What Is Pension Credit and How Does It Work?
Pension Credit is a means-tested benefit that helps people of State Pension age with a low income. In England, Scotland and Wales, it provides extra money for living costs and is separate from the State Pension. Northern Ireland has its own guidance and application arrangements. The main part, called Guarantee Credit, tops up a person’s assessed weekly income. The calculation considers pensions, earnings and certain other benefits; couples’ incomes are assessed together. Owning a home does not automatically rule someone out. Savings of £10,000 or less do not affect the calculation, while larger savings can count as additional income. The amount can increase for particular circumstances, including caring responsibilities, severe disability or some housing costs. Pension Credit can also open access to other support, such as Council Tax Reduction and, for eligible people aged 75 or over, a free TV licence. The official calculator helps estimate entitlement, which depends on each applic...