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Pension Credit

(31 Posts)
Yorkshiregirl Sun 16-Jun-19 16:51:18

Can someone please tell me how pension credit works. I've just done a calculation for my cousin and it appearsshe is eligible to claim approximately £145 a week, but unsure if she will get this amount of Pension Credit as well as her state pension.

EllanVannin Sun 16-Jun-19 17:46:43

You'll have to get in touch with your local DWP .

MamaCaz Sun 16-Jun-19 18:10:02

I presume you mean that you have done an online calculation, which asks about all forms of income, (including state pension) and savings?
If she lives alone and gets a state pension, I am struggling to see how she could be entitled to anywhere near as much as £145 a week, unless that state pension is tiny.

This is what the MSE website says:

Guarantee credit

For single pensioners with a weekly income (including pension) below £167.25, pension credit will top you up to £167.25.

When you apply for guarantee credit, the Government looks at all of your income. This includes both your basic and additional state pension, any income from other pensions, income from any jobs or social security benefits you have, and any savings and investments above £10,000.

FlexibleFriend Sun 16-Jun-19 18:29:21

I'd assume that would be the total amount including state pension.

oldgimmer1 Sun 16-Jun-19 18:52:54

It's supposed to make up your income to the SRP rate of £168.

If she has gaps in her contributions and no other form of income )such as an occupational pension or private pension) then she could be entitled.

She could also be entitled to other underlying entitlements such as free dental care.

Entitled To is the best calculator to use imho.

oldgimmer1 Sun 16-Jun-19 18:56:00

Meant to say Age UK has a good website.

£168 is for s single person, obvs. smile

M0nica Sun 16-Jun-19 19:32:14

I wonder if the £145 is what she is entitled to from the State, made up of pension plus pension credit. The balance of £23 could come from a small personal pension or notional interest from savings.

Remember there is the guarantee part of pension credit as well, so even if your income is just above the £167, you can still get extra money. I think the outside weekly income limit for Guarantee Credit is £190 if you are single and £300 if you are a couple.

The simplest thing is to put in an application. The letter granting PC, or not, will contain all the calculations about how they have reached the decision and how much is due, if appropriate.

If you have a small pension, just apply for PC anyway, the worst they can do is tell you you are not entitled to it and remember, as well as getting free tv licences if you are on Pension Credit you can also get a Council tax Benefit, and if you rent, Housing Benefit as well.

kittylester Sun 16-Jun-19 20:13:35

I would reiterate using AgeUk.

GracesGranMK3 Sun 16-Jun-19 20:46:32

Remember there is the guarantee part of pension credit as well, so even if your income is just above the £167, you can still get extra money. I think the outside weekly income limit for Guarantee Credit is £190 if you are single and £300 if you are a couple.

I wonder where you got these figures from M0nica they don't look right to me. It would be interesting to know as some people may be missing out on some benefits. I believe Pension Credit has one of the worst records for people claiming.

The minimum guarantee for a single person is £167.25 per week and for a couple is £255.25 per week as MamaCaz reported above.

There is also Savings Pension Credit which may top your pension up by up by a maximum amount per week of £13.72 for a single person or £15.35 for a couple. This can be paid to someone who has a small private pension that takes them over the ceiling for the Guarantee Pension Credit or whose saving, when taken into account do.

This is a really good explanation, even though it is aimed at carers, as it includes an example of how a perceived income from savings is calculated.

www.carersuk.org/help-and-advice/financial-support/help-with-benefits/other-pension-age-benefits?gclid=EAIaIQobChMIiIiTsN3u4gIVipztCh1HUwWJEAAYASAAEgKye_D_BwE

If you do get Guarantee Pension Credit you will get some other benefits automatically or it will be taken as a "gateway" benefit when claiming.

If you get Savings Pension Credit you will need to claim the additional benefit and may get the whole or in part. It is worth asking the CAB or AgeUK what you may be able to claim.

