Married couples of state pension age could be handed up to £4,300 in the form of a Department for Work and Pensions (DWP) benefit: Pension Credit. This benefit provides extra money to help with living costs if you are over State Pension age and on a low income.
What is Pension Credit?
Pension Credit gives you extra money to help with your living costs if you are over State Pension age and on a low income. It can also help with housing costs such as ground rent or service charges. The benefit, worth up to £4,300 a year, is separate from your State Pension.
You can get Pension Credit even if you have other income, savings or own your own home. If you receive Pension Credit, you can also get other help like Housing Benefit if you rent the property you live in, a Cold Weather Payment, or Support for Mortgage Interest if you own the property you live in.
Additional Benefits
Other gateway benefits include a Council Tax Reduction, a free TV licence if you are aged 75 or over, and help with NHS dental treatment, glasses and transport costs for hospital appointments, if you get the Guarantee Credit part of Pension Credit.
Further assistance includes help with your heating costs through the Warm Home Discount Scheme and a discount on the Royal Mail redirection service if you are moving house.
Eligibility and Calculation
When you apply for Pension Credit, your income is calculated. If you have a partner, your income is calculated together. Pension Credit tops up your weekly income to £238 if you are single and your joint weekly income to £363.25 if you have a partner.
If your income is higher, you might still be eligible for Pension Credit if you have a disability, you care for someone, you have savings or you have housing costs.
Savings Threshold
If you have £10,000 or less in savings and investments, this will not affect your Pension 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.
You might be able to use the Pension Credit calculator to check your eligibility and get an estimate of how much you could get.
