Pension credit claimants will see their income increase this month as new higher rates are granted by government officials. This means that those claiming the benefit can expect a 3.1% increase.
With the cost of living proving difficult for some households as fuel costs soar, electricity and gas prices rise and the cost of food and drink rises, any increase in this that people can get from their benefit application will be helpful. But what exactly is pension credit, who gets it, what are the new rates and when do they start being granted? Here’s what we know.
What is the pension credit and who benefits from it?
The pension credit is intended for people who are over retirement age and have a low income. It helps them out. It’s separate from the state pension, but any income, whether it’s from a pension pot or some other benefit, would count if you go ahead and claim it.
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Retirees eligible for the “savings credit” part of the pension credit will receive even more money. To get it, however, you must be over the legal retirement age and have some money saved for your retirement.
What are the pension credit payment rates?
Those who are single in a household and claim pension credit can expect their weekly payment to rise from £177.10 to £182.60. If you are a couple, your seven-day rate will drop from £270.30 to £278.70.
If you qualify for the above-mentioned ‘savings credit’ element of the pension credit, you will qualify for a weekly rate of £14.48 for a single person, instead of £14.04, and £16.20 £, instead of £15.71 if you are in a relationship. These new payment amounts come into effect from April 6.
If the new Pension Credit payment rates aren’t enough for you, you can see if you’re eligible for a range of other help. You can get housing allowance, free pass, council tax reduction, free TV license, help with dental costs and help with heating, through programs such as winter fuel allowance.