What is pension credit?

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What is pension credit?

Pension Credit is an income-related benefit made up of 2 parts – Guarantee Credit and Savings Credit.

Guarantee Credit tops up your weekly income if it’s below £173.75 (for single people) or £265.20 (for couples). You may still be eligible if you have savings, a pension or your own home.

Savings Credit is an extra payment for people who saved some money towards their retirement, for example a pension.

You may not be eligible for Savings Credit if you reached State Pension age on or after 6 April 2016. You do not pay tax on Pension Credit.

What you’ll get:

 Guarantee Credit per weekSavings Credit per week
Single peopleTop up to £173.75Up to £13.97
CouplesTop up to £265.20Up to £15.62

You might get more if you’re a carer, severely disabled, responsible for a child or young person, or have certain housing costs.

Use the dedicated calculator on the GOV.UK website to work out how much you might get.

If you get Guarantee Credit you’ll also qualify for other benefits such as Housing Benefit, Council Tax Reduction, Cold Weather Payments and help with the costs of NHS services.

If you have any questions please get in touch with us. We have a dedicated payroll team who can help, speak to your usual Farnell Clarke contact or email info@farnellclarke.co.uk.

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