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  • FIRST POST
    MM030538
    Pension Credit Decrease For 2012 ?
    • #1
    • 28th Jan 12, 1:52 PM
    Pension Credit Decrease For 2012 ? 28th Jan 12 at 1:52 PM
    I live in Scotland and currently get a pension of £522.40 every 4 weeks.

    This is because i did not receive my pension when i hit 60 and received it around five years later.

    I have been getting Pension Credit Guarantee of £23.22 every week.

    I have just received a letter stating my pension credit will go down to £20.67 from April 2012.

    I thought pension credit was going up by around £5 and not down, the letter does not really go into detail as to why it is going to be less.

    Why am i receiving less pension credit. ?
Page 1
    • molerat
    • By molerat 28th Jan 12, 2:16 PM
    • 13,754 Posts
    • 8,376 Thanks
    molerat
    • #2
    • 28th Jan 12, 2:16 PM
    • #2
    • 28th Jan 12, 2:16 PM
    Pension credit is going up but so is your pension. You are guaranteed £137.35 this FY and it goes up to £142.70 next FY. PC is the difference between your actual pension and the guaranteed amount not a fixed sum.
    www.helpforheroes.org.uk/donations.html
    • anmarj
    • By anmarj 28th Jan 12, 8:05 PM
    • 1,450 Posts
    • 1,125 Thanks
    anmarj
    • #3
    • 28th Jan 12, 8:05 PM
    • #3
    • 28th Jan 12, 8:05 PM
    alos the savings credit element has gone down this year which will impact on the pension credit award
    still happily married and mummy to one

    "A little knowledge is a dangerous thing"
  • MM030538
    • #4
    • 28th Jan 12, 8:45 PM
    • #4
    • 28th Jan 12, 8:45 PM
    Pension credit is going up but so is your pension. You are guaranteed £137.35 this FY and it goes up to £142.70 next FY. PC is the difference between your actual pension and the guaranteed amount not a fixed sum.
    Originally posted by molerat
    I get more than that due to missing almost five years of my pension, whether thats called a deferred payment or not i have no clue but i had the opportunity to take a lump sum of £22,000 pounds or a higher payout per week, i chose the latter.

    I am still not sure why pension credit guarantee drops for me since the formula you just said does not really apply to me because of the above, i was getting slightly more due to not getting my pension on my 60th birthday.

    I mean to say if i was getting the equivalent of £130.60 a week this year and a pension credit of £23.22 then that makes £153.87 a week.

    This year if pensions go up by a little over £5 then i would say i get around £136 a week and pension credit guarantee of £20.67 then its roughly £157 a week, thats a little over £3 a week increase, not exactly as promised by this government and thats not keeping up with inflation.

    So pensions may well be going up but so has everything you can buy including fuel and food, my shopping bill is 25% higher than two years ago, my fuel bills are also significantly higher.

    Putting pensions up and putting pension credit guarantee down seems to me like giving with one hand and taking with the other and i'm not understanding why that is happening, it was my understanding after the last budget that i would get around £10 increase thanks to the pension and guarantee going up, now i see its around £3 thanks to the give and take policy, seems wrong to me, an increase of £3 hardly pays anything now.
  • canaster
    • #5
    • 30th Jan 12, 7:58 PM
    • #5
    • 30th Jan 12, 7:58 PM

    I am still not sure why pension credit guarantee drops for me since the formula you just said does not really apply to me because of the above, i was getting slightly more due to not getting my pension on my 60th birthday.

    I mean to say if i was getting the equivalent of £130.60 a week this year and a pension credit of £23.22 then that makes £153.87 a week.
    Originally posted by MM030538
    Hi MM. Welcome to MSE.

    You dont get more pension credit because you were treated as deferring your pension. You simply get more state pension; and this reduces your pension credit, pound for pound.

    What is difficult to understand, from the figures you have given, is how you get a pension credit of £23.32 when the correct figure would appear to be £6.75??

    The obvious answer is that you also get a Premium of some kind but I cannot see any premium that correlates to the apparent excess amount of