The Government introduced Pension Credit in October 2003, a new type of means tested benefit for people over 60.
Pension Credit is worked out based on the level of income and savings that you have.
It is made up of two elements: the Guarantee Credit and the Savings Credit.
How to Apply
To apply, all you need to do is phone the Pension Credit freephone application line 0800 99 1234. An adviser will complete an application form over the telephone with you then send it out for you to check, sign and return.
For people approaching pension age, when you retire your entitlement to Pension Credit will be calculated at the same time as your basic state pension is worked out.
Who is Eligible?
Guarantee Credit
Guarantee Credit will be paid to pensioners over 60.
You will probably get the Guarantee Credit if your income is less than:
- £119.05 a week if you are single
- £181.70 a week if you are a couple
Savings Credit
Savings Credit will be paid to a single person or a couple where at least one of you is aged 65 or over.
It rewards you for having certain types of income and savings such as a:
- Private or works pension
- Paid job
- Savings over £6,000 (£10,000 if you live in a care home)
Dependant Children
Pension Credit does not give allowances for dependant children – you are advised to claim the new Child Tax Credit if you are a pensioner who has dependant children.If you are over 60 and get Income Support/Minimum Income Guarantee, the Pension Service will work out how much Pension Credit you qualify for before 6 October 2003 and they will write to you. The Pension Service will also write to all those over 60 and not in receipt of Income Support/Minimum Income Guarantee between October 2003 and June 2004 with an information pack about Pension Credit.
Qualifying for Pension Credit
What if I qualify for the Guarantee Credit?
Guarantee Credit works in the same way as Income Support / Minimum Income Guarantee.
If you qualify for Guarantee Credit alone or along with Savings Credit you will be entitled to full Housing Benefit and/or Council Tax Benefit less any non-dependant deductions which apply. (A non-dependant is an adult over 18 living with you who is not your partner. We apply a deduction to your Housing Benefit and/or Council Tax Benefit based on their weekly income, which you will need to provide us with proof of.)
A claim for Housing Benefit and/or Council Tax Benefit can be made via form HCTB1, which is available from The Pension Service, or you may claim on the standard application form we provide.
What if I qualify for Savings Credit only?
If you qualify for Savings Credit only you will need to apply for standard Housing Benefit and/or Council Tax Benefit, and complete our joint application form.
The Pension Service tell us the amount of Savings Credit you qualify for and we take it into account when we work out your benefit but this does not mean you will lose out, Housing Benefit and Council Tax Benefit allowances have been increased so that you will not lose the money you gain in Pension Credit by getting less Housing Benefit and/or Council Tax Benefit.
The Pension Service will also give us your Assessed Income Figure - your total income and capital less any disregards that they apply. We add it to the Savings Credit that you qualify for to work out your Housing Benefit and/or Council Tax Benefit entitlement.
We will still need to ask you for proof of any Child Tax Credit and/or Child Benefit you receive.We also disregard the value of any Funeral Plan you have, so you must tell us if you have one and provide us with evidence of it.
Capital Limit of £16,000
Although there is no capital limit for claiming Pension Credit, the £16,000 limit still applies for Housing Benefit and Council Tax Benefit except where a pensioner is in receipt of the Guarantee Credit.
If you qualify for Savings Credit only and you have savings of £16,000 or more you will not get any Housing or Council Tax Benefit.
What if I don't qualify for any Pension Credit?
If you do not qualify for Pension Credits, The Pension Service will still give us your 'Assessed Income Figure' and you will need to apply for standard Housing Benefit and/or Council Tax Benefit.
We will ask you to provide us with verification of income, capital and any other information depending on your circumstances. You must also report all changes in income, capital, household and tenancy circumstances to us.
Frequently Asked Questions
How long will my Pension Credit award last?
Once your entitlement to Pension Credit is worked out, the assessment will be valid for a number of years. This will be known as the Assessed Income Period and if you are over 65 this could be for as long as five years, depending on your circumstances.
What if my circumstances change in this period?
Once your entitlement to Pension Credit is worked out, there are only certain changes you must report to The Pension Service e.g. if you marry, divorce or change address.
The Pension Service will tell you exactly what you must report to them. But you can ask for a re-assessment if something changes and you think you would be entitled to more Pension Credit.
For more information on the Pension Credit please contact the Pension Credit application line on 0800 99 1234
How are Housing Benefit and Council Tax Benefit affected?
The rules for Housing and Council Tax Benefit for people over 60 are going to change to bring them in line with Pension Credit.
An important change is that you will not have to fill in a review form every year.
Each year we normally send you a review claim form to complete to allow us to extend your benefit. From 6 October 2003, we will no longer have to review any pensioners annually so you will not be sent a review form to fill in.
What changes do I have to tell the Housing Benefit and Council Tax Benefit Section about?
Once your entitlement to Pension Credit is worked out, the assessment will be valid for a number of years. This will be known as the Assessed Income Period and if you are over 65 this could be for as long as five years, depending on your circumstances.
During this time if certain changes in your circumstances occur, you must still tell us about them.
If you tell The Pension Service about a change in circumstances that will affect your Housing Benefit and/or Council Tax Benefit, they will forward this information to us.
What if a non-dependant moves into my home or they have a change in income?
Firstly, you must notify us of this change when it happens.
From 6 October 2003, if a non-dependant joins your household, and this means that you will get less Housing Benefit and/or Council Tax Benefit, we will not apply this change until 26 weeks after the date that it occurs, so your benefit will not change until after the 26 weeks.
Similarly, if a non-dependant who is living with you has a change in income that would result in a larger non-dependant deduction being applied to your Housing Benefit and/or Council Tax Benefit, we will not apply this change until 26 weeks after the date it occurred.
How do I contact The Pension Service?
If you have any queries about Pension Credit you should telephone the freephone application line for advice.
For any other pension-age related enquiry you should contact The Pension Service directly:
The Pension Service
PO Box 10141
HQ5
Dundee
DD1 9ZP
Tel: 0845 60 60 265
To apply for Pension Credit telephone the freephone application line on (0800) 99 1234
