Pension credit

Pension credit can be awarded to those who are on a particularly low income in retirement and the payments can come in or be affected by many elements.

The standard minimum guarantee rates for pension credit will change as follows:

• Single – from £173.75 now to £177.10 in 2021
• Couple – from £265.20 now to £270.30 in 2021

Additional amounts provided for severe disabilities and carers will also have their rates rise:

• Additional amount for severe disability for single claimants – from £66.95 now to £67.30 in 2021
• Additional amount for severe disability for couples (where one qualifies) – – from £66.95 now to £67.30 in 2021
• Additional amount for severe disability for couples (where both qualify) – from £133.90 now to £134.60 in 2021
• Additional amount for carers – from £37.50 now to £37.70 in 2021

Some pension credit claimants may recieve an additional payment from what is known as savings credit if they’ve put money aside for retirement.

These payments will be based on a persons relationship status and the four rates involved will be increasing next year:

• Threshold – single -from £150.47 now to £153.70 in 2021
• Threshold – couple – from £239.17 now to £244.12 in 2021
• Maximum – single from £13.97 now to £14.04 in 2021
• Maximum – couple – from £15.62 now to £15.71 in 2021

Having children, being in a polygamous marriage and non-state pension considerations will also impact pension credit in the coming year.

As the following details explain:

• First child born before April 6 2017 – from £64.82 now to £65.10 in 2021
• Subsequent children – from £54.32 now to £54.60 in 2021
• Disabled child lower rate – from £29.52 now to £65.10 in 2021
• Disabled child higher rate – from £92.12 now to £92.54 in 2021
• Amount for claimant and first spouse in polygamous marriage – from £265.20 now to £270.30 in 2021
• Additional amount for additional spouse – from £91.45 now to £93.20 in 2021
• Non-state pensions (for pension credit purposes) statutory minimum increase to non-state pensions – from 1.7 percent now to 0.5 percent in 2021