partner are eligible under the new rules.

Similarly, if you were single and claiming Pension Credit before 15 May 2019, but on or after that date start living with a partner who is under Pension Credit qualifying age, you will lose your entitlement until your partner also reaches Pension Credit qualifying age.

For more information about maximising your retirement income please watch the below video.

Who pays it?

The Pension Service, Department for Work and Pensions.

How do I apply?

You can make a claim over the telephone by calling 0800 99 1234.

You can start your application up to four months before you reach state pension age. 

Is it National Insurance based?

No.

Is it means-tested?

Yes.

How long does it last?

Awards can be reviewed depending on your circumstances.

Any effect on other benefits? 

If you are awarded guarantee pension credit you may qualify for full housing benefit and council tax reduction however non dependant deductions could still be made. 

Savings Credit may have an effect on Housing and Council Tax reduction.

Is it taxable?

No.

Are there any dependant's additions?

An additional amount for children can be included in your calculation if you are responsible for a child (aged up to 16 or up to 20 if they are in approved training or education), they normally live with you, and you do not have an existing award of Tax Credits. 

You can get additional premiums such as Carers Premium and Severe Disability Premium included in the Guaranteed Pension Credit calculation.

Is it payable in the European Union?

Specific advice is available from the Overseas Benefits Directorate who can be contacted by calling 0191 213 5000.

Can I challenge the decision?

You can challenge a decision about Cold Weather Payments if you are unhappy with it.

Find out how to challenge a decision.

How to contact us 

You can get in touch with us by emailing us at TPTeam@northlan.gov.uk or by calling us on 01698 332551.