SIGNpost : Pension Credit

This item is an extract of a SIGNpost article that originally appeared in the Associate Magazine, but is updated with current data, links,  addresses and other contact details.

The Pension Credit is a new social security benefit that was introduced from October 2003 and which aims to provide people aged 60 and over with a minimum level of income.

Whilst for most P&G retirees it will not have any impact, for a few there may be a financial benefit - the Government estimated that around one million extra older people would apply.

The Pension Credit will have two parts: the "guarantee credit" and the "savings credit".

The guarantee credit is basically the same as the current "income support" for people aged 60 and over and will generally be paid at the same rates.

The savings credit will provide extra money to certain people aged 65 and over. You are likely to be entitled to the savings credit if, as a single person, your income is less than around £144 a week or, as a couple, less than £212 a week (October 2004 figures from PC1L Pension Service leaflet).

However, some disabled people, carers and homeowners with housing costs may be entitled to savings credit if their income is higher than these levels.

Claiming Pension Credit

If you are already getting income support you will not need to make a claim; if not, you can obtain more information from The Pension Service (look in the phone book under social security or pension service), via the website www.thepensionservice.gov.uk or contact SIGNpost.