Pension Credit

The qualifying age for getting Pension Credit increased for everyone to 66 in October 2020, in line with State Pension age. You can check your State Pension age on the gov.uk website. 

Since 2019, couples who make a new claim for Pension Credit must both be over pension age. If 1 person is over pension age and the other is not, the couple must claim Universal Credit instead. Find out more about Universal Credit.

Pension Credit is made up of 2 parts:

• Guarantee Credit
• Savings Credit

Depending on your circumstances, you may be entitled to either 1, or both parts.

Savings Credit is currently being phased out (see below for details).

To claim Pension Credit, you must be:

• present in Great Britain or Northern Ireland
• be 'habitually resident' and have a 'right to reside' in the UK, and
• not be subject to immigration control.

What is Guarantee Credit?

This part of Pension Credit can top up your income (such as your State Pension) to a set amount, to provide you (and your partner, if you have one) with a basic income to live on.

Extra amounts will be added if you have certain housing costs, a severe disability or caring responsibilities.

Even if you don't get much Guarantee Credit, it's always worth claiming as it can give access to other benefits (see 'Does Pension Credit affect access to other benefits?' below).

How is Guarantee Credit calculated?

Guarantee Credit is calculated by comparing your income with a set figure (the 'Appropriate Minimum Guarantee'). If your income is less than this amount, you're paid the balance as Guarantee Credit.

The Appropriate Minimum Guarantee is a standard rate of £218.15 a week if you're a single person and £332.95 a week for a couple. If your weekly income is less than this, Guarantee Credit will top it up to this amount.

You may receive additions to this standard rate:

• Severe disability – single person: £81.50
• Severe disability – couple (1 qualifies): £81.50
• Severe disability – couple (both qualify): £163
• Carer: £45.60

Since February 2019, you may also be given an additional amount if you're responsible for children unless you already get Child Tax Credit for those children.

The carer premium

The £45.60 a week 'carer premium' is available if you're eligible for Carer's Allowance or Carer Support Payment (in Scotland). Find out more about Carer's Allowance and Carer Support Payment.

You can get this amount in your Pension Credit even if you're not actually paid Carer's Allowance/Carer Support Payment (for example, because of another 'overlapping' benefit, such as State Pension) as long as you have an underlying entitlement.

What income and savings are taken into account?

All of your income is taken into account when calculating the Guarantee Credit, unless it's specifically ignored (for example, Disability Living Allowance, Personal Independence Payment (PIP)/Adult Disability Payment (ADP) (Scotland only), Attendance Allowance and Housing Benefit are all ignored).

Earnings are taken into account after tax, National Insurance contributions and half of any contributions to a private pension are deducted. A small additional amount of your earnings is ignored – between £5 and £20 a week, depending on your circumstances.

Savings below £10,000 will have no effect on your entitlement. You'll be counted as having an extra £1 a week income for every £500 (or part of £500) of savings that you have above £10,000.

Certain types of capital, such as the value of your home, personal possessions and the surrender value of insurance policies will be ignored.

For more information on your likely entitlement, you can use the Pension Credit calculator on the gov.uk website. 

What is Savings Credit?

Savings Credit was created to encourage people with a small income to save for retirement.

Savings Credit is currently being phased out. It may still be paid if you (and your partner, if you have one) are over 65, had reached State Pension age by 6 April 2016 and have qualifying income above a certain level.

The Savings Credit calculation is complex and the amounts paid are relatively small – the most you can get is £17.01 a week if you're single or £19.04 a week for a couple.

For more information on your likely entitlement, you can use the Pension Credit calculator on the gov.uk website.

How do you claim Pension Credit?

In England, Scotland and Wales, call 0800 99 1234 (textphone 0800 169 0133). In Northern Ireland, call 0808 100 6165.

When you phone you'll need:

• your National Insurance number
• information about any money you have coming in
• details of any savings and investments you have
• information on any service charges you must pay for your home (for example, mortgage interest payments)
• details of the bank account you would like the Pension Credit paid into.

Does Pension Credit affect access to other benefits?

If you're awarded the Guarantee Credit of Pension Credit, you may be entitled to:

• full help with your rent
• help from your local council towards your Council Tax (find out more about help with Council Tax)
• help with NHS charges, vouchers for glasses and hospital travel fares.

It might also allow you access to certain schemes or tariffs from your gas, electric and water providers.

If you're entitled to either part of Pension Credit, you may be able to get a Funeral Expenses Payment to help with funeral expenses if a partner, child, close relative or close friend has died.

You'll also be entitled to a free TV licence if you're over 75 and receive either part of Pension Credit. 

You might also qualify for help to cover the interest payments on your mortgage or eligible home improvement loan through a Support for Mortgage Interest (SMI) loan.

Receiving Pension Credit means you'll automatically receive the Winter Fuel Payment in 2024. This is a one-off payment of £200 if you were born between 23 September 1944 and 22 September 1958. It's £300 if you were born before this.

If you receive the Guarantee part of Pension Credit you'll also automatically receive the £150 one-off Warm Home Discount off your fuel bills.

You'll also automatically get the Cold Weather Payment of £25. This is paid when the temperature averages 0°C for 7 consecutive days. Cold Weather Payment isn't available in Scotland. Instead, you'll automatically receive a Winter Heating Payment of £58.75.