GracesGranMK3 Sun 16-Jun-19 20:48:43

you will need to claim the additional benefits not benefit

M0nica Sun 16-Jun-19 22:20:21

GG3 Your right/I am right. I used the wrong words I meant upper limits for savers credit. The £180 and £300 are the rough figures for the upper income where you can still qualify for the savers part of Pension Credit, albeit, probably no more than a £1 a week

GracesGranMK3 Mon 17-Jun-19 10:03:43

Ah - sorry I didn't spot that. I always worry about people getting clear information - although I do wonder what could make them any less clear confused

glammanana Mon 17-Jun-19 10:35:03

All I can add is if you are unsure please just fill in the form and apply for the benefit you may get a nice surprise if you have difficulty ask for help to complete the form with an Age UK advisor they will gladly help .
A couple of years ago a very good friend was unsure if she could apply for certain benefits and I helped her fill in the long and exhausting forms and waited for a while until she received confirmation she was entitled to the benefit it also opened up the fact she was entitled to full housing and council tax rebate it has made a vast difference to her life.

jaylucy Mon 17-Jun-19 10:44:46

I'd certainly recommend using an Age UK advisor to complete the application as they are aware of exactly what to apply for and what information will be needed for all benefits.
There are many pensioners that are entitled to the Pensioners credits that don't apply either through pride or ignorance - maybe this will change when the new ruling for the TV licenses comes in.
Oh, if you use somebody from Age UK, they would be very appreciative of a donation if the application is successful!

looseloafers Mon 17-Jun-19 10:48:14

Go on a site called Entitled To and fill in the form it will tell how much you will get. 😉 good luck

polnan Mon 17-Jun-19 10:54:13

I would suggest she applies.. then "they" will tell her

GracesGranMK3 Mon 17-Jun-19 11:10:28

I think we all worry that "they" don't actually know but where PC is concerned, if you give them the information the do seem to. If you end up with the Saving Credit part instead it is worth checking what else you can get as the extra benefits don't come automatically as the do with the Guaranteed Credit.

JanaNana Mon 17-Jun-19 11:13:36

If you go on the Savvy Woman site (Sarah Pennel) or Martin Lewis it is easier to understand, but personally if I was your cousin I would phone the DWP and ask to make a claim. A few years ago my late in-laws were on pension credits and someone actually came to their home to complete the forms as they were quite long and complicated. I think you can do it over the phone now, but will need all the relevant paperwork in front of you. You are more likely to have the forms posted to you to complete yourselves. Some people on the guaranteed PC get other help too, with dental costs and at the opticians plus council tax rebate in certain cases. Each case is based on individual circumstances so what one may get another may not. Everything is taken into account financially, and this is how it is worked out.

Daisyboots Mon 17-Jun-19 11:54:33

I dont know whether Oension Credit has changed ir not but when I did the claim for my mother about 20 years ago she had an interest only mortgage and she got that paid plus her council tax as part of her pension credit.

sandelf Mon 17-Jun-19 11:59:30

Link to AgeUK factsheet - it's 'the biz' www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs48_pension_credit_fcs.pdf

JohnD Mon 17-Jun-19 13:24:58

Yorkshiregirl - it may be that you have misread the result. I cannot belief that your cousin is only receiving a pension around about £23 per week. It's more like she receives the £145 and would therefore be entitled to some pension credit.

GreenGran78 Mon 17-Jun-19 13:30:01

It's always worth applying, even if you don't think that you are eligible.
My late husband had various medical problems. I didn't class myself as his carer, because he could cope with his physical needs. I needed to be around as much as possible in case he had a fall, though.
Just to stop my friend from nagging me about it I applied for Carer's Allowance, being perfectly honest about the amount of care I actually gave him. I was flabbergasted when my claim was accepted, and the extra money came in very handy.
You have nothing to lose by trying!

Yorkshiregirl Mon 17-Jun-19 13:50:13

Thanks everyone. It is really difficult getting the correct information from her, but she now has another close relative going to see her tomorrow to gather relevant information, and make some calls for her.

Hm999 Mon 17-Jun-19 14:21:50

Pension credits are the least well-used benefit or do I mean has the worst take-up? It's important that anyone who thinks they can claim, does.

missdeke Mon 17-Jun-19 14:27:45

It's worth applying whatever you think you are entitled or not entitled to. Even if you only get a get a £1 or so of savings credit it entitles you to apply for an HC3 certificate which gives you help towards glasses or dental care.