Pension Credit

Pension Credit is a means-tested benefit which depends on your income and savings. It is designed to provide those over qualifying age (see below) with a minimum level of income, and give extra cash to pensioners with modest incomes who have made savings for their retirement. The qualifying age for Pension Credit is gradually going up in line with the increase in womens State Pension Age (see page 72).

Pension Credit currently has two elements:

• the Guarantee Credit tops up your weekly income if it’s below £151.20 (single person) or £230.85 (couples) for those who have reached the minimum qualifying age; and

• the Savings Credit is an extra payment for those who have some savings or pension that brings their income to the required level (see page 75). To qualify you or your partner must be 65 or over but most people won’t be eligible for Savings Credit if they reach women’s State Pension Age on or after 6 April 2016.