State Pension Credit

updated: January 22, 2010

The State Pension Credit is a means tested social security benefit which commenced on 6 October 2003. The State Pension credit aims to provide people aged 60 and over with a minimum level of income and to give some extra help to people aged 65 and over who have modest incomes above the minimum guarantee and who have made savings for their retirement.

The State Pension Credit replaces the income support (minimum income guarantee) for people aged 60 and over. The State Pension Credit also includes a new type of assistance, called savings credit, for people aged 65 and over.

The credit consists of two elements, the Guarantee Credit and the Savings Credit.

Only certain types of income are included when working out whether you are entitled to Pension Credit. These types include:

(1) pensions (including occupational pensions, private pensions and State pension)

(2) benefits, (for example, Carer's Allowance)

(3) earnings from a job

Types of income that are not counted include:

(a) Attendance Allowance

(b) Disability Living Allowance

(c) Housing Benefit

(d) Council Tax Benefit

To obtain further information please click here for our pdf Guide to State Pension Credit.