Pension Credit is a benefit for people age 60 or over who have a relatively low income. You may get it even if you have some savings and modest retirement income. It can be paid on top of your state retirement pension.
Am I entitled to Pension Credit?
You are likely to be entitled to guarantee Pension Credit if your weekly income (including income from savings) is less than:
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£132.80 if you are single
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or £202.40 if you have a partner.
If you are age 65 or over you are likely to be entitled to Pension Credit if your weekly income is less than:
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£181.00 if you are single
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or £266.00 if you have a partner.
However you could still qualify for Pension Credit if your weekly income is over the above amounts. This may be possible if you qualify for an additional amount for severe disability or for being a carer; or if you have eligible housing costs such as mortgage interest. The additional amounts often apply to blind and partially sighted people.
How do I apply?
You can phone the The Pension Service on 0800 99 1234. The telephone line is open from 8am to 8pm Monday to Friday, and 9am to 1pm on Saturday. If you have speech or hearing difficulties, the textphone number is 0800 169 0133.
You can also apply for help with your rent and council tax at the same time as applying for Pension Credit. You will have to complete just a three-page claim form, HCTB1 (PCA).
Pension Service staff can fill in an application form for you over the phone if you wish. They will then post the completed form to you so that you can check it and sign it.
You will need to provide:
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your National Insurance (NI) number
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information about your income
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details of your savings and investments (but only savings over £10,000 will affect the calculation for your Pension Credit).
Pension Credit can be backdated for up to three months as long as you qualified during that period.
What does Pension Credit include?
The guarantee Pension Credit is for people aged 60 or over. It ensures that you are guaranteed an income of at least £132.80 a week if you are single, or £202.40 a week if you have a partner.
The savings Pension Credit is for people aged 65 or over who have modest savings and capital or retirement income. It does not matter if you have a partner who is under 60. This credit provides extra money of up to £20.52 if you are single, or £27.09 a week if you have a partner.
To be able to get the savings Pension Credit you must have qualifying income above the 'savings credit threshold' of £98.40 if you are single, or £157.25 if you are a couple.
Additional amounts for severe disability and for carers
The amount for severe disability, worth £53.65, is included in your Pension Credit calculation if:
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you and / or your partner get either rate of Attendance Allowance, or the middle or higher rate of Disability Living Allowance (DLA) care component
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and no one gets Carer's Allowance for looking after you
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and you either live alone or the person you live with is registered blind or gets Attendance Allowance / DLA middle or higher rate care component.
You and your partner can also get an extra amount for being a carer, either if you get Carer's Allowance, or you could get it but aren't paid it because of your state pension. It is worth £30.05 a week.
The calculation for Pension Credit, especially the savings credit, is complicated. Please contact the RNIB Helpline (0303 123 9999 or helpline@rnib.org.uk) if you want to check if you are entitled to the Pension Credit, and for advice about how you may qualify for the additional amounts.
Your income
Only certain types of income are counted when working out your Pension Credit. These include the state pension, an occupational pension or a personal pension and certain benefits. Trust fund income is normally taken into account but should be ignored if the trust fund was set up with money received for a personal injury.
Attendance Allowance and DLA are ignored as income but these may lead to entitlement to or a greater amount of Pension Credit.
Your savings
The first £10,000 of your individual or joint savings and capital is ignored in the calculation for Pension Credit. There is no upper savings limit. This also applies if you live permanently in a care home.
The Pensions Service count £1 a week as income for every £500 or part of £500 over £10,000 you have in savings. They do not need to know about any interest or dividends you receive from savings.
The property that you normally live in is ignored but the value of any other property and land is usually counted. Other capital that is counted includes savings and ISA's, shares or unit trusts, premium bonds, and income or capital bonds. Certain capital items may not count such as lump-sum payments because of a personal injury. Arrears of certain state benefits may be ignored for a period.
Pension Credit, Housing Benefit and Council Tax Benefit
If you are entitled to guarantee Pension Credit you will also qualify for Housing Benefit (HB) or Council Tax Benefit (CTB) regardless of the level of your savings. If you receive savings credit only, you will have to make a separate application for HB or CTB.
HB and CTB can currently be backdated for up to three months, as long as you qualified during that period.
Further information
For more information contact:
RNIB Helpline
105 Judd Street
London
WC1H 9NE
Telephone: 0303 123 9999
Email: helpline@rnib.org.uk
You can also download our factsheet:
Please note that we can only give advice about benefits for people with sight loss and their carers or dependants.
This information gives general guidance only and is not an authoritative statement of the law.