Personal Finance

State pensioners urged to check eligibility for ‘perk’ worth £3,000 per year

While the state pension can offer Britons vital payments, many will be looking for an extra cash boost. This is more likely to be the case if a person has not managed to unlock the full state pension amount. There is assistance on hand for certain groups of pensioners, and the Department for Work and Pensions (DWP) is encouraging action.

The payment, often described as a “perk”, is called Pension Credit, designed to help people over state pension age who are on a low income.

It provides individuals with extra money to help with living costs, and housing costs such as ground rent or service charges.

Pension Credit is totally separate from the state pension, but could prove useful for many.

People can still get Pension Credit even if they have other income, savings or own their own home.

READ MORE: State pensioners to receive cash bonus in time for Christmas

The Pension Credit system then calculates income, either of an individual, or of a couple combined.

It tops up weekly income to £177.10 for single people, and a joint income to £270.30 for couples under a process known as Guarantee Credit.

However, there is also another form of support under Pension Credit known as Savings Credit.

The sum is available to individuals who reached state pension age before April 6, 2016, and who saved money for retirement.

People will get up to £14.04 a week if single, and £15.71 per week if they have a partner. 

Individuals might still get some Savings Credit even if they do not get the Guarantee Credit part of Pension Credit.

On average, Pension Credit is said to be worth £3,000 per year, and as a result could provide a substantial form of help for older people. 

The amount will vary, but Britons can check how much they might get using a Pension Credit calculator.

People can also call the Pension Service helpline on 0800 731 0469 if they need extra assistance.

Britons will be able to start their application up to four months before reaching state pension age, but an application can be made at any time.

The information people will need to hand includes: 

  • National Insurance number
  • Information about any income, savings and investments they have
  • Information about income, savings and investments on the date a person wants to backdate their application to (usually three months ago or the date they reached state pension age).


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