08.08.16

The previous articles written by Jayne Knights, Benefits Expert, have been so well received we just had to have her back to discuss pension credit and additional benefits for older people. Over to Jayne…

The political rollercoaster of the past few months has affected everything in the benefits world, and the recent appointment of Damian Green as the third Department for Work and Pensions (DWP) Secretary of State this year has resulted in yet another announcement of a delay in the rollout of the benefit, Universal Credit.

David Cameron’s Government, however, put in place promises to protect the income of older people, which to a large extent have provided a shield from most of the negative aspects of welfare reform.  In April we also saw the introduction of the ‘new state pension’. Only a small number of people are currently eligible for the full amount of this new state pension, currently set at £155.65 a week. Most pensioners will receive an average state pension of around £110 – £120 a week, which is less than they need to live on. Some older people have no access to a state pension at all.

This is where a really important benefit called PENSION CREDIT could help you. Pension Credit is divided into two parts: Guarantee Credit and Savings Credit.

Guarantee Credit

It’s important to know that once you have reached the end of ‘working age’ and become ‘pension age’, you are eligible to claim pension guarantee credit if your income is less than the law states that you need to live on each week.   This is known as your ‘appropriate amount’ and for a single person it’s a minimum of £155.60 a week, and for a couple it’s a minimum of £237.55 a week. This is more than TWICE the amount that you are said to need to live on if you are considered ‘working age’.

At the moment, access to pension guarantee credit, i.e. the end of ‘working age’ benefits, is at 63 plus several months, whether you are male or female, and is determined by your date of birth. Pension credit age will rise gradually as we slowly get to 2018, which is the year when state pension ages are equalised between men and women.

You can easily check your pension and pension credit age on this part of the DWP website: httpss://www.gov.uk/state-pension-age

These ‘appropriate amounts’ are the minimum you need to live on – and these amounts can sometimes be increased if you have special circumstances, such as being a carer, or living on your own while getting Attendance Allowance, DLA care or PIP for daily living.

Savings Credit

This part of pension credit has now been abolished for new claims, but is still being paid to millions of pensioners over 65 who had made a modest provision for their retirement. The maximum savings credit that is paid is £13.07 for a single person and £14.75 for a couple.

Check for yourself

You can use the benefit checker on the Turn2Us website to complete a pension credit calculation check.

Alternatively, you can speak to a real DWP human! The Pension Service is one of the best-performing arms of the DWP, and the people on the helpline are great. They will work out your entitlement, and even take claims over the phone which they send to you to sign, including kickstarting claims for housing benefit and help with council tax. You don’t need to go anywhere near a Jobcentre – it can usually all be done by phone and post.

httpss://www.gov.uk/pension-credit
Helpline: 0800 731 7898

Did you know..?

About 4 out of 10 people who could receive pension credit don’t claim it! Make sure you claim if you can – it’s your legal entitlement.

In Part 2 I’ll be talking about getting help with your housing costs and council tax.

Thank you to Jayne Knights for an extremely informative and helpful blog. Jayne can be contacted via her website, please click here.