this is how it worked:
*The extra personal allowance is means-tested. For over 65s, the extra allowance applies up to a total income of £24,000 in 2011-12 (£25,400 in 2012-13). Above that level, it reduces by £1 for every £2 above the limit until it reaches parity with the under 65s.
Currently some five million people qualify for the extra allowance out of 12million pensioners.*
I know these are old figures but it was a help to those of us not well-heeled and in receipt of large pensions. It is all very well saying increase Pension Credit to aid poorer pensioners JaneA but pension credit couples already get 225 pound per week, full council tax and housing benefit whereas those of us who have a small private pension have to PAY for most things.
not whinging honestly but the extra personal allowance was to help with the extra cost of being old (over 65) and did save us a bit of tax on our very meagre income.