The Department for Work and Pensions (DWP) has implemented a new eligibility rule for Pension Credit, following the April change that began raising the state pension age from 66 to 67. This adjustment will save the Treasury £10 billion annually by the end of the current parliament.
Key Eligibility Requirements
To qualify for Pension Credit, applicants must live in England, Scotland, or Wales and have reached State Pension age. The state pension age increase started in April 2024, with one month added every two months until April 2028, when everyone will reach pension age at 67. Pension Credit eligibility follows the same timeline.
The DWP states: "You must live in England, Scotland or Wales and have reached State Pension age to qualify for Pension Credit." For individuals from the EU, Switzerland, Norway, Iceland, or Liechtenstein, they and their family usually need settled or pre-settled status under the EU Settlement Scheme. The deadline to apply was 30 June 2021, though some may still be able to apply.
Partner Inclusion and Income Calculations
Applicants must include their partner on the application. Eligibility applies if both partners have reached State Pension age, or if one is receiving Housing Benefit for people over State Pension age. A partner is defined as a husband, wife, civil partner (if living together), or someone living together as a couple without being married or in a civil partnership.
When applying, income is calculated jointly for couples. If entitled to a personal or workplace pension that has not been claimed, the expected amount still counts as income. Similarly, deferred State Pension amounts are counted as income. However, deferring State Pension does not build up extra amounts if the applicant or partner receives Pension Credit.
Savings and Investments Impact
Savings and investments of £10,000 or less do not affect Pension Credit. For amounts above £10,000, every £500 over counts as £1 income per week. For example, £11,000 in savings counts as £2 weekly income.
