Pension Credit : New Rules Coming In This May

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As we approach the month of May, many people are wondering what changes are coming to Pension Credit, news a vital benefit that helps millions of households across the UK. In this article, we will break down the new rules and explain everything, so you can understand how it may affect you.

What is Pension Credit?

Pension Credit is a government benefit designed to help people who are aged 60 or over, or those who are under 60 but have a disability or illness that prevents them from working. It is a means-tested benefit, which means that the amount you receive depends on your income and savings.

The good news is that nearly 9 out of 10 claims are successful, and 2.5 million households across the UK receive Pension Credit.

New Rules Coming in May

From 15 May, there will be changes to the rules for Pension Credit, which will affect couples who are eligible for the benefit. The main change is that couples will now need to meet new eligibility criteria to receive Pension Credit. To be eligible, one of the following must apply:

  • Both partners must be of pension credit qualifying age (which is the same as the state pension age)
  • One partner must have reached state pension age and claim housing benefit for the couple
  • One partner must have reached state pension age and the other partner must be under state pension age, but have a disability or illness that prevents them from working

How Will This Affect Me?

If you are already receiving Pension Credit, you do not need to worry – your existing claim would not be affected as long as you received Pension Credit on or before 14 May 2019 and continue to be eligible. 

However, if you are a couple and you are not yet receiving Pension Credit, you may need to meet the new eligibility criteria to qualify.

To determine whether you are eligible, you can use the Pension Credit calculator on GOV.UK. This will ask for your date of birth and will give you an idea of how old you need to be to qualify. It is a good idea to gather everything you can about your weekly income before applying, including:

  • Most earnings from an employer or from being self-employed – your earnings will be worked out as an average if they go up and down over the year
    • Any savings or investments you have – this could include:Savings accounts
    • Investments, such as shares or property
    • Any savings or investments over £10,000 will affect the amount of Pension Credit you get

What Can I Do?

If you are unsure about your eligibility or how the new rules will affect you, it is a good idea to act now. You can:

  • Contact the Pension Credit helpline on 0800 99 1234 for more information and advice
  • Use the Pension Credit calculator on GOV.UK to get an idea of your eligibility
  • Gather all the necessary information about your income and savings to make an informed decision about applying for Pension Credit

Savings Credit is a part of Pension Credit, a weekly benefit that tops up your income if you’re over State Pension age and on a low income. To check if you can get Savings Credit, follow these steps:

  • You must have reached State Pension age before 6 April 2016 to be eligible for Savings Credit.
  • You must have a weekly income of at least £189.80 if you are single or £301.22 if you are claiming as a couple.
  • You must have a modest amount of income or savings to be eligible for Savings Credit. If you have £10,000 or less in savings and investments, it will not affect your eligibility. If you have more than £10,000, every £500 over £10,000 counts as £1 income a week.
  • You can claim Savings Credit whether or not you are working. You do not have to have paid national insurance contributions.

How to apply for Savings Credit?

To apply for Savings Credit, you can:

  • Contact the Pension Service helpline: 0800 99 1234
  • Visit the Citizens Advice website: www.citizensadvice.org.uk
  • Use the Benefits Calculator on the Gov.UK website: www.gov.uk/benefits-calculator

Important notes to know

  • If you are already getting Pension Credit, you will keep getting it unless your circumstances change.
  • If you are a couple, you cannot usually make a new claim for Pension Credit if one partner is under State Pension age.
  • The new rules coming in May may affect which couples are eligible for Pension Credit, so it is essential to check your eligibility and apply if you are eligible.

Conclusion

In conclusion, the new rules for Pension Credit coming in May aim to simplify the eligibility criteria for couples. While some people may need to meet new requirements, many households will still be eligible for this vital benefit. By understanding the changes and taking action, you can ensure you are getting the support you need to live comfortably in retirement.

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