Pension Credit News: Details on State Pensioner Discounts and Freebies

What is Pension Credit? 

Pension Credit is a financial benefit provided by the UK government to help people who are of State Pension Age and have a low income. It ensures that older individuals have enough money to cover their basic living expenses. It is divided into two parts: guarantee credit and savings credit.  

Guarantee credit increases your weekly income to a minimum amount, while savings credit offers extra money if you've saved for retirement beyond the basic State Pension. 

Eligibility for Pension Credit 

To qualify for Pension Credit, you must meet the following requirements: 

Residency and Age 

a) Location: You must live in England, Scotland, or Wales 

b) Age: You must have reached the State Pension Age 

For People from the EU, Switzerland, Norway, Iceland, or Liechtenstein 

a) Settled Status: You and your family usually need settled or pre-settled status under the EU Settlement Scheme to qualify for Pension Credit. 

If You Have a Partner 

a) Application: You must include your partner in your application 

b) Eligibility: You are eligible if: 

1) Both you and your partner have reached the state pension age 

2) One of you is receiving housing benefits over the state pension age 

3) A partner can be your husband, wife, or civil partner if you live together 

4) Someone you live with as a couple, even if you are not married or in a civil partnership 

Your Income 

a) Income Calculation: When you apply for a Pension Credit, your income is assessed. If you have a partner, both incomes are combined. 

b) Higher Income Eligibility: Even if you have a higher income, you may still qualify for Pension Credit if you have a disability, care for someone, or have certain housing costs. 

What Counts as Income 

Your income includes: 

a) State pension 

b) Other pensions 

c) Earnings from employment or self-employment 

d) Most social security benefits include Carer’s Allowance 

What Does Not Count as Income 

Some benefits are not counted as income, including: 

a) Adult disability payment 

b) Attendance allowance 

c) Christmas bonus 

d) Child benefit 

e) Disability living allowance 

f) Personal independence payment 

g) Social fund payments like winter fuel allowance 

h) Housing benefit 

i) Council tax reduction 

If You’re Away from Great Britain 

a) Short Absences: You can continue to receive Pension Credit if you're away from Great Britain for four weeks or less, such as for a holiday. 

b) Permanent Move: You cannot apply for Pension Credit if you're already outside Great Britain, nor can you receive it if you're moving away permanently. 

How much is Pension Credit in 2024/25? 

The Pension Credit is available in two parts: guarantee credit and savings credit. 

Guarantee Credit 

The income is up to: 

a) If you're single, your weekly income is topped up to £218.15 

b) If you're married or in a civil partnership, your weekly income is topped up to £332.95 
 

Savings Credit 

If you reach State Pension Age before 6 April 2016, you can get this extra money. It is available if you have saved for retirement beyond the basic State Pension, such as through another pension or savings. 

The extra income is up to: 

a) £17.01 a week for a single person. 

b) £19.04 a week for married couples, civil partners, or a partner you live with as if you were married. 

Other Benefits You Can Get with Pension Credit 

Even if you only get a small amount of Pension Credit, it’s still worth applying for. This is because it can help you qualify for other benefits, such as: 

Housing Benefit - Worth £1,000s/year 

If you receive any amount of guarantee credit and rent your home, you can get the maximum housing benefit from your local council. This can be worth hundreds of pounds monthly and may cover your entire rent. 

If you receive savings credit but do not guarantee credit, you might get some help with rent but not the full amount. 

The amount might be reduced if there are non-dependents living with you, or if your rent is considered too high. 

Winter Fuel Payment – Worth up to £300 

From winter 2024/25, if you're over the state pension age and receive a means-tested benefit like Pension Credit, you'll qualify for an annual winter fuel payment to help with energy bills. 

This payment ranges from £100 to £300 and is paid automatically to those who qualify. Stay updated with Pension Credit News to ensure you receive these payments. 

Help with NHS Dental Care - Worth £1,000s/year 

If you receive any amount of guarantee credit, you're entitled to free NHS dental care. This can include anything from a simple check-up to full dentures. 

You don’t need to apply; just sign a declaration form when you visit your dentist. 

Council Tax Discounts - Worth £1,000s/year 

If you get the guarantee credit part of the Pension Credit, you’re entitled to the maximum council tax reduction, which might cover your entire council tax bill. If you receive savings credit, you may get a discount, but it typically won't be as much as those on guarantee credit. The reduction might be less if there are adults living with you who aren’t dependent on you. 

To apply for a council tax reduction, contact your local council. Discounts vary based on where you live. 

Conclusion 

Pension Credit is a vital support system for older people in the UK, offering financial aid and access to additional benefits. Even if you qualify for a small amount, claiming a Pension Credit can unlock substantial savings on housing, council tax, and NHS dental care. Staying updated with the latest Pension Credit News ensures you make the most of these opportunities, helping you maintain a stable and comfortable lifestyle in retirement. 

Interested in further enhancing your financial knowledge and retirement planning? Explore our courses and free resources at The Knowledge Academy to stay informed and empowered.