State pensioners who are on a “higher income” can get an average of an extra £3,900 a year through Pension Credit. Pension Credit is a means-tested benefit which means, under Department for Work and Pensions ( DWP ) rules, that your eligibility is based on your income and capital
Pension Credit is only available to those with a weekly income of £218 or less, according to the government’s own figures, or £332 a week if you’re in a couple. You might be eligible for Guarantee Credit if you’ve reached State Pension age. This is currently 66 for both men and women.
If you’ve reached State Pension age, you can claim Guarantee Credit if your weekly income is less than £218.15 if you’re single or £332.95 if you’re a couple. But even if your weekly income is higher than these thresholds, you could still claim Guarantee Credit if you meet one of the following criteria.
READ MORE UK faces ‘six inches’ of snow with England hit on ‘five more dates’ in January
The eligibility extends to if you’re a carer, if you have a severe disability, if you have certain housing costs, such as service charges or if you’re responsible for a child or young person who usually lives with you. If you reached State Pension age before 6 April 2016 – or if you’re a couple and both of you did – you might be eligible to claim Savings Credit.
There isn’t a savings limit for Pension Credit. However, if you have over £10,000 in savings, this will affect how much you receive. If you’re a mixed age couple (meaning only one of you is over State Pension age), you normally have to claim Universal Credit until you’ve both reached State Pension age. Then you might be eligible to claim Pension Credit as a couple.
Sarah Pennells, consumer finance specialist at Royal London, said: “If you care for someone, you may be entitled to £45.60 a week as an extra amount. It’s called the Carer Addition. If you have a disability, there’s the Severe Disability Addition that you may be entitled to, which is worth £81.50 a week. If you’re responsible for a child or young person under the age of 20, you could get an extra £66.29 a week.
“If you receive benefits as part of your income, some benefits, such as Attendance Allowance or Personal Independence Payment, aren’t taken into account when your income is being assessed.”