1 day Ago By Claire Schofield
State pensioners who are claiming Pension Credit will benefit from an income boost from today as new payment rates take effect. Pension Credit is a benefit issued by the Department for Work and Pensions ( DWP ) to people over State Pension age and on a low income to provide extra cash to cover living costs . The benefit acts as a “a lifeline” in retirement to eligible pensioners as it unlocks access to a huge array of other financial support, including help with housing costs, Council Tax and the Winter Fuel Payment .
Alone it is worth arond £4,300 per year on average, according to the DWP , and it can be backdated by up to three months. You need to live in England, Scotland or Wales and have reached State Pension age - which is currently 66 for both men and women - to qualify for Pension Credit. From April 6 (the start of the new tax year), the UK government has confirmed an increase to the standard minimum guarantee for Pension Credit, which will see the weekly rates rise by 4.
1%. Under the new rates, which take effect from today, Sunday April 6, the benefit tops up your weekly income to £227.10 if you’re single, or to £364.
60 if you have a partner. The top up - and extra amounts if you have other responsibilities and costs - are known as ‘Guarantee Credit’. It means that as of today, Sunday, April 6, the single weekly rate has gone up from £218.
15 to £227.10, while the joint weekly rate has gone up from £332.95 to £364.
60. So those getting the single rate will get an extra £8.95 per week undee the new rates, while those on the joint rate will get an extra £31.
65 per week. Over the course of a year, this uplift will provide those who are single with £465.40 more annually, while couples with a joint weekly income will be £1,645.
80 better off per year. The government said: “To help make sure pensioners are protected in their retirement, we have also confirmed a 4.1% increase to the basic and new State Pension , as well as the standard minimum guarantee for Pension Credit, from April next year.
“Over 12 million pensioners will benefit as the full new State Pension will rise from £221.20 to £230.25 a week, providing an extra £470 a year.
The full basic State Pension will increase from £169.50 to £176.45 per week, worth an extra £360 annually.
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