As numerous Brits apply for Pension Credit in the hopes of keeping their Winter Fuel Payments this year, many might think they’re not eligible because they have a weekly income above £218.15 for single people or over £332.95 in a couple.
However, some forms of income aren’t counted for the means-tested benefit, which could make people eligible by disregarding the funds that send them over the threshold, while others might not qualify even if the income they physically get is under the qualifying criteria.
The following forms of income, savings and investments are added together to calculate your weekly income:.
- State pension
- Workplace, private or other pensions
- Employment earnings
- Self-employment earnings
- Most social security benefits like Carer’s Allowance and Tax Credits
- Savings or investments over £10,000
If you have deferred your pension, whether this be state, personal or workplace, the amount you would have received if you hadn’t deferred it will still be counted towards your income.
Additionally, for every £500 you have saved or invested over £10,000 is counted as £1 of income. Brits can still be eligible for Pension Credit if they receive more than the weekly thresholds as the following benefits are not actually counted towards your income total:.
- Adult Disability Payment
- Attendance Allowance
- Christmas Bonus
- Child Benefit
- Disability Living Allowance
- Pension Age Disability Payment
- Personal Independence Payment
- social fund payments like Winter Fuel Allowance
- Housing Benefit
- Council Tax Reduction
Pension Credit consists of two parts, which can be claimed separately in some situations if you aren’t eligible for one part.
The first part, Guarantee Credit, is based on your income calculation and tops up your weekly income to £218.15 for single people or £332.95 for couples.
The second part, Savings Credit, is designed for those with significant savings or multiple pension incomes.
To qualify, you must have reached the state pension age before April 6, 2016 and have some retirement savings.
Savings Credit offers a slightly lower rate at £17.01 for single people and £19.04 a week for couples, depending on how much income you receive from your savings, according to MSE.
