savings credit

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Hi all....... Is it correct that because I am on the old state pension + pension credit  and not the new one that I can't claim savings credit.

It seems a little unfair to me and is the pension credit element changing under universal credit.

thanks

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  • Posted

    Savings credit is only available to those who reached state retirement age before April 2016. However, if you're  couple and one of you reach state pension age before April 2016 then you may still qualify.

    There's still criteria that you need to meet to be eligible though...

    you have a minimum income of £140.67 a week if you're single, and £223.82 a week if you're in a couple in 2018/19

    you or your partner must be 65 or over

    you must be living in the UK

    you must have made some provisions for your retirement, such as savings or a second pension.

    The maximum savings credit you can get per week is £13.40 for a single person and £14.99 for couples.

    However, the more money you have, the less you get in savings credit. 

    For every £1 by which your income exceeds the savings-credit threshold (£140.67 a week if you're single, and £223.82 a week if you're in a couple), your savings credit is reduced by 40p.

    All of your income is added together to work out how much you'll get. 

    If you have any savings, the first £10,000 isn't counted. Then every £500 you have over that amount counts as £1 of income. 

    Universal Credit is not available if you've reached pension credit qualifying age. You can only claim it if you live with a partner who is eligible for UC and under pension credit qualifying age.

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  • Posted

    Hi Denise.......is my state pension considered income ? I do have some savings.

     

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    • Posted

      Yes, for savings credit it is. You also need to be careful when claiming savings credit because it can affect any Council tax reduction you may receive.
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    • Posted

      The best thing you can do is ring your local CAB and make an appointment. They will help you with a full benefit check, this way you'll know for sure whether you're claiming everything you should be.

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    • Posted

      No problem. I've heard of so many stories where people have claimed that savings credit and ended up being worse off. Problem is then it's too late to cancel if you've already claimed it and then realise you're worse off. If they cancel the claim then they'll still be classed as having the money, meaning you'll be no better off.

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