Pension Credit

The DWP have produced a detailed guide to Pension Credit for advisers which you may find useful.

Guarantee Credit (Tax Year 2018/19)

 Single PensionerMarried Couple
Guarantee Credit £163.00 p.w. £248.80 p.w.
Capital Limit £10,000 - Any amount over this limit is converted into income at a rate of £1 for every £500.00 of assets held. £10,000 - Any amount over this limit is converted into income at a rate of £1 for every £500.00 of assets held.

Savings Credit (Tax Year 2018/19)

The Savings Credit part of Pension Credit closed for people reaching State Pension age on or after 6 April 2016.

For people who reached State Pension age before 6 April 2016 they can still get Savings Credit, depending on their circumstances, regardless of when they apply.

 Single PensionerMarried Couple
Savings Credit A credit of 60p for every £1 of income between £140.67 p.w. - £163.00 p.w. A credit of 60p for every £1 of income between £223.82 p.w. - £248.80 p.w
Savings Credit Reduction A reduction of 40p for every £1 of income over £163.00 p.w. applies. A reduction of 40p for every £1 of income over £248.80 p.w. applies.
Capital Limit £10,000 - Any amount over this limit is converted into income at a rate of £1 for every £500.00 of assets held. £10,000 - Any amount over this limit is converted into income at a rate of £1 for every £500.00 of assets held.
Maximum Savings Credit available £13.40 p.w. £14.99 p.w.

 

Guarantee Credit (Tax Year 2017/18)

 Single PensionerMarried Couple
Guarantee Credit £159.35 p.w. £243.25 p.w.
Capital Limit £10,000 - Any amount over this limit is converted into income at a rate of £1 for every £500.00 of assets held. £10,000 - Any amount over this limit is converted into income at a rate of £1 for every £500.00 of assets held.

Savings Credit (Tax Year 2017/18)

The Savings Credit part of Pension Credit closed for people reaching State Pension age on or after 6 April 2016.

For people who reached State Pension age before 6 April 2016 they can still get Savings Credit, depending on their circumstances, regardless of when they apply.

 Single PensionerMarried Couple
Savings Credit A credit of 60p for every £1 of income between £137.35 p.w. - £159.35 p.w. A credit of 60p for every £1 of income between £218.42 p.w. - £243.25 p.w
Savings Credit Reduction A reduction of 40p for every £1 of income over £159.35 p.w. applies. A reduction of 40p for every £1 of income over £243.25 p.w. applies.
Capital Limit £10,000 - Any amount over this limit is converted into income at a rate of £1 for every £500.00 of assets held. £10,000 - Any amount over this limit is converted into income at a rate of £1 for every £500.00 of assets held.
Maximum Savings Credit available £13.20 p.w. £14.90 p.w.

 

Guarantee Credit (Tax Year 2016/17)

 Single PensionerMarried Couple
Guarantee Credit £155.60 p.w. £237.55 p.w.
Capital Limit £10,000 - Any amount over this limit is converted into income at a rate of £1 for every £500.00 of assets held. £10,000 - Any amount over this limit is converted into income at a rate of £1 for every £500.00 of assets held.

Savings Credit (Tax Year 2016/17)

The Savings Credit part of Pension Credit will close for people reaching State Pension age on or after 6 April 2016.

For people who reached State Pension age before 6 April 2016 they can still get Savings Credit, depending on their circumstances, regardless of when they apply.

 Single PensionerMarried Couple
Savings Credit A credit of 60p for every £1 of income between £133.82 p.w. - £155.60 p.w. A credit of 60p for every £1 of income between £212.97 p.w. - £237.55 p.w
Savings Credit Reduction A reduction of 40p for every £1 of income over £155.60 p.w. applies. A reduction of 40p for every £1 of income over £237.55 p.w. applies.
Capital Limit £10,000 - Any amount over this limit is converted into income at a rate of £1 for every £500.00 of assets held. £10,000 - Any amount over this limit is converted into income at a rate of £1 for every £500.00 of assets held.
Maximum Savings Credit available £13.07 p.w. £14.75 p.w.

 

Guarantee Credit (Tax Year 2015/16)

 Single PensionerMarried Couple
Guarantee Credit £151.20 p.w. £230.85 p.w.
Capital Limit £10,000 - Any amount over this limit is converted into income at a rate of £1 for every £500.00 of assets held. £10,000 - Any amount over this limit is converted into income at a rate of £1 for every £500.00 of assets held.

Savings Credit (Tax Year 2015/16)

 Single PensionerMarried Couple
Savings Credit A credit of 60p for every £1 of income between £126.50 p.w. - £151.20 p.w. A credit of 60p for every £1 of income between £201.80 p.w. - £230.85 p.w
Savings Credit Reduction A reduction of 40p for every £1 of income over £151.20 p.w. applies. A reduction of 40p for every £1 of income over £230.85 p.w. applies.
Capital Limit £10,000 - Any amount over this limit is converted into income at a rate of £1 for every £500.00 of assets held. £10,000 - Any amount over this limit is converted into income at a rate of £1 for every £500.00 of assets held.
Maximum Savings Credit available £14.82 p.w. £17.43 p.w.

 

Notes:

  1. The pension credit is made up of two elements the guarantee credit (payable from age 60) and the savings credit (payable from age 65).
  2. The amount of pension credit is reduced where income exceeds the guarantee credit levels for a single person or a married couple.
  3. Assets including your home, most personal possessions, pre-paid funeral plans and the surrender value of any life insurance policies are ignored in calculating entitlement to the pension credit.
  4. Limits differ for those pensioners who are carers, severely disabled or have certain eligible housing and council tax costs.

* For those who don't qualify for SSP ** Payable after 52 weeks to those under age 45 on the day of incapacity.

Last updated: 14 Feb 2018

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