If you’ve reached State Pension age, you might be able to apply for Pension Credit. Pension Credit is a weekly benefit to boost your income. It’s based on how much money you have coming in.
New rules for getting Winter Fuel Payments
The Winter Fuel Payment is a payment you can get once a year to help you pay for heating during the winter.
The rules for Winter Fuel Payments have recently changed. From winter 2024 you’ll now only get the payment if you or your partner get certain benefits, like Pension Credit.
It’s worth applying for Pension Credit even if you don’t think you’ll get much. If you get Pension Credit you’ll be able to get other money and help like the Winter Fuel Payment.
You’ll get a Winter Fuel Payment if you’re entitled to Pension Credit at any point between 16 and 22 September 2024.
You’ll still get a Winter Fuel Payment if you successfully apply for Pension Credit by 21 December – as long as your Pension Credit is backdated to any date between 16 and 22 September.
You won’t get the Winter Fuel Payment until your Pension Credit claim is successful.
There are 2 parts to Pension Credit. They’re called:
- Guarantee Credit
- Savings Credit
You might get one or both parts.
Guarantee Credit tops up your weekly income to a minimum amount.
Savings Credit is a small top-up for people who have a modest amount of income or savings. It’s only available if you reached State Pension age before 6 April 2016.
If you think you won’t get much Pension Credit, it could still be worth applying. If you get Pension Credit, you can usually get other benefits like Winter Fuel Payments or a Council Tax Reduction.
If you’ve been told to claim Pension Credit by a certain date
The Department for Work and Pensions are stopping some people’s tax credits and telling them to claim Pension Credit instead.
If you get a letter telling you to claim Pension Credit by a certain deadline, this is a ‘tax credit closure notice’ (TCCN). You should claim Pension Credit by the deadline in the notice. Your tax credits will stop after the deadline.
You might miss out on some money if you apply after the deadline.
Working out if you’re eligible for Guarantee Credit
To claim Pension Credit you must:
- have reached State Pension age – check your State Pension age on https://www.gov.uk/state-pension-age
- not have too much income or savings
- live in the UK
- You can still be working, as long as your income isn’t too high.
Unlike the State Pension, you don’t need a national insurance record.
If you’re not a UK citizen check https://www.citizensadvice.org.uk/benefits/help-if-on-a-low-income/pension-credit/before-you-claim-pension-credit/check-if-you-can-get-pension-credit/
If you’ve lived outside the UK then you’ll need to give evidence to show the UK, Ireland, Channel Islands or Isle of Man is your main home. This is known as being ‘habitually resident’. You have to do this even if you’re a British citizen. Check https://www.citizensadvice.org.uk/benefits/getting-benefits-if-youve-recently-moved-to-the-UK/
If you’re over State Pension age but your partner isn’t:
If you’re already getting Pension Credit, you’ll keep getting it unless your circumstances change.
If your partner isn’t over State Pension age, you can’t usually make a new claim for Pension Credit.
You can still make a new claim for Pension Credit if both of the following apply:
- you reached State Pension age before 15 May 2019
- you’ve been claiming Housing Benefit since before 15 May 2019
Otherwise you’ll usually need to claim Universal Credit instead – check if you’re eligible for Universal Credit.
Working out your income and savings
You should gather everything you can about your weekly income before applying.
Your weekly income could include:
- money from a private pension
- money you get from the State Pension
- most earnings from an employer or from being self-employed – your earnings will be worked out as an average if they go up and down over the year
- benefits such as JSA or ESA
You’ll also need to consider what savings and investments you have. This could include:
- property you own except the home you live in
- shares and other investments
- money held in bank or savings accounts
Any savings or investments over £10,000 will affect the amount of Pension Credit you get. You’ll be treated as having £1 per week of income for every £500 above £10,000.
If your weekly income is below £218.15 then Guarantee Credit will top you up to that amount.
If you’re claiming as a couple and your joint weekly income is below £332.95 it will be topped up to that amount.
If you’re claiming as a couple, you’ll need the same information about your partner’s income.
Your income can be higher than £218.15 or £332.95 if you qualify for extra amounts such as the severe disability or carer’s addition. Your income can also be higher if you’re paying a mortgage.
Check if you can get additional amounts
You might be able to get extra money if you get other benefits or you’re responsible for a child.
If you get other benefits, such as Carer’s Allowance, Disability Living Allowance, Personal Independence Payment or Attendance Allowance, your weekly Guarantee Credit amount can go over the minimum income threshold of £218.15.
If you’re eligible you can receive an extra amount for severe disability of £81.50 a week. Check if you’re eligible for the severe disability addition on GOV.UK. https://www.gov.uk/pension-credit/what-youll-get
The extra amount if you’re a carer is £45.60 a week. You’ll get this if you or your partner either:
- receive Carer’s Allowance or Carer Support Payment
- have claimed for Carer’s Allowance or Carer Support Payment and meet its conditions
You’ll need to have details of any benefits you receive if you use the Pension Credit calculator on GOV.UK. https://www.gov.uk/pension-credit-calculator
If you’re responsible for a child you can get an extra amount for them, as long as you’re not already getting child tax credits. You might also be able to claim child benefit.
If you’re moving from tax credits to Pension Credit
You should get an additional amount so you aren’t worse off to start with – this is called a ‘transitional additional amount’ (TAA).
You should get a TAA automatically, but it’s a good idea to check the letter telling you how much Pension Credit you’ll get.
It should explain how it’s been worked out and what the TAA is. The TAA will be reduced later on, so you’re just getting Pension Credit.
If you find you’re worse off as a result of moving to Pension Credit, you should talk to an adviser.
Check if you can get Savings Credit
Savings Credit is the second part of Pension Credit. It’s only available if you reached State Pension age before 6 April 2016.
The amount you can get depends on whether you meet the ‘savings credit threshold.’ You must have a weekly income of at least £189.80 a week if you’re single or £301.22 a week if you’re claiming as a couple.
The income rules are different to Guarantee Credit.
Don’t count any income you get from:
- working tax credits
- incapacity benefit
- contributory ESA
- contributory JSA
- severe disablement allowance
- maternity allowance
- maintenance payments
The most you can get from Savings Credit is £17.01 a week if you’re single or £19.04 if you’re claiming as a couple.
If you think you can claim Pension Credit
You can check how to apply for Pension Credit.
If you’re not sure you’re eligible you can use the Pension Credit calculator on GOV.UK.
https://www.gov.uk/pension-credit-calculator
You’ll need details of your:
- earnings, benefits and pensions
- savings and investments
- If you have a partner, you’ll need the same details for them.
You can also use other online calculators to check if you’re eligible for Pension Credit or any other benefits. Check what benefits you can get.
https://www.citizensadvice.org.uk/benefits/benefits-introduction/what-benefits-can-i-get/
If you require advice or assistance with Pension Credit you can reach us using the following contact methods:
Fill in our online referral form and we will contact you within 5 working days: https://www.cabb.org.uk/make-a-referral/
Contact our Freephone adviceline on 0808 278 7804, Monday-Friday between 10am and 4pm.
Alternatively you can call, text or WhatsApp the Out of Hours line 0161 850 5053 (7 days per week, 6pm – 9pm).