Pension Credit: Eligibility Criteria Explained – Are you one of the 770,000 Brits who don’t claim it | Personal finance | Finance

The pension credit is separate from the state pension, which is automatically paid to Britons once they reach statutory retirement age. The extra cash helps cover living costs and has become increasingly important in recent months as energy bills and inflation continue to soar. Are you entitled to pension credit? Here’s everything you need to know about the state benefit.

What is the pension credit?

The pension credit was introduced to help supplement the income of people who are over the statutory retirement age.

It is a means-tested benefit that is divided into two parts, some people may claim both.

The first part is known as ‘Guarantee Credit’, which is the main segment of Pension Credit, allowing you to supplement your weekly income up to a guaranteed minimum level.

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In 2022/23 the minimum standard benefit level is £182.60 if you are single and £278.70 if you are in a relationship.

Some people can also apply for a “savings credit” if they reached the legal retirement age before April 2016.

You must also have provided for your retirement through savings, work or a private pension.

If you are single, the savings credit will add an additional £14.48 per week and £16.20 if you are in a relationship.

If you are in a relationship, you will need to include this in your application. To apply, you will either need to both be of legal retirement age or one of you will need to receive housing benefit.

The government classifies a partner as your husband, wife, or civil partner – if you live with them – or someone you live with as a couple, without being married or in a civil partnership.

Earlier this week it was revealed that around 770,000 Britons would not have applied for pension credit despite being eligible.

The Department for Work and Pensions (DWP) announced the statistics in response to a question from Conservative MP Sir John Hayes.

He asked the DWP to confirm “the number [of] pensioners in the UK who qualify for a pension credit but do not claim their rights”.

Guy Opperman – Tory MP for Hexham – answered the question and pointed out that on June 15 there will be a Pension Credit ‘awareness day’

The occasion will see “broadcasters, newspapers and other partners encouraged to reach out to retirees to promote pension credit through their channels”.

He said: “We will also expand the campaign to include advertising in regional and national newspapers. This event was a success in 2021.

“We know that one of the best ways to reach eligible customers is through trusted actors working in the community.

“We will produce and distribute leaflets and posters that can be used in local communities, and we will also update our digital toolkit with information and resources that any stakeholder can use to help promote pension credit. .