The pension credit will increase to a maximum of £ 279 per week next year

PENSION credit is expected to increase next year, up to a maximum standard payment of £ 278.70 per week for couples.

Anyone receiving additional items paid on top of their standard allowance will also see these rates increase by 3.1% from April 2022.

1

Anyone who gets a pension credit or any of the additional items will see their payments increase from next year

This is one of the many benefits that will increase next year, including universal credit, maternity allowance, and even state pension.

The pension credit is designed to help low-income retirees by giving them extra money to help cover their living expenses.

The amount you receive depends on your particular situation, including if you have a partner, if you are disabled, and if you have parental responsibilities for young children.

The maximum basic allowance is currently £ 177.10 for singles and £ 270.30 for couples. From next April this will drop to £ 182.60 and £ 278.70 respectively.

This means that if your pension income is less than these amounts, the government will pay you the difference in the top-ups.

The increase is £ 5.50 per week for singles and £ 8.40 per week for couples – over a year, which works out to £ 286 or £ 436.80.

How much will the additional pension credit items increase?

If you have a severe disability, you can get up to £ 67.30 per week on top of your standard allowance. From April next year that amount will rise to £ 69.40, an increase of just £ 2.10 per week.

If you are in a relationship and both are severely disabled, the top-up drops from £ 134.60 to £ 138.80.

Caregivers can also get a top-up worth £ 37.70 per week currently and will rise to £ 38.85 next year, just £ 1.15 more per week.

If you have family responsibilities towards young children, you also get extra help.

For a first child born before April 6, 2017, the rate is £ 65.10, rising to £ 66.85. For subsequent children or those born after that date, the rate is lower than £ 54.60, rising to £ 56.35 next year.

If your child has a disability, you can get a lower rate of £ 29.66 or a higher rate of £ 92.54 depending on the severity of the condition. From April these rates drop to £ 30.58 and £ 95.48.

How much will the savings loan increase?

There is a second element of pension credit, called savings credit, available to people who have reached retirement age before April 2016.

This is a little extra money to reward people who have saved for retirement.

The maximum you can get is £ 14.04 per week if you are single and £ 15.71 per week if you are in a relationship. But those numbers also rise next year to £ 14.48 and £ 16.20.

For every pound of income you have above the savings threshold, your savings loan is reduced by 40 pence.

The threshold is £ 153.70 for singles and £ 244.12 for couples, but from next year it will drop to £ 158.47 and £ 251.70 respectively.

You do not need to have a guaranteed pension credit to qualify for the savings credit.

How to apply for a pension credit

According to official government figures, nearly a million eligible people do not have a pension credit worth an average of £ 938.63.

To be eligible, you (or your partner if you live with one) must have reached the statutory retirement age.

You must also live in England, Scotland or Wales

Your household income will be calculated when you apply and if you do not meet the thresholds, you will receive an additional amount.

Your income includes:

  • State pension
  • other retreats
  • earnings from employment and self-employment
  • most social security benefits, for example child care allowance

If you have £ 10,000 or less in savings and investment, it will not affect your pension credit.

If you have over £ 10,000, every £ 500 over £ 10,000 counts as £ 1 of weekly income.

You can start your application up to four months before reaching retirement age.

You can apply any time after reaching retirement age, but your application can only be backdated by three months.

You can use the online service if:

  • you have already applied for your state pension
  • there are no children or young people included in your request

You can apply online using the government service.

You can also make a request by phone on the pension credit request line on 0800 99 1234.

To apply by mail, print and complete the pension credit application form or call the application line to request it.

The pension credit entitles you to many more benefits including rent assistance, municipal tax reductions, and even free TV licenses, so it’s worth claiming – even if you only get a few pennies. .

Pensions to rise according to inflation rate next year as triple lockdown is broken, DWP boss confirms

We pay for your stories!

Do you have a story for The Sun Money team?