With concerns around cost of living still very high, we would like to continue to share our tips relating to financial support. This month we are sharing a reminder to those who qualify to apply for Pension Credit.
Pension Credit is a means-tested benefit for people who have reached state pension age. It is administered by the Pension Service, part of the Department for Work and Pensions.
Why you should apply for Pension Credit
It is estimated that up to 880,000 households across the UK are missing out on Pension Credit, and it is worth on average £3,900 per year. Applications can also be the starting point which leads to additional benefits such as the winter fuel payment, cold weather payment, and help with Council Tax and Housing Benefit. Applying for pension credit can’t reduce your current entitlements.
Who is eligible to apply for Pension Credit
Factors that decide who receives pension credit and how much they receive are complex but the primary factors are age and financial circumstances. You must be of state pension age to qualify, which is currently 66, though it is set to increase further over the next decade.
The Garentee Credit is the part of Pension Credit that guarantees you a minimum level of income. Should you qualify, the standard minimum you are guaranteed is: £218.15 a week if you are single or £332.95 if you have a partner. To qualify, you must be at the qualifying age and your weekly income, including income from savings, must be less than the guaranteed amount. However the guaranteed minimum may be higher if you qualify for severe disability, are a carer, or have certain housing costs. The additional amounts for severe disability often apply to blind and partially sighted people which guarantees an additional £81.50 a week, or £163.00 a week if both members of a couple qualify.
The Savings Credit is the part of Pension Credit designed to reward people who have saved some money for their retirement. Following a change to the law in 2016, it is being phased out and is only available to existing recipients, and to people who reached state pension age on or before 6 April 2016. If you are eligible to claim the Savings Credit you can only qualify for it if you have pensions or other income (including income from savings) above the Savings Credit threshold which is £189.80 a week if you are single or £301.22 a week if you are a couple.
Additional Information
The most up to date information can be found on www.gov.uk/pension-credit. Applications can be made online or you can request a form by calling 0800 99 1234 between 8am to 6pm Monday to Friday. You will need to provide your National Insurance number, information about your pensions and other income and details of your capital, savings and investments.
If you would like help understanding your entitlements or completing any essential paperwork the Vision Norfolk’s Community Outreach Team can provide assistance over the phone or at home for anyone living with sight loss in Norfolk. Please call 01603 573000 to find out more.
