Pension Credit: How much is Pension Credit?
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Pension Credit is an income-related benefit which gives retirees some increased security in later life. They will come in handy at the moment, as the country eyes an incoming recession due to COVID-19. But the amount they get hinges on how much weekly income they receive.
How much is Pension Credit?
People can claim Pension Credit in two parts, Guarantee Credit and Savings Credit.
Guarantee Credit works by topping up someone’s income to a guaranteed minimum.
Savings Credit gives people additional money if they have savings, or if their income is higher than the basic State Pension.
Under Guarantee Credit, people could earn the following:
- £173.75 if they’re single
- £265.20 if they’re in a couple
Savings Credit will give people either one of the following payments per week:
- £13.97 if they’re single
- £15.62 if they’re in a couple
To qualify for Pension Credit, potential claimants must meet the following criteria:
- Live in the UK – England, Scotland, Wales or Northern Ireland
- Have reached state pension age
- For couples, both partners will need to have reached state pension age
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Pension Credit extends beyond the monetary amount people receive from the benefit.
Anyone claiming it may not have to pay Council Tax unless they live with others, and free dental treatment on the NHS.
The benefit also paves the way for Cold Weather payments, which come in when the weather drops below 0C.
Those payments will net claimants an extra £25 when the temperature remains at this level for seven days in a row.
Renters could claim a Housing Benefit which takes care of the bill for them.
Anyone lucky enough to own a home will get help with mortgage interest, ground rent and service charges.
Carers can also claim Carer Premium or Carer Addition worth £36.85 per week.
And finally, over-75s can avoid paying the BBC license fee with Pension Credit.
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