what is pension credit

Understanding Pension Credit – Everything You Need To Know!

Do you aim to get a tax-free tested benefit at retired age? Which can work with low income and the extent can go 1000 pounds each year. We have got you covered here. Let’s carry on reading to understand what is pension credit, how to check if you are eligible for the criteria.

If you live in the UK on a low income and you are over state pension age, you can possibly get 60 pounds every week as a credit pension.


Learn simple yet easy ways to qualify for pension schemes if you are residing in the UK, contact our Experts at Accotax, and get a swift response.


This blog will help you to understand how you can make it to getting extra money from pension credit. This will help you to ease your living cost even if you are over your state pension age. Service charges and housing costs will not sound scary to meet the requirements.

Before we delve deep into these details, let’s have a quick view of what this blog has to unfold for you. In this blog, we will cover:

  • What Is Pension Credit?
  • Eligibility Criteria For Pension Credit
  • How Advantageous It Is For Me?

Pension Credit

What Is Pension Credit?

Pension credit offers people over state pension age a top-up on their incomes. This is a tested benefit that aims to benefit people over state pension age. Pension Credit has two parts. some of the people can qualify for both of them whereas, others can only qualify for one part. They are mentioned below for you.

  • Saving Credit
  • Guarantee Credit

Saving Credit:  People who reach state pension age before April 2016 and you were able to make provision through salary, private pension, or your savings. The benefits may vary according to your status. for example, if you are single you will get 14.04 every week. 15.71 pounds if you are in a couple.

Moreover, to qualify there are certain terms that are required to meet. You have to earn a threshold amount that again varies for single people and those who live in a couple.

  • For single people, it is 153.70 pounds.
  • For people who live in a couple, it is 244.12 pounds.

Guarantee Credit: The main part of the pension credit is guarantee credit. This helps to give a top-up to your weekly income. If you are single the standard minimum guarantee level is top-up is 177.10 pounds. If you are in a couple this would be 270.30 pounds.


To ensure smooth implication and compliance with the pension, speak to our consultants at Accotax and enjoy hassle-free processing.


Eligibility Criteria Of Pension Credit:

Now that you know what is pension credit,  you aim to qualify for it, and here are the important facts listed for your help.

  • Ensure that you have reached state pension age.
  • You are residing in the UK, Northern Ireland, Wales, or Scotland.
  • In case you are in a couple, you both are required to reach state pension age.

If you are in a couple, this doesn’t specifically mean that you have to be in a civil partnership or married. It just requires you both are living together. One of the partners will apply for it and will be asked to provide the details of both the partners.

The criteria for saving credit may vary a bit. here are the conditions that are required to be met.

  • If you are a man, ensure that you have reached age 65 before 6th April 2016 (In case of a new claim).
  • The female needs to reach the age of 63 before 6th April 2016.

If one of the partners meets all the conditions to qualify, you can still qualify as a couple. However, you and your partner must meet the conditions below:

  • From 6th April 2016, you were continuously entitled to saving credit.
  • You were awarded saving credit from a day before 6 April 2016.


How Advantageous It Is For Me?

On average 58 pounds is the amount that you can enjoy every week. According to the Government, this is more than 3000 pounds a year. However, only certain people who followed the directed guide by the government will be eligible. Also, what you get and how advantageous it can become for your case depend on these three facts that are mentioned below.

If you are A couple: This defines the value of your income along with your partner’s income will be considered. Also that you are living with a partner regardless of the marries status.

The amount that you have invented or saved: In case the amount invested or saved is over 10,000 pounds, it will be converted for an income rate of 1 pound for every 500 pounds.

The Income: This will include all types of benefits including job salary, work pension, state pension, and income from any other source of pension.



To sum up the discussion, we can say that credit pension is a real top-up on your income. However, to get this advantage above discussed terms and conditions are to be taken into account seriously. Otherwise, the request to credit pension will not be entertained. We hope this blog helped to develop a better understanding of what is credit pension is and how you can qualify for it.


Still, seeking a piece of expert advice to know more about the eligibility criteria? contact our Professionals now!

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