There is aid available to augment your state pension if you have a low income. It is accomplished via pension credit. Pension credit is a means-tested benefit, meaning that it is based on your earnings. There are two aspects to it: guarantee credit and savings credit.

You might be eligible for pension credit. According to the government, pension credit is worth more than £3,300 a year, yet over one-third of eligible people do not claim it. Forthcoming is all about the pension credit in UK.

What is guaranteed credit, exactly?

What is Guaranteed Credit

Guarantee credit will boost your weekly earnings to £182.60 for singles and £278.70 for couples in 2022-23. To be considered, you must first:

live in the UK and have reached the pension-credit eligibility age (the same as the state pension age). If you’re a woman, you must have achieved the state pension age of a woman born on the same day as you; if you’re a man, you must have achieved the state pension age of a man born on the same day as you.

If you are a carer, have a severe handicap, or have unique housing expenses, you may be entitled to additional guarantee credit.

The government examines your real income when you apply for guarantee credit.

It includes your primary and supplementary state pensions and any additional pension income, earnings from any job, and savings worth more than £10,000.

Your possessions and property are not protected, nor are your housing benefit, council tax reduction, or attendance allowance.

Benefits from additional pension credits

Depending on your circumstances, additional allowances may be applied to your Guaranteed Pension Credit application.

The Carer Addition may reward you with £38.85 per week if you are a carer and get Carer’s Allowance (2022-23).

The Severe Disability Addition may give you an additional £69.40 per week if you are severely disabled and receive disability benefits (2022-23).

If you have a child or have to pay housing costs, you may be eligible for a larger payment.

Warm Home Discount — a £150 payment (2022-23) to help those having trouble managing their energy expenses over the winter — may also be available.

It is good to apply for Pension Credit even if you are only eligible for a few pounds. It is because it may help you qualify for further benefits.

If you rent your home and get Guarantee Credit, you may be eligible for pension-age Housing Benefit. You may qualify for extra amounts under Pension Credit and Council Tax Reduction if you own your home and pay housing-related expenditures.

What is a savings credit, exactly?

What is Savings Credit

Individuals will get more funds from the government as an incentive to save for retirement. It is given to you in the form of a savings credit.

  • Only those who turned 65 before April 2016 are eligible for the savings credit. You may still qualify if you’re married and your spouse reached state pension age before April 6, 2016.
  • You have to meet specific requirements before becoming eligible for savings credit, which you still have to meet:
  • If you are single, you must make at least £158.47 per week, and if you are married, you must earn at least £251.70 per week in 2022-23.
  • You or your partner must be at least 65 years old and live in the United Kingdom.
  • You must have made arrangements for your retirement, such as savings or a second pension.
  • The maximum weekly savings credit for a single person is £14.48; for couples, it is £16.20.
  • The more money you have, though, the less credit you get for saving.
  • For every £1 your wage exceeds the savings-credit limit (£158.47 per week for a single person and £251.70 per week for a couple), your savings credit is reduced by 40p.
  • To figure out how much you’ll receive, add up your earnings.
  • If you have any savings, the first £10,000 is not included. Then you receive £1 for every £500 you have beyond that amount.
  • Work out your pension credit.
  • A pension credit calculator is available on the gov. UK website to assist you in determining your pension credit eligibility.
  • The calculator will approximate your pension credit payment based on your salary, benefits, pensions, savings, and investments.

How can I get a pension credit?

How can I get a Pension Credit

There are two methods to seek pension credit.

  • You may send form PC1 (available on the Gov. UK website) or phone The Pension Service at 0800 99 1234 to your local pension facility.
  • Visit The Pension Service’s Find your pension centre page to learn more about your pension centre and how to contact it.
  • You’ll need your NI number, income, savings, assets, and bank account details to submit a claim.
  • Pension Credit beneficiaries may get further help.
  • You may be entitled to the following advantages if you get Pension Credit
  • If you rent your house, you may be eligible for Housing benefits, Mortgage Interest Allowance, a free TV licence if you’re 75 or older, and help with NHS dental treatment, glasses, and hospital transportation costs.
  • aid with your energy bills

When to Apply?

You have up to four months to start your application before attaining the State Pension age.

After achieving the State Pension age, you may apply at any time, but you can only go back three months. If you were eligible at the time, your first payment might include up to three months of Pension Credit.

The following information about yourself and, if necessary, your partner will be required:

Income, savings, or assets with a National Insurance number on the date you wish to backdate your application (usually 3 months ago or the date you reached State Pension age)

Applying by phone or mail requires your bank account information.


Pension Credit may provide to over-65s with modest incomes. Pension Credit may pay rent and service expenses. If you’re a caregiver, seriously handicapped, or responsible for a kid or teen, you may qualify for further help. Pension Credit is available to those with pensions, savings, or property.

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