Money
Pensions
Pension credit - a capital change
Pension credit will rise with a new savings threshold, writes Paul Lewis
More than half a million people who get pension credit will have seen their income go up from the first week in November.
The people affected will all have savings above £6,000. At present any savings above that amount reduce the pension credit you get. But from November 2 that threshold rose to £10,000 and that will raise pension credit by up to £8 a week, though most of those affected will get an extra £3.20 and some will get less. You do not have to claim the extra – it should just appear with the first payment this month.
The new limit also applies to money off your council tax (or rates in Northern Ireland) and, for tenants, to a reduction in rent. All these allowances should rise if they are currently reduced because savings are above £6,000.
The higher savings limit will also mean that 70,000 people excluded from pension credit because of their savings will now be able to get it.
Many more will be able to get council tax benefit or housing benefit for the first time. However, the Government has decided not to seek out or encourage those who are entitled them to claim.
Anyone who has been refused these benefits in the past should find out if they can claim now.
Written by Paul Lewis, this article first appeared in the November 2009 edition of Saga Magazine. Paul's opinions are his own and for general information only. Always seek independent financial advice.
