Care and support

What happens to pension credit?

In October 2003, pension credit replaced income support for people aged 60 or over.
There are 2 elements to the pension credit:

• the guarantee credit - which is the minimum the claimant is expected to live on according to their circumstances.
• the savings credit - an additional amount payable to claimants with modest savings and income other than the state pension.

For more information about pension credit click on the link entitled benefits for older people on the right side of the page.

When you enter a care home on a temporary basis, your pension credit is not affected. If you are a member of a couple, you continue to be paid as a couple.

When you enter a care home on a permanent basis, your pension credit may be affected if you come into the following groups:

• if you are a member of a couple and only one of you is going into a care home. When you become a permanent resident, you are treated as a single person. This means that you and your partner will need to make claims as single people.
• if you have capital. When you become a permanent resident, the capital rules change. Instead of assuming an income from capital above £6,000, pension credit only assumes an income from capital above £10,000. There is no upper savings limit for pension credit wherever you are living.
• if you own your home. If you are a permanent resident and do not intend to return home, your house will be treated as capital. It is also treated as providing an income unless:
• It is occupied by your partner (but not if you are estranged or divorced) OR
• It is occupied by a partner or relative* as their home if that person is over 60 or incapacitated OR
• It is occupied by a former partner, from whom you are estranged or divorced, but only if they are a lone parent
• You are taking steps to sell the property (in which case the DWP ignore its value for 26 weeks – they may ignore it for longer if it is reasonable to in the circumstances)

*NB: if you have been or were refused pension credit because the relative occupying the property was not considered a “close” relative – seek advice.

If you transfer half of your occupational pension to your partner who is living at home, as you are allowed to do, be aware that this payment may simply reduce the amount of pension credit that your partner gets. The transferred pension doesn’t help them get the savings credit part of pension credit either.

How do I claim pension credit?

If you think you might be entitled to the pension credit claim on a form available from the Pension Service or over the phone. Claim application line - 0800 99 1234. You can also get an application form and more information from www.thepensionservice.gov.uk