Pension credit changes: what’s the new change – and how could it cost you £ 7,000 A YEAR? | Personal Finances | Finance

The pension credit was introduced in 2003 to financially help Britons reach retirement age. The plan is income-linked and helps low-income people with additional payments. But many don’t realize how much they’re entitled to, and with the upcoming changes to pension credit, you might be missing out.

What is the new change to the pension credit?

On May 15, 2019, the changes regarding who are eligible for the pension credit will come into effect.

The pension credit is an income-related benefit made up of two parts – the guarantee credit and the savings credit – and will continue to be so after the changes are made.

However, new rules state that if you are in a relationship, you will only be able to start getting pension credit if you and your partner have both reached the pension credit eligibility age.

READ MORE: Pension credit: 1.3 million people miss out on hundreds of books

The state retirement age is now the same for men and women and is gradually increasing to reach 66 by October 2020.

The change will also affect you if either of you have reached the pension credit eligibility age and are claiming housing allowance (for you as a couple).

If you are single from May 15, 2019, you will stop receiving the pension credit if you start living with a partner who has not reached the age of eligibility for the pension credit.

The credit can only be given again when your partner reaches the required age.

The new rules coming in May could cost around £ 7,000 a year and they will change which couples can get pension credit, so act now if you qualify.

In fact, from May 15, the two partners of a couple will in most cases have to have reached the legal retirement age to apply for a pension credit.

Until May 14, you can apply as a couple if only one of you has reached the legal retirement age.

If you are concerned that the changes will affect you, call the pension credit application line on 0800 99 1234 (text phone: 0800 169 0133).

To obtain information on the amount to which you are entitled, you must have the following information:

  • national insurance number
  • bank account details
  • Information on your income, savings and investments
  • Information about your pension (if you have one)
  • Details of all housing costs (such as mortgage, interest payments, service charges)
  • Partner contact details (if you have a partner)