Pension Credit Advice 2014-15- What Entitlements you can Claim.
Pension Credit Entitlement - Advice information. (Updating
in progress - 4th October 2014)
What is Pension Credit?
In reality, Pension Credit is a benefit to guarantee you a minimum income
once you are at pension credit qualifying age. In other words, once you
reach the ever increasing state pension age you will get a guaranteed income
over and above the basic state pension, which for a single person is
currently maximum of 113.10. If they had called it Pension Age Guaranteed
Entitlement (PAGE) it would have been better understood, for that is what it
The income guarantee for those at state pension age is currently 148.35
for a single person and 226.50 for a married couple who are both at the
state pension age. So if you are a single pensioner having only the state pension as income, the government will top up a further 35.25 to take you up
to the guaranteed income level of 148.35.
Likewise for a married couple - both pensioners - if your only income is
the joint 180.90 basic state pension, you will also receive their so-called
Pension Credit of 45.60 to take you up to the basic guaranteed income of
There is a catch! If you have other income such as a part time job, and
that money together with your basic state pension is more than 148.35 per
week, you will already be getting the guaranteed income, so you will not get
the Pension Credit addition.
Editing in progress >>>
If you or or partner have reached the Pension Credits Qualifying Age, then you will probably
qualify for Pension Credit - providing that your income is below £148.35 per
week. If you have a partner, and your joint income is less than £226.50, then
you should also qualify for Pension Credit.
Together with this, there is the possibility - if you are
now sixty five or over, that you could also get a further sum if you have 'saved'
towards your retirement. This could mean as much as £44.60 for a single person
and £56.95 if you are living with a partner.
This advice is meant as a guide only. Please check
with your local DWP Office.
Everyone who has reached the Pension Credit Qualifying Age in the
UK is entitled to Pension Credit, so yes, if you are on pension
credit you are allowed to work, but it will affect and added Pension
Credit you might have received!.
What you can claim on Pension Credits
Guaranteed Pension Credit
Guarantee Pension Credit simply guarantees that you will get £148.35
per week if you are a single person, and £226.50 if you are living
with a partner. If you already earn that sum - either as a single
person, or as having a partner, then you do not qualify for any
extra money from Pension Credit. (IMPORTANT!) So if you are working
on Pension Credit be aware of the figures.
The 'magic' figures again.......
- £148.35 a week guaranteed if you are a single person of the
Pension Credit Qualifying Age.
£226.50 a week guaranteed if you have a partner and you are
at the Pension Credit Qualifying Age.
- (Together with this, you may get more if you are
disabled, have housing costs which are eligible - such as
mortgage interest payments, or you have responsibilities as
Savings Pension Credit
Also, if either you or your partner
are aged 65 or more, you could also get a 'reward' if you have
'saved' for your retirement.
Providing you have saved towards your retirement,
the reward could be as much as.....
- £18.06 per week if you are single person
£22.89 per week if you have a partner
- This savings credit may be in addition to your
Guaranteed Pension Credit Entitlement, or it may simply be the savings
credit that you receive - depending upon your income and
- There are a few different ways in which you could
qualify for this 'Savings Credit' such as your own savings
towards your retirement, or if you have taken out additional
pensions for this reason.
- It is possible to get this Savings Credit, even if -as a
single person - you have 'income of £190.00 per week,
or if you have a partner, weekly income of up to £279.00
Together with that, if you or your partner have a
- Severe Disability.......or
- You look after a person who has a severe
disability.....or even if you have
- Housing costs such as mortgage interest payments
When To Claim for Pension Credit Payments - Backdating Pension
Credit Entitlement Payments
You can apply for Pension Credit up to four months
before your Pension Credit Qualifying Age, but you are not entitled to the money
until you have reached the Qualifying Age. If your partner is under 60 when you
apply, it is not a problem and does not matter.
Providing you are eligible to claim Pension
Credit Entitlement, you can get it backdated for up to three months from the
date you apply. The backdating will only apply if you were entitled
to Pension Credit for that three months, or part of it.
