Full list of everything that counts as income against benefits for DWP Pension Credit

Brits applying for Pension Credit to maintain their Winter Fuel Payments might find themselves eligible despite having a weekly income exceeding certain thresholds. While a single person’s income should not exceed £218.15 per week and £332.95 per week for couples, there are types of income that are not considered in the means-tested benefit calculations.

In calculating your weekly income for Pension Credit, various sources of income, savings, and investments are taken into account. This includes state pensions, workplace or private pensions, employment earnings, self-employment earnings, and most social security benefits like Carer’s Allowance and Tax Credits. Additionally, savings or investments over £10,000 are considered, with every £500 saved or invested over £10,000 counted as £1 of income.

Even if your income surpasses the weekly thresholds, you may still be eligible for Pension Credit as certain benefits are not included in the total income calculation. Benefits such as Adult Disability Payment, Attendance Allowance, Christmas Bonus, Child Benefit, and Disability Living Allowance do not count towards your income. Furthermore, social fund payments like Winter Fuel Allowance, Housing Benefit, and Council Tax Reduction are not considered in the assessment of total income.

Pension Credit consists of two components that can be claimed separately. The first part, Guarantee Credit, tops up your weekly income to £218.15 for single individuals or £332.95 for couples based on income calculations. The second part, Savings Credit, is designed for individuals with significant savings or multiple pension incomes. To qualify for Savings Credit, you must have reached state pension age before April 6, 2016, and have retirement savings.

According to MSE, Savings Credit provides a slightly lower rate at £17.01 per week for single individuals and £19.04 for couples, depending on your savings income. It is crucial for individuals seeking Pension Credit to understand the criteria for eligibility and the various factors that are considered when calculating income for this benefit.

In conclusion, while some may initially believe they are ineligible for Pension Credit due to their income exceeding certain thresholds, it is important to consider the specific types of income, savings, and benefits that are taken into account during the assessment process. Being informed about the intricacies of Pension Credit eligibility can help individuals navigate the application process and potentially access the financial support they need.