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Pension Credit

Pension Credit is a benefit for people over State Pension age on lower incomes.

It has two parts:

  • Guarantee Credit
  • Savings Credit

Only people who reached State Pension age before 6 April 2016 qualify to claim the Savings Credit part of Pension Credit.

If you reach State Pension age on or after 6 April 2016, you can still get the Guarantee Credit part of Pension Credit.

From 15 May 2019 when a couple are claiming married couples pension credit both of them have to be over State Pension age.  Any couple who were in receipt of pension credit before this date keep their entitlement.

Guarantee Credit (tax year 2024/25)

  Single pensioner Married couple
Guarantee Credit  £218.15 a week. £332.95 a week.
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 2024/25)

 

  Single pensioner Married couple
Savings Credit A credit of 60p for every £1 of income between £189.90 a week - £218.15 a week. A credit of 60p for every £1 of income between £301.22 a week - £332.95 a week.
Savings Credit reduction A reduction of 40p for every £1 of income over £218.15 a week applies. A reduction of 40p for every £1 of income over £332.95 a week 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 £17.01 a week. £19.04 a week.

 

Guarantee Credit (tax year 2023/24)

  Single Pensioner Married Couple
Guarantee Credit  £201.05 a week. £306.85 a week.
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.

From 15 May 2019 when a couple are claiming married couples pension credit both of them have to be over State Pension age.  Any couple who were in receipt of pension credit before this date keep their entitlement.

Savings Credit (tax year 2023/24)

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 pensioner Married couple
Savings Credit A credit of 60p for every £1 of income between £174.49 a week - £201.05 a week. A credit of 60p for every £1 of income between £277.12 a week - £306.85 a week.
Savings Credit reduction A reduction of 40p for every £1 of income over £201.05 a week applies. A reduction of 40p for every £1 of income over £306.85 a week 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 £15.94 a week. £17.84 a week.

 

Guarantee Credit (tax year 2022/23)

  Single pensioner Married couple
Guarantee Credit  £182.60 a week. £278.70 a week.
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.

From 15 May 2019 when a couple are claiming married couples pension credit both of them have to be over State Pension age.  Any couple who were in receipt of pension credit before this date keep their entitlement.

Savings credit (tax year 2022/23)

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 pensioner Married couple
Savings Credit A credit of 60p for every £1 of income between £158.47 a week - £182.60 a week. A credit of 60p for every £1 of income between £251.70 a week - £278.70 a week.
Savings Credit reduction A reduction of 40p for every £1 of income over £182.60 a week applies. A reduction of 40p for every £1 of income over £278.70 a week 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 £14.48 a week. £16.20 a week.

Guarantee Credit (tax year 2021/22)

  Single pensioner Married couple
Guarantee Credit £177.10 a week. £270.30 a week.
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.

From 15 May 2019 when a couple are claiming married couples pension credit both of them have to be over State Pension age.  Any couple who were in receipt of pension credit before this date keep their entitlement.

Savings Credit (tax year 2021/22)

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 Pensioner Married Couple
Savings Credit A credit of 60p for every £1 of income between £153.70 a week - £177.10 a week. A credit of 60p for every £1 of income between £244.12 a week - £270.30 a week.
Savings Credit reduction A reduction of 40p for every £1 of income over £177.10 a week applies. A reduction of 40p for every £1 of income over £270.30 a week 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. A reduction of 40p for every £1 of income over £270.30 a week applies.
Maximum Savings Credit available £14.04 a week. £15.71 a week.

Guarantee Credit (tax year 2020/21)

  Single pensioner Married couple
Guarantee Credit £173.75 a week. £265.20 a week.
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.

From 15 May 2019 when a couple are claiming married couples pension credit both of them have to be over State Pension age.  Any couple who were in receipt of pension credit before this date keep their entitlement.

Savings Credit (tax year 2020/21)

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 pensioner Married couple
Savings Credit A credit of 60p for every £1 of income between £150.47 a week - £173.75 a week. A credit of 60p for every £1 of income between £239.17 a week - £265.20 a week.
Savings Credit reduction A reduction of 40p for every £1 of income over £173.75 a week applies. A reduction of 40p for every £1 of income over £173.75 a week 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 £13.97 a week. £15.62 a week.

Guarantee Credit (tax year 2019/20)

  Single pensioner Married couple
Guarantee Credit £167.25 a week. £255.25 a week
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.

From 15 May 2019 when a couple are claiming married couples pension credit both of them have to be over State Pension age.  Any couple who were in receipt of pension credit before this date keep their entitlement.

Savings Credit (tax year 2019/20)

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 pensioner Married couple
Savings Credit A credit of 60p for every £1 of income between £144.38 a week - £167.25 a week. A credit of 60p for every £1 of income between £229.67 a week - £255.25 a week.
Savings Credit reduction A reduction of 40p for every £1 of income over £167.25 a week applies. A reduction of 40p for every £1 of income over £255.25 a week 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 £13.73 a week. £15.35 a week.

Guarantee Credit (tax year 2018/19)

  Single pensioner Married couple
Guarantee Credit £163.00 a week. £248.80 a week.
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 pensioner Married couple
Savings Credit A credit of 60p for every £1 of income between £140.67 a week - £163.00 a week. A credit of 60p for every £1 of income between £223.82 a week - £248.80 a week.
Savings Credit reduction  A reduction of 40p for every £1 of income over £163.00 a week applies. A credit of 60p for every £1 of income between £223.82 a week - £248.80 a week.
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 a week. £14.99 a week.

Notes:

  • The pension credit is made up of two elements the guarantee credit (payable from age 60) and the savings credit (payable from age 65).
  • The amount of pension credit is reduced where income exceeds the guarantee credit levels for a single person or a married couple.
  • 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.
  • 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.