The Department for Work and Pensions (DWP) is reducing payments for state pensioners who have £10,000 or more in savings under Pension Credit rules. This benefit, which can be worth up to £4,300 annually, consists of two components: Savings Credit and Guarantee Credit.
Who Can Claim Savings Credit?
If you reached State Pension age before 6 April 2016, or if you are in a couple where both partners did, you may be eligible for Savings Credit. There is no strict savings limit for Pension Credit, but savings over £10,000 will affect the amount you receive.
Age UK explains: "If you're a mixed-age couple (meaning only one of you is over State Pension age), you normally have to claim Universal Credit until you've both reached State Pension age. Then you might be eligible to claim Pension Credit as a couple."
Understanding Savings Credit
Savings Credit provides extra money if you have some savings or if your income is higher than the basic State Pension. It is available to those who reached State Pension age before 6 April 2016. You could receive up to £17.96 extra per week if you are single, or up to £20.10 extra per week if you are a couple.
Additional Benefits of Claiming Pension Credit
By claiming Pension Credit, you may also become eligible for other benefits, such as help with health costs and housing costs.
How to Claim Pension Credit
You can claim Pension Credit online at GOV.UK if you already receive State Pension and there are no children or young people included in your claim. Alternatively, you can call the Pension Credit claim line at 0800 99 1234, where an advisor can fill in the application over the phone. The lines are open Monday to Friday, 8am to 6pm.
Before you start, it is helpful to have the following details ready:
- Your National Insurance number
- Your bank account details
- Information about your income, savings, and investments
- Details of any pensions you have
- Details of any housing costs (such as mortgage, interest payments, or service charges)
- Your partner's details, if applicable
If you need assistance at any stage, contact your local Age UK.
