Entitlement to Pension Credit

Entitlement to each part of Pension Credit is calculated separately, so you could get either or both. You can apply for Pension Credit regardless of the amount of savings that you have. Any saving below £10,000 will be disregarded, while savings above this level will be deemed to provide an income of £1 per week for each £500 or part thereof. These amounts may be more if you are disabled, have caring responsibilities or certain housing costs, such as mortgage interest payments.

If you are aged 65 or over you may be entitled to Savings Credit if your income is more than the Savings Credit threshold. You may get the Savings Credit on its own or with Guarantee Credit. You may be entitled to Savings Credit if you:

• are aged 65 or over; and

• have made some provision towards your retirement such as savings or a second pension.

Savings credit may be paid if you or your partner are 65 or over and have qualifying income above your Savings Credit threshold. In 2015 the single person’s Savings Credit threshold rises from £120.35 to £126.50 a week, while the couple’s threshold rises from £192.00 to £201.50 a week.

In addition to reducing the number of eligible claimants by making the threshold higher, the government has reduced the maximum amount payable through Savings Credit – from £16.80 to £14.82 per week for a single person, and from £20.80 to £17.43 per week.