What is Pension Credit?
Pension Credit is an income-related benefit that offers extra money to help with your living costs. It’s available to those over State Pension age and is especially beneficial if you’re on a low income. Importantly, you can receive Pension Credit even if you have other income, savings, or own your home.
Please note, the following information is subject to change based on future government updates or policy changes.
Types of Pension Credit
- Guarantee Credit: This tops up your weekly income to £218.15 if you’re single, or to £332.95 for couples. This ensures you have a minimum level of income.
- Savings Credit: Available for those who reached State Pension age before April 6, 2016, and have some savings for retirement. This could add up to £17.01 a week for singles or £19.04 for couples.
Benefits
Pension Credit does more than just supplement your income. It can also help you with housing costs like ground rent or service charges. Additionally, being on Pension Credit qualifies you for several other forms of financial assistance:
- Housing Benefit: If you rent your home.
- Support for Mortgage Interest: If you own your home.
- Council Tax Discount: Reducing your local tax liability.
- Free TV Licence: For those aged 75 or over.
- NHS Costs: Including dental treatments and glasses.
- Heating Costs: Through the Warm Home Discount Scheme.
- A Discount on the Royal Mail Redirection Service: If you’re moving house.
Eligibility Criteria
To be eligible for Pension Credit, you must:
- Live in England, Scotland, or Wales.
- Have reached the State Pension age.
- Include your partner in the application if you live together.
Those from the EU, Switzerland, Norway, Iceland, or Liechtenstein generally need settled or pre-settled status under the EU Settlement Scheme.
Application
You can start your application up to four months before reaching State Pension age and can apply any time after reaching it. However, it’s possible to backdate your application by up to three months. Additionally, you can apply online, by phone or by post.
Reporting Changes
You must report any changes in your circumstances to the Pension Service. This includes changes in your income, living arrangements, or personal details. Consequently, failing to report these can affect the amount of Pension Credit you receive.
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