Changes to the Age of claiming Pension Credit
Gradually, the government is raising the
age of pension entitlement for women. From 2010 (April 6th) the age
of retirement for women will increase year by year. At the
same time - 6th April 2010 - the age of claiming Pension Credit will
also have been increased.
('Partner' means husband, wife, or civil partner,
or any person you live with as though you are either married or in a
You can apply for Pension Credit by calling 0800 99 1234
between 8.00am and 8.00pm Mondays to Fridays - NOT weekends
Can you get Pension Credit - Your Entitlement
If you are rich, you will not get Pension Credit.
For you to be able to get your Pension Credit entitlement - you have
to be 'entitled' to that credit.
Your earnings are taken into account before deciding
if you are entitled to Pension Credit. If you earn over a certain
amount, you will not qualify for the Pension Credit Entitlement. You
are only 'entitled' to Pension Credit if you meet certain earnings
criteria - rules. Not everyone over 60 yrs is 'entitled' to Pension
Credit. Only those who earn very little in total. The word
'entitlement' is not a good word for the government to use. Not
everyone is entitled! But the thinking was probably that
'entitlement' made people feel good about being able to get something.
If you have 'earnings' and these will include
things like ......
- Your STATE pension - or any other pension.
- Assistance Funds or Pension Protection Fund
- benefits such as Carer's allowance
- earnings from a job of any kind - including
your earnings after tax of any self-employed work you do.
- Savings and/or investments over total of £10,000
Earnings which will NOT be included in the
calculation for Pension Credit include ......
- Attendance Allowance - AA
- Disability Living Allowance - DLA
- Any Christmas Bonus - paid by the government!!!
- Housing Benefits
- Council Tax Benefits
- Your Savings - income, dividends and interest
are not included in the calculations for earnings BUT if you
have savings, then the government will count as £1 per week
towards your earnings entitlement for every £500 that you have
saved over and above £10,000. So, if you have savings of £10,021,
then the £21 over the £10,000 ceiling will count as a £1 a week
from 'earnings'. If you live permanently in a care home, then
the calculations are made over £10,000. The £500 steps over the
£10,000 are the same as before - £1 earnings calculated for
every £500 over the £10,000.
Savings and investments that are taken into
account include .....
- Money in the bank account - including
building societies or post office accounts.
- Savings you or your partner have at home - by
way of cash under the Pillow etc
- Premium Bonds and National Savings
- ISAs and PEPs Investments and savings.
- Any stock Market Shares or unit trusts
- Bonds of any kind
- Any Land or 'Property' you own - but not your
home where you live.
That must make you feel good about the money you put away for
your retirement or a rainy day!
On the plus side.....
- If you live with your grown up family, YOU
can still get Pension Credit. It is YOUR income that is taken
into account. The rest of the family can earn what they like -
it does not affect you claiming for YOUR Pension Credit.
- If you own your own home, it does not stop
you from applying.
- If you are only awarded a small sum for
Pension Credit, it may mean that you can get other help with
such things as Council Tax Benefit and also Housing Benefit.
You should be able to claim for Pension Credit,
Council Tax and Housing Benefit with the same phone call. (0800 99
1234 between 8.00am and 8.00pm Mondays to Fridays)
Self Employed - Self Assessed Taxpayers
For those who are self-assessed tax payers, you will realise that
the state pension earnings you get are actually taxable - annoying -
so you will need to forecast what your net earnings are for any
given tax year, and also estimate what your tax liability will be,
and make sure that the Pension credit Team are aware of this. If you
do this incorrectly, then you could end up facing having to pay some
of your Pension Credit back.
SO - Basically If you have reached the Qualifying Age for
State Pension and Pension Credit
If you are single you will probably be entitled to Pension Credit PROVIDING THAT your
income is less than £148.35 each week.
If you have a partner - any age - and your
weekly earnings are less than £226.50, you could be entitled to
You may even be able to get more - even if you earn more than the
figures above - if for instance either you or your partner are
severely disabled, or have mortgage interest payments to make.
If either you or your partner have reached the Pension Credit
Qualifying Age, then Pension Credit Scheme guarantees you an income of minimum
- Single person - £148.35 a week.
- Married or have partner £226.50 a week.