Pension Credit may provide Britons additional cash as they reach the retirement age. Yet, what exactly is it? Are you eligible for it? Here’s everything you need to know about it.

What is a Pension Credit?

Pension Credit changes

This income-related benefit aimed at supplementing the U.K. State Pension was introduced by Gordon Brown in 2003. It is the primary aspect of the British welfare system for folks who have reached retirement age.

It is comprised of two parts: The Guarantee Credit and Saving Credit. Find out below if you could be eligible for one or both.

What are the new eligibility requirements for Pension Credit?

Pension Credit changes

First, you should belong to the low-income group. Guarantee Credit will top up your weekly income if you’re a single person earning below £167.25 a week or a couple with £255.25. Only residents of Wales, Scotland, and England qualify for the retirement pension scheme.

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Secondly, you must have reached State Pension age to be eligible for Guarantee Credit. The same age requirement now applies to both men and women and is progressively reaching 66 by October 2020.

Starting May 15 onwards, changes to eligibility requirements will begin. Among the changes state that a couple will only benefit if both or one of them have reached the qualifying age.

A couple with one of them having reached the qualifying age is also eligible for the income-related benefit if he or she claims housing benefit for them as a couple.

Current beneficiaries may continue to get the benefit post-May 15 as long as their circumstances remain unchanged.

A single person from May 15, for instance, will no longer receive Pension Credit if he or she starts living with a partner who is under the qualifying age. The person can only enjoy the benefit again when his or her partner reaches the qualifying age.

Savings Credit is an additional incentive to the folks who were able to save money before they retire or who have income higher than the basic State Pension. The Pension Credit has no savings limit but the amount of money you can receive can be affected if you got over £10,000.

To qualify for Savings Credit, you should have reached State Pension Age before April 6, 2016.

Qualifying beneficiaries could get an additional £15.35 if they are a couple or £13.73 if they are single.