Pension Credit (PC)

A means-tested ‘top up’ benefit for older people who have reached state pension age and are on a low income. Additional amounts can be payable for those receiving disability benefits.

For a couple’s Pension Credit claim - both have to have reached state pension age –otherwise the likely means-tested benefit to claim will be Universal Credit.

Your entitlement to Pension Credit is affected by your income, savings and capital (you can still get PC if you have some savings and or capital and your income is still low enough), but you do not need to have paid national insurance contributions. 

Pension Credit has two elements. A ‘guarantee credit’, which brings your income up to a minimum level, and a ‘savings credit’. This is for people aged over 65 who reached state pension age before 6 April 2016 and whose income is at least a certain level. Savings credit has been phased out and you now cannot qualify for it for the first time.

Who can claim?

You qualify for guarantee credit of Pension Credit if all of the following apply:

• You have reached state pension age
• Your income is low enough
• If part of a couple –both of you have reached state pension age
• You are not part of a mixed age couple (at the time of wishing to claim, one of you is pensionable age and the other is working age)
• You are in Great Britain, you satisfy the ‘habitual residence test’ and the ‘right to reside test’, and you are not a ‘person subject to immigration control’

You  can check your state pension age at, www.gov.uk/state-pension-age.

Pension Credit can now include additions if you are responsible for a child or young person. 

How much do you get?

Pension Credit is calculated using the information you provide – basic amounts are included for you and your partner, as can amounts for children.

The actual amount you get depends on your circumstances – including whether you have a severe disability or you are a carer, care for a child or young person, your income and (if you have capital over £10,000), your capital.

The circumstances (including the income and capital) of your partner are also taken into account.

You can start you Pension Credit application 4 months before you reach state pension age; PC can be backdated 3 months.

How do you claim?

Pension Credit claims can be started by phoning the Pension Service on 0800 991 234.

Alternatively – form PC1 can be requested from the Pension Service – or a copy can be printed and filled in via –www.gov.uk/government/publications/pension-credit-claim-form—2.

Online (quicker) claims can now be made –via - www.gov.uk/pension-credit/how-to-claim.