Pension Credit is a crucial financial support system provided by the Department for Work and Pensions (DWP) for eligible state pensioners on a low income.
If you are living with your partner, you may be entitled to a weekly payment of up to £346, which is meant to help with daily living expenses. This benefit is paid in addition to your regular State Pension.
How Pension Credit Works
Pension Credit offers additional financial assistance to pensioners living in the UK. Even if you have other sources of income, savings, or even own your home, you can still apply for this benefit. Whether you apply as an individual or as a couple, the payments are made directly to boost your income.
For couples living together, the weekly Pension Credit tops up your combined income to £346. Additionally, if one of you has a severe disability, you could receive an extra £82.90 on top of the base amount.
Recent Changes to Pension Credit Payments
In April 2024, the DWP increased the Pension Credit amount by 4.1%, which is in line with the annual increase in the Average Weekly Earnings (AWE) index.
This means that pensioners will now receive slightly higher amounts compared to the previous year. Along with this increase, the new and basic State Pension rates also received a 4.1% increase.
For the updated figures:
- Single pensioners will now receive £227.10 (an increase from £218.15).
- Couples will now receive £346.60 (an increase from £332.95).
What Pension Credit Entitles You To
Beyond the weekly payments, claiming Pension Credit can unlock a variety of additional financial benefits, which can be crucial for those on a low income. On average, Pension Credit is worth around £4,300 per year.
Additionally, you may be entitled to:
- Help with housing costs (such as rent).
- Council Tax discounts.
- The Winter Fuel Payment.
- Assistance with NHS treatment costs.
- A free TV licence if you are aged 75 or over.
Eligibility for Pension Credit
To qualify for Pension Credit, you must meet the following criteria:
- Be living in England, Scotland, or Wales.
- Have reached the State Pension age (currently 66 for both men and women).
When applying, the DWP will assess your income, which includes your State Pension, any other pensions, earnings, and social security benefits.
Savings and Pension Credit
You can have £10,000 or less in savings or investments without it affecting your entitlement to Pension Credit.
However, for savings over this amount, each £500 over £10,000 counts as £1 income per week. For example, if you have £11,000 in savings, the DWP will treat it as an additional £2 income per week.
How to Apply for Pension Credit
You can apply for Pension Credit at any time after you reach State Pension age. It’s advisable to use the DWP’s Pension Credit calculator to estimate how much you may receive.
You can begin your application up to four months before reaching State Pension age, and once you apply, you may be eligible for backdated payments for up to three months.
Pension Credit is a valuable resource for low-income pensioners, providing much-needed financial support. If you meet the eligibility criteria, it is important to apply as soon as possible to maximize the benefits.
The additional support with housing costs, Council Tax, and other financial aids can make a significant difference in your daily living.
FAQs
What is the maximum amount I can get from Pension Credit?
You can receive up to £346 per week if you are a couple, or £227.10 if you are a single pensioner. Additional amounts may apply if you or your partner have severe disabilities.
Can I still claim Pension Credit if I have savings?
Yes, you can still claim Pension Credit with savings of up to £10,000. If your savings exceed that amount, it could impact the benefit, with every £500 over £10,000 counting as £1 income per week.
How far back can I claim Pension Credit?
You can backdate your Pension Credit claim by up to three months. This means if you are eligible, you could receive up to three months of payments in your first payment.