Pension Credit

Department for Work and Pensions written question – answered on 21st January 2016.

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Photo of Owen Smith Owen Smith Shadow Secretary of State for Work and Pensions

To ask the Secretary of State for Work and Pensions, what estimate he has made of how many people will receive a lower pension credit entitlement as a result of the rise of the single saving credit threshold by 5.8 per cent and of the couples' threshold by 5.5 per cent.

Photo of Justin Tomlinson Justin Tomlinson Parliamentary Under-Secretary of State (Department for Work and Pensions) (Disabled People)

The single rate of the Savings Credit threshold will rise by 5.8 per cent and the couple rate by 5.5 per cent in April 2016; anyone in receipt of Savings Credit will be affected by this change. The latest estimates of Pension Credit recipients split by those in receipt of Guarantee Credit only, Guarantee Credit and Savings Credit, and Savings Credit only are available from the DWP tabtool:

http://tabulation-tool.dwp.gov.uk/100pc/tabtool.html

The actual impact of up-rating on someone’s Pension Credit depends on a variety of factors, including the make-up of their other income and how or if it increases annually. For example, the basic State Pension will be increased with earnings under the “triple lock”, and the Standard Minimum Guarantee in Pension Credit will also be increased with earnings. Those in receipt of Savings Credit should be better off overall from April 2016 if their State Pension or other income increases.

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