Around 910,000 pensioner households across the UK are missing out on approximately £4,300 a year by not claiming Pension Credit. Many households may not even realise they are eligible for the payment scheme.
Who qualifies for Pension Credit
Pension Credit helps those over state pension age with living costs and housing costs if they are also on a low income. If you are state pension age with a total income below £238 a week, or £363 for a couple who are both pension age, you are likely to receive Pension Credit.
If your total income is below £250 a week, or £380 for a couple, there is a possibility you will qualify for Pension Credit, depending on your circumstances. There is a higher threshold if you claim certain disability benefits or have caring responsibilities, so if this applies to you it is worth checking if you are eligible.
Eligibility and income rules
You must live in Wales, England or Scotland and have reached state pension age to qualify for Pension Credit. If you have a partner, you must include them on your application. A partner is either your husband, wife or civil partner - if you live with them - or someone you live with as a couple, without being married or in a civil partnership.
You will be eligible if either you and your partner have both reached state pension age, or one of you is getting housing benefit for people over state pension age. When you apply, your income is calculated, and if you have a partner, your income is calculated together.
Pension Credit tops up your weekly income to £238 if you are single, or joint weekly income to £363.25 if you have a partner. If your income is higher, you could still be eligible if you have a disability, you care for someone, you have savings, or you have housing costs.
Your income includes state pension, other pensions, earnings from employment and self-employment, and most social security benefits, for example Carer's Allowance. Not all benefits are counted as income. For example, Adult Disability Payment, Attendance Allowance, Child Benefit, Christmas Bonus, Council Tax Reduction, Disability Living Allowance, Housing Benefit, Pension Age Disability Payment, Personal Independence Payment, Scottish Adult Disability Living Allowance, and social fund payments like Winter Fuel Payment are not counted.
Savings and how to check
If you are entitled to a personal or workplace pension and you have not claimed it yet, the amount you would expect to get still counts as income. If you have deferred your state pension, the amount of state pension you would get is counted as income.
If you have £10,000 or less in savings and investments, this will not affect your Pension Credit. If you have more than £10,000, every £500 over that amount counts as £1 income a week.
To find out if you are eligible, you can use the Pension Credit calculator to check and get an estimate of how much you could get.
