Pension Credit Explained
The top-up for pensioners on a low income, the housing, council tax, heating and NHS help that comes with it, and the three ways to claim.
By the Ledger desk2 min read
Photo: W.carter / Wikimedia Commons, CC BY-SA 4.0
Pension Credit is extra money for people over State Pension age on a low income, and the reason to consider it is not just the payment itself but the other help it opens up. Many pensioners who could get it never apply.
What Is Pension Credit, and Who Can Get It?
Pension Credit adds to your income if you live in England, Scotland or Wales, have reached State Pension age and have a low income. You can still qualify if you have other income, some savings or own your home. A couple can usually claim only when both partners have reached State Pension age.
It has two parts. Guarantee Credit tops up your weekly income to a minimum level, while Savings Credit is an extra amount for people who saved some money for retirement, for example in a personal or workplace pension. Only people who reached State Pension age before 6 April 2016 can get Savings Credit.
What Help Can You Get with Pension Credit?
Pension Credit can bring several valuable extras, because getting it means you may qualify for other help:
- Housing Benefit if you rent the property you live in, or Support for Mortgage Interest if you own it
- Council Tax Reduction from your local council
- Cold Weather Payments, and help with heating costs through the Warm Home Discount Scheme
- help with NHS dental treatment, glasses and transport to hospital appointments, if you get the Guarantee Credit part
- a free TV licence if you are aged 75 or over
Cold Weather Payments are made automatically when the average temperature in your area is recorded as, or forecast to be, zero degrees Celsius or below over 7 consecutive days between 1 November and 31 March. You do not need to apply for them.
How Do You Apply for Pension Credit?
You can apply up to 4 months before you reach State Pension age. If you have already applied for your State Pension, you can claim online through GOV.UK. You can also call the Pension Credit claim line on 0800 99 1234 (Monday to Friday, 8am to 6pm), and a friend or family member can call for you. The third route is a paper claim form, which you can print from GOV.UK or ask for on the claim line. Have your National Insurance number, details of your income, savings and investments, and your bank details ready.
Once you have reached State Pension age, a claim can be backdated by up to 3 months if you qualified during that time. Claiming late therefore means losing anything owed before those three months, which is a good reason to check sooner rather than later.
GOV.UK's Pension Credit calculator gives an estimate of whether you might qualify and how much you could get. Charities such as Age UK and Citizens Advice give free help with checking entitlement and filling in the claim.
General information, checked against the sources below at the time of writing. Rules, rates and deadlines change, often each April; confirm with GOV.UK, the council or the organisation concerned before you rely on them. For advice on your own case, Citizens Advice is free.
