Pension Credit is a means-tested, non-taxable benefit payable in two parts the ‘Guaranteed Credit’ and the ‘Savings Credit’. The Guaranteed Credit lifts the claimant’s income to £142.70 per week for a single person and £217.90 for couples. The Savings Credit applies if you have other income over the basic State Pension from sources such as occupational pensions or savings. The amount of savings credit can be up to £18.54 for a single person and £23.73 a week for couples. The minimum age to qualify for Guarantee Credit is gradually rising from age 60. If you turned 60 after 6 April 2010, you can check when you qualify by calling the Pension Service. The minimum age for Savings Credit is 65 for both you must be a UK resident. Applications are made as a single person or as a couple. If applying as a couple, at least one member must be of the qualifying age. Your income including tariff income must be below a prescribed level and be UK resident. Capital above £10,000 is assumed to produce a tariff income of £1 for every £500 or part thereof in excess of the limit.
The Pension Credit Guarantee amount can include a premium for severe disability amounting to £58.20 per person per week. To qualify you must be receiving Attendance Allowance or the middle or higher rate of the care component of Disability Living Allowance, be living alone and not have anyone receiving a Carer's Allowance for looking after you.
Attendance Allowance is a non-means tested non-taxable allowance for people aged 65 years or over who are physically or mentally disabled and need personal care or support. There two rates, a lower rate of £51.85 per week for people who need personal care by day or night and a higher rate of £77.45 per week for people who need care by both day and night. In Scotland, if you receive a personal care contribution, entitlement to Attendance Allowance ceases
Disability Living Allowance
Disability Living Allowance is a non-means tested non-taxable benefit paid to people under the age of 65 years who are physically or mentally disabled. There are two components, the care component and the mobility component.
The care component is paid in three rates. The lower rate is £20.55 if you need care for a significant portion of the day or are unable to prepare a cooked meal. The middle rate of £51.85 is if you needed frequent attention or continual supervision throughout the day or prolonged or repeated attention at night. The Highest rate of £77.45 per week is paid if you satisfy the care and/or attention conditions both day and night
The mobility component is paid at two rates. A lower rate of £20.55 per week if, although able to walk, you need someone to provide guidance or supervision for most of the time you are outdoors. The higher rate of £54.05 per week is paid if you are unable or virtually unable to walk due to a physical disability are severely mentally impaired and also qualify for the care component at the highest rate.
Winter Fuel Payment
Winter Fuel Payment is a non means tested annual amount paid if you are aged 60 years or over. The amount paid will depend on your circumstances being either £100 or £ 200 with an addition of either £50 or £100 if you were aged 80 years or over.
If you live in a care home and are not in receipt of Pension Credit you should get £100 aged 60 to 79 and £150 if you are aged 80 years or over.
More about Winter Fuel Payments
While in Hospital
If you need to go into hospital this will not affect your State Pension. If you receive attendance Allowance or Disability Living Allowance these will stop after four weeks. This will also have the effect of reducing your Pension Credit if you are receiving the severe disability premium which is dependent on you being eligible for Attendance Allowance.
Carer's Allowance and Carer Premium
Carer’s Allowance is a non-means tested but taxable benefit. It is paid at the rate of £58.45. You may be eligible if you regularly care for someone who is severely disabled, living at home, and in receipt of Attendance Allowance, or of the middle or higher rate of Disability Living Allowance, or certain other disability benefits.
More about Carer’s Allowance
For more information on benefits for people of retirement age please visit www.direct.gov.uk