State pensioner couples will receive an additional £66.60 per month from July, following an increase in Pension Credit payments from the Department for Work and Pensions (DWP). The hike means eligible couples will now receive a joint weekly rate of up to £363.25, up from the previous £346.60, representing a weekly increase of £16.65.
Pension Credit Breakdown
Pension Credit comprises two parts: Guarantee Pension Credit and Savings Pension Credit. Depending on their circumstances, claimants may be eligible for one or both components. Guarantee Pension Credit tops up weekly income for those on a low income, while Savings Pension Credit rewards individuals who have saved or have additional income in retirement.
Claimants do not need to have paid National Insurance contributions, and eligibility is not affected by employment status. However, different rules apply for each part. Guarantee Pension Credit requires claimants to have reached State Pension age, while Savings Pension Credit is available to those who reached State Pension age before 6 April 2016.
Savings and Capital Impact
According to Turn2Us, claimants can apply for Guarantee Pension Credit regardless of savings and capital. However, savings above £10,000 are treated as income: every £500 over the threshold counts as £1 of weekly income when calculating Pension Credit. For example, £11,000 in savings would be counted as £2 weekly income.
Certain payments may be disregarded, including some benefit back payments, compensation payments (such as personal injury or government scheme payments), and money set aside for home purchase, repair, or adaptation. The disregard period can be fixed or indefinite, depending on the payment type.
How to Claim
Individuals can check their State Pension age using the calculator on the government website. Pension Credit can be claimed even if still working, and there is no requirement for prior National Insurance contributions.
