Pension Credit

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Pension Credit is a tax-free weekly payment which provides older people with a minimum level of income and subsidises those on a modest income who have made savings for their retirement.

Therefore, it tops up your income. It is paid in two parts and it is possible to receive both:

  • Guarantee Credit (for people over the female State Pension Age)
  • Savings Credit (for people over 65 years of age)

You can get both Guarantee Credit and Savings Credit or either individually, depending on your circumstances.

How do I qualify for Pension Credit?

• Age restrictions as above although for a couple only one of you has to be over this age

• You must have income (including capital) below a certain level

• You must be habitually resident in the UK

• You must not be subject to immigration control

Changes to the age restriction

The minimum qualifying age for receiving Pension Credit will increase in line with increases in State Pension age for women. Therefore, it will increase from 60 to 68 between 2010 and 2046.

Pension Credit and other benefits

If you receive Pension Credit  you are likely to qualify for Housing Benefit and rate relief as a tennant and Rates Relief if you are a Home Owner.  You may also qualify for help with your mortgage interest payments.

If receiving guarantee credit this will passport recipients to help with;

  • Rent
  • Rates
  • Health costs such as glasses and dental treatment

If you are in receipt of Guarantee Credit you will also be eligible to apply for Social Fund Payments (Funeral Payments, Community Care Grant, Budgeting Loans, Winter Fuel Payments, Cold Weather Payments, Funeral Payments).