Pension Credit provides pensioners with extra cash to help with living costs (Image: Getty)
State pensioners across the UK who are claiming Pension Credit are set for an income boost from April as new payment rates are introduced.
Pension Credit is a benefit issued by the () to people over age and on a low income. It provides those who are eligible with extra cash to help with , but it also serves as a gateway to unlock a swathe of additional help. The benefit alone is worth around £4,200 on average, but those who claim can also get support with housing costs, a Council Tax discount, a free TV licence, help with NHS treatment and be eligible for a .
You need to live in England, Scotland or Wales and have reached age – which is currently 66 for both men and women – to qualify for Pension Credit.
Under the current rates, the benefit tops up your weekly income to £218.15 if you’re single, or to £332.95 if you have a partner. The top up – and extra amounts if you have other responsibilities and costs – are known as ‘Guarantee Credit’.
But from April 6, the government has confirmed an increase to the standard minimum guarantee for Pension Credit, with the weekly rates set to rise by 4.1%.
Under the new rates, which will come into effect next month, the single weekly rate will increase from £218.15 to £227.10 and the joint weekly rate will increase from £332.95 to £364.60.
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It means that those getting the single rate will get an extra £8.95 per week, while those on the joint rate will get an extra £31.65 per week.
Over the course of a year, this will provide those who are single with £465.40 more annually, while couples with a joint weekly income will be £1,645.80 better off per year.
The government said: “To help make sure pensioners are protected in their retirement, we have also confirmed a 4.1% increase to the basic and new , as well as the standard minimum guarantee for Pension Credit, from April next year.
“Over 12 million pensioners will benefit as the full new will rise from £221.20 to £230.25 a week, providing an extra £470 a year. The full basic will increase from £169.50 to £176.45 per week, worth an extra £360 annually.”