Pension credit is a means tested benefit for people who are aged 60 and over. It consists of two components, the guarantee credit and the savings credit.
- The guarantee credit is available to people who are 60 years or older, as long as their income is below a specific amount specified by the government and they are resident in the UK.
- The savings credit is available to people who are 65 years and older and may be paid on top of an existing income as long as it does not exceed an upper limit again set by the government. As with the guarantee credit, claimants of the savings credit also have to be resident in the UK.
From 6 April 2010, the state pension age for women will begin to increase from the current age of 60. The age from which people will be eligible for Pension Credit will rise in line with the increase in the state pension age.
The detailed rules of entitlement to Pension Credit are complex. The Direct Gov web site offers access to a pension credit calculator tool that can determine entitlement on-line. There are also guidance charts that illustrate how the credit works.
Applications for pension credit
Application forms can be filled in on the same site or downloaded and sent to the appropriate pension centre; the addresses are again available on line. In England, Wales and Scotland, a client can claim pension credit by contacting the Pension Service by telephone on 0800 99 1234 (Mon-Fri 8.00am-6.00pm;), or textphone on 0800 169 0133.
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