What's Your Problem ?

I'm 72 years of age. At the moment I get the Minimum Income Guarantee, State Retirement Pension and a small works pension. I've got savings of about £2,000. My neighbour keeps telling me that there's a new benefit called the Pension Credit. What is it?

Pension Credit is a new benefit introduced on the 6th October 2003. It's made up of two parts, namely a Guarantee Credit and a Savings Credit. The Guarantee Credit replaces the Minimum Income Guarantee for people aged 60 or over. The Savings Credit is designed to reward those who have planned for their retirement either through savings or a pension scheme and who are aged 65 or over. You may be able to qualify for either or both of the credits. There won't be an upper capital limit or a maximum number of hours that can be worked, although if you do work some of your earnings will be taken into account when working out how much Credit you are entitled to. Pension Credit will be administered by the Pension Service which is part of the Department of Work and Pensions. You can claim in person, by telephone (0800 99 1234) or in writing, although you shouldn't have had to claim if prior to the 6th October 2003 you were aged 60 or over and already getting Income Support (or the Minimum Income Guarantee). The Pension Service should already have contacted you. If you need any further help and / or want to find out whether or not you are entitled to the Pension Credit, do not hesitate to contact your local CAB.

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