Pension credit
PC is a benefit for people on a low income who are at least pension age. A client’s pension age depends on their date of birth. Pension age is currently 66 (as of 2024) and will eventually go up to 68.
PC is made up of a guarantee credit and a savings credit.
The guarantee credit is the basic amount paid for the client and their partner. It is means tested, but there is no limit on how much capital a client can have.
Extra amounts of guarantee credit can be paid depending on the client’s circumstances – eg, if they are caring for someone or have a disability. PC is a ’passporting’ benefit – ie, it can help the client get maximum HB, free school meals for their children, budgeting loans and Scottish benefits such as funeral support payment.
The savings credit is an additional amount of PC, paid to clients who have qualifying income (eg, retirement pension) over a certain amount. However, savings credit is being phased out and is only available for people who reached pension age before 6 April 2016.
PC is not taxable.