Glasgow, Scotland – September 03, 2024: If you’re over the age of 66 and concerned about your income, you may be eligible for Pension Credit, even if you own your home and have savings. Pension Credit is a means-tested benefit that provides extra support to people with a low income. However, many people who could benefit from it miss out, often due to misunderstandings about eligibility.
Here’s a breakdown of what you need to know:
Can You Claim Pension Credit If You Own Your Home?
Yes, owning your home does not automatically disqualify you from receiving Pension Credit. The benefit is designed to help those on a low income, regardless of homeownership status. What matters is your income, which includes state and personal pensions, earnings, and most social security benefits. It’s important to note that some income sources, such as disability payments, the Winter Fuel Allowance, and Housing Benefit, are excluded from the calculations.
What About Savings?
Having savings doesn’t automatically mean you can’t claim Pension Credit, but it does affect how much you can receive. If you have savings over £10,000, every additional £500 counts as £1 per week of extra income. For example, if you have £11,000 in savings, this would be treated as £2 more income per week. Savings include cash, investments like stocks and shares, and any property you own besides your main home. However, your primary residence, as well as personal items like jewellery and cars, are not considered in this calculation.
The Two Parts of Pension Credit
Pension Credit is divided into two parts: Guarantee Credit and Savings Credit.
Guarantee Credit tops up your weekly income to a minimum level. For single people, this is £218.15, and for couples, it’s £332. If you have disabilities or caring responsibilities, you may be eligible for additional amounts. For instance, the Severe Disability Addition could add £81.50, while the Carer’s Addition could add £45.60 to your weekly income.
Savings Credit is only available to those who reached state pension age before April 6, 2016. This benefit could add up to £15.94 a week for single people and £17.84 for couples.
Why You Should Apply
Even if you think you might only receive a small amount, it’s worth applying for Pension Credit. This is because even a minor top-up could unlock additional benefits like the means-tested Winter Fuel Payment, free TV licences for those over 75, and automatic help with electricity bills.
You can apply for Pension Credit by calling 0800 99 1234 on weekdays between 8am and 6pm or by visiting gov.uk/pension-credit/eligibility to check your eligibility. It’s a good idea to apply before December 21, as claims made by this date can be backdated by up to three months, potentially qualifying you for the one-off Winter Fuel Payment in November or December.
Get Help with Your Application
Pension Credit can be a complex benefit, especially when considering the different parts and eligibility rules. If you need help understanding your eligibility or completing your application, don’t hesitate to seek assistance.
For advice related to benefits, you can contact our advice.scot team at 0808 800 9060. They can provide guidance tailored to your situation and ensure you’re getting all the support you’re entitled to.
