What is Pension Credit? How to use calculator, who is eligible to claim, how to apply and how much you may get

Recently, the Department for Work and Pensions warned that around 850,000 households around the UK are thought to be missing out on vital Pension Credit support, with an estimated £1.7 billion in the benefit going unclaimed.

As the cost of living crisis continues to affect families across the country, it’s imperative that those eligible for financial help take up the opportunity for assistance.

This is everything you need to know about Pension Credit - from who is eligible, how to apply to how much you could get.

What is Pension Credit?

Pension Credit is a type of benefit that pays out extra money to help with living costs if you’re over State Pension age and on low income. Pension Credit is separate from your State Pension, and you can get Pension Credit even if you have other income, savings or your own home.

Pension Credit can additionally help with housing costs, such as ground rent or service charges.

You might get extra help if you’re a carer, severely disabled, or responsible for a child or young person.

If you get Pension Credit, you can get other help such as:

If you get Pension Credit you’ll automatically get cold weather payments.

Who is eligible for Pension Credit?

To claim Pension Credit, you must live in England, Scotland or Wales and have reached State Pension age to qualify for Pension Credit.

To find out more about Pension Credit in Northern Ireland, you can do so on the Northern Irish Government website.

The State Pension age is the earliest age you can start receiving your State Pension, and it can be different to the age that you get a workplace or personal pension. It’s important to note that the State Pension age is currently under review, and may change in the future.

You can use the age checker tool on the Government website to check when you’ll reach State Pension age, your Pension Credit qualifying age and when you’ll be eligible for free bus travel.

If you have a partner, you must include them on your application for Pension Credit.

You’ll 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.

A partner is defined as 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”.

When applying for Pension Credit, your income will be calculated. If you have a partner, your income will be calculated together.

What counts as income?

The Government states that income includes your State Pension, other pensions, earnings from employment and self-employment and most social security benefits, such as Carer’s Allowance for example.

However, not all benefits are counted as income.

For example, the following are not counted:

If you are entitled to a personal or a workplace pension which you have not yet claimed, the amount you expect to get still counts as income. The same applies if you have deferred your State Pension.

If you have £10,000 or less in savings and investments, this will not affect your Pension Credit, however if you have more than £10,000, every £500 over £10,000 counts as £1 income a week.

So, for example, if you have £11,000 in savings, this would be counted as £2 income a week.

What will you get with Pension Credit?

Pension Credit tops up:

You could get extra money if you have other responsibilities and costs. These extra amounts are known as “Guarantee Credit”.

If you have a severe disability, you could get an extra £69.40 a week if you get any of the following:

If you care for another adult, you could get an extra £38.85 a week if:

If you and your partner have both claimed, or are both getting, Carer’s Allowance, you can both get the extra £38.85 a week.

You could claim an extra £56.35 per week for each child or young person you’re responsible for. This amount is increased to £66.85 a week for the first child if they were born before 6 April 2017.

The child or young person must normally live with you and be under the age of 20. If they’re 16 or over and under 20, they must be in (or accepted for):

If they’re in education, it must be for more than 12 hours a week on average.

You should note that if you get Tax Credits, you cannot claim this extra amount of Pension Credit for caring for a child, but you might be eligible for Child Tax Credits.

If the child or young person is disabled, you could get:

What if I have savings?

You could get the Savings Credit part of Pension Credit if both the following apply to you:

You’ll get up to £14.48 Savings Credit a week if you’re single. If you have a partner, you’ll get up to £16.20 a week instead.

You may still get some Savings Credit even if you don’t get the Guarantee Credit part of Pension Credit.

How do I use the Pension Credit calculator?

The Government has a Pension Credit calculator on its website that you can use to calculate how much you might get if you successfully apply for the benefit.

To use the tool, you’ll need details of your earnings, benefits, pensions, savings and investments. You’ll need the same details from your partner as well if you have one.

Before you start, you should know that you cannot use if the calculator if you or your partner:

When you begin the calculator, you’ll be asked for your age, gender, where you live, if you’re registered as blind, if you live alone, the type of accommodation you live if, if you have a partner and if you or your partner own any property or land.

How do I claim Pension Credit?

To claim Pension Credit you’ll need to make an application. You can start your application up to four months before you reach State Pension age. You can apply any time after you reach State Pension age, but you can only backdate your claim by three months.

You’ll need the following information for your application, as well as your partner if you have one:

You’ll also need your bank account details.

Depending on how you apply, you may also need your bank or building society name, sort code and account number.

You can use the online service to apply if you’ve already applied for your State Pension.

Alternatively, you can apply over the phone by calling the Pension Credit claim line on 0800 99 1234. Lines are open Monday to Friday, 8am to 6pm.

You can also apply via post by printing out and filling in the Pension Credit claim form, which you can find on the Government website, and sending the completed form to the Pension Service at:

The Pension Service 8

Post Handling Site B

Wolverhampton

WV99 1AN