Many households may not even know they are eligible for the payment scheme
Almost one million households across the UK are missing out on around £4,300 a year by not claiming pension credit. Around 910,000 pensioner households are missing out on the monthly boost as many don’t realise they are eligible for the payment.
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. For money-saving tips, sign up to our Money newsletter here
Pension credit eligibility
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 your partner on your application if you have one. 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’ll be eligible if either:
- you and your partner have both reached state pension age
- one of you is getting housing benefit for people over state pension age
Your income
When you apply for pension credit 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’re single
- joint weekly income to £363.25 if you have a partner
If your income is higher, you could still be eligible for pension credit 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
- most social security benefits, for example Carer’s Allowance
Not all benefits are counted as income. For example, the following are not counted:
- 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
- social fund payments like Winter Fuel Payment
If you’re entitled to a personal or workplace pension and you have not claimed it yet, the amount you’d expect to get still counts as income. If you’ve deferred your state pension, the amount of state pension you would get is counted as income.
Your savings and investments
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’re eligible you can use the pension credit calculator to check and get an estimate of how much you could get.
