Pension Credit: the pensioner top-up hundreds of thousands miss

Pension Credit is a top-up for people over State Pension age living on a modest income. It is widely under-claimed: not everyone entitled to it applies, even though it both adds money every week and unlocks a long list of other help. Here is how the benefit works, based on GOV.UK, and how to claim it.

Who can get Pension Credit?

Pension Credit is for people who have reached State Pension age and are on a low income. You can check your State Pension age with the calculator on GOV.UK. You can get it even if you have savings, other income or own your home. If you live with a partner you must include them on the application and your income is assessed together: you qualify when both of you have reached State Pension age, or when one of you gets Housing Benefit and is over State Pension age.

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How much do you get?

The main part, Guarantee Credit, tops your weekly income up to £238 if you are single and £363.25 for a couple. The second part, Savings Credit, is a small reward for people who saved for retirement; its maximum is £17.96 a week for a single person and £20.10 for a couple.

Extra amounts raise the figure: £86.05 a week if you are severely disabled, and £48.15 a week if you care for another adult.

How are savings treated?

Savings and investments of £10,000 or less do not affect your claim at all. Anything above that is turned into assumed income: every full £500 over the threshold counts as £1 of weekly income. For example, £11,000 in savings adds £2 a week to the calculation.

What else does it unlock?

Pension Credit is a gateway to other help, which is often the main reason to claim it:

• Housing Benefit if you rent;
• a Council Tax Reduction;
• a free TV licence if you are 75 or over;
• Cold Weather Payments and the Warm Home Discount towards winter electricity bills;
• help with NHS dental treatment, glasses and hospital travel costs if you get the Guarantee Credit part;
• Support for Mortgage Interest for homeowners and a discount on the Royal Mail redirection service when you move.

How do you claim?

Claims are taken on the Pension Credit claim line, 0800 99 1234 (Monday to Friday, 8am to 6pm). You can start your application up to four months before you reach State Pension age. You can also apply online, but only if you have already claimed your State Pension. One key detail: a claim can be backdated by up to three months if you were already eligible during that time, so it pays not to delay.

ONLYWAY NEWS reminds readers to confirm exact amounts and rules on the GOV.UK pages linked below.