Rt Hon Alistair Darling MP

Labour Party | Edinburgh South West

Pension Credit

The new Pension Credit provides more financial help to pensioners.  This is aimed at tackling pensioner poverty and rewarding pensioners who have a saved a little for their retirement. For the first time in the history of the welfare state, the Government will ensure that it pays to save.

The Pension Credit, guarantees an income of at least £109.45 a week for a single pensioner and £167.05 for pensioner couples, linked to earnings throughout this Parliament

In the first year following its introduction, in March 2004, analysis showed:

• Pension Credit average award was £42.60 a week per household
• it’s more generous than the old system, and amongst households gaining, the average increase in income was £12.90 per week
• over three million pensioners receive the Pension Credit
• pensioners in poverty has fallen by half a million since 1997(the proportion of pensioners in poverty is now the lowest since the mid-1980s)
• compared with 1997, pensioner households were on average £1,350 a year better off – around £26 better off a week
• poorest third of pensioners are £33 a week better off since 1997
• pensioner’s weekly incomes have increased by around 25 % in real terms

In addition to the Pension Credit, the Government has introduced new measures to help all pensioners, including real increases to the basic state pension; the Winter Fuel Payment, paid at £200 to all pensioners and at £300 for the over 80s; free TV licences for the over 75s; free eye tests and prescription charges; and most recently we have announced a £200 payment for all households paying council tax which includes someone over 65.

How To Apply

It could not be easier to apply. Pensioners can claim Pension Credit over the phone in a single call to the dedicated freephone line on 0800 99 1234 (text phone 0800 169 0133). Open 8 am – 8 pm Monday to Friday and 9 am to 1 pm on Saturdays. You should have your National Insurance Number to hand.

It is also possible to download the application form from the pension service website at: www.thepensionservice.gov.uk