Pension credit has come under the spotlight after Chancellor Rachel Reeves announced only those claiming this or other means-tested benefits would be eligible for the Winter Fuel Payment this year.
Here, Which? reveals eight things you need to know about pension credit, including what it’s worth and how to check your eligibility.
1. It can top up your weekly income to £332.95
There are two parts to pension credit: guarantee credit and savings credit – and you may get one or both parts.
In 2024-25, if you are over state pension age (66), single and your income is less than £218.15 a week, then guarantee credit will top you up to that amount. For a couple, the combined income figure is £332.95.
Your income includes your state pension, other pensions, employment or self-employment earnings and most social security benefits.
If you're a carer, have severe disabilities or need to cover certain housing costs, you might qualify for more guarantee credit.
Find out more:2. You might be eligible for savings credit
Savings credit provides extra money if you’ve made some provision towards your retirement by saving, or with a pension other than the basic state pension.
Only people who reached state pension age (SPA) before 6 April 2016 qualify to claim savings credit. If you reached SPA on or after 6 April 2016, you can still get guarantee credit.
The maximum savings credit you can get per week is £17.01 for a single person and £19.04 for a couple.
To qualify, you must have a minimum income in 2024-25 of £189.80 a week if you're single, and £301.22 a week if you're a couple.
For every £1 by which your income exceeds this savings-credit threshold, your savings credit is reduced by 40p.
Find out more3. You can get it even if you have savings
Pension credit is separate from your state pension and having savings, a private pension or owning a home are not necessarily barriers to receiving it.
If you have £10,000 or less in savings and investments, this will not affect your entitlement to guarantee or savings credit.
If you have more than £10,000, every £500 over £10,000 counts as £1 income a week. For example, if you have £11,000 in savings, this counts as £2 income a week.
Find out more4. It’s a gateway to other benefits
Depending on your circumstances, there are some additional allowances and benefits that you may get via pension credit in addition to the Winter Fuel Payment:
So it's worth claiming pension credit, even if you're only entitled to a few pounds, as it can help you to qualify for other benefits.
Find out more:5. You need to apply soon to keep the Winter Fuel Payment
The Winter Fuel Payment is an annual payment to help pay for your gas or electric heating in winter. If entitled, you would usually receive it at the end of January.
It’s been confirmed by the government that in 2024-25, it will be worth £300 for households with someone aged 80 and over, and £200 for households with someone aged 66-79.
The qualifying week will be 16-22 September, and anyone who is entitled to pension credit for at least one day of the qualifying week will have automatic entitlement to Winter Fuel Payment.
The last date for making a backdated claim for pension credit (assuming you meet the entitlement conditions for the previous three months) is 21 December.
Find out more6. It takes minutes to check if you’re eligible
You’ll need details of your earnings, benefits and pensions, and your savings and investments. You’ll also need the same details for your partner if you live with them.
If you would prefer to have a chat with someone, you can use the Pension Service helpline on 0800 731 0469 between Monday to Friday from 8am to 6pm.
7. You can apply before your 66th birthday
You can start your application up to four months before you reach state pension age.
You can apply any time after you reach state pension age but your application can only be backdated by three months. This means you can get up to three months of pension credit in your first payment if you were eligible during that time.
Find out more:8. You can apply online, by phone or post
If eligible, you can apply for pension credit in three ways:
Online Phone PostTo claim, you will need your National Insurance number, information about your income, savings and investments, and your bank account details.
source https://www.which.co.uk/news/article/things-to-know-about-pension-credit-a9OvR6I2ZvT6