Updated July 2012
About Pension Credit
What is Pension Credit?
Pension Credit tops up weekly income to a guaranteed minimum level. It is a tax free payment for those who:
- have reached the minimum qualifying age, and
- live in Great Britain.
Someone may still get Pension Credit if they:
- have not paid National Insurance contributions
- have some savings or a small pension
- live with their grown-up family
- own their own home.
There are two types of Pension Credit – Guarantee Credit and Savings Credit.
What is The Pension Credit qualifying age?
The Pension Credit qualifying age is gradually increasing to 66 by 2020. To find out the date from which your customer qualifies, you can use the State Pension age calculator.
Pension Credit Guarantee Credit
Pension Credit Guarantee Credit ensures no one who has reached the qualifying age has to live on a weekly income of less than £142.70 for a single person or £217.90 for a couple. This amount may be more for those who:
- are severely disabled
- have caring responsibilities, or
- have certain housing costs, such as mortgage interest payments.
Find out more about Changes to the State Pension age and Pension Credit qualifying age.
Pension Credit Savings Credit
Savings Credit may be paid on its own or with the Guarantee Credit. To get it a person must:
- be aged 65 or over
- have made some provision towards retirement such as savings or a second pension, and
- live in Great Britain.
If they have a partner, at least one of them must be 65 or over to get the Savings Credit.
The Savings Credit can be up to:
- £18.54 a week if they are single
- £23.73 a week if they have a partner
People may still get the Savings Credit even if the money they have coming in is up to about:
- £189 a week if they are single
- £277 a week if they have a partner
This amount may be more for those who:
- are severely disabled
- have caring responsibilities, or
- have certain housing costs, such as mortgage interest payments.
How do people find out if they’re likely to get Pension Credit?
There are three key questions when considering whether a pensioner may get Pension Credit:
- How old are they?
- What is their weekly income?
- Do they have any savings?
If they are under 65:
- Is their weekly income less than £142.70 if they are single or £217.90 if they are a couple?
- Have they got savings of less than £10,000?
If they are over 65:
- Is their weekly income below £189 if they are single or £277 if they are a couple?
- Have they got savings of less than £10,000?
People who have more income or savings than this may still qualify for Pension Credit. But these questions are a good basic indication of who is likely to qualify.
For more details, pensioners can check online without giving any personal details by using the Pension Credit Calculator.
Finding out more about Pension Credit
We have developed materials that you and your organisation can use to increase your knowledge and understanding of Pension Credit. These range from quick guides to more technical guidance:
- About Pension Credit (29KB)
(updated July 2012) - Pension Credit Frequently Asked Questions (44KB) (updated July 2012)
- Quick guide to Pension Credit (21KB) (updated July 2012)
- A detailed guide for advisers Pension Credit for advisers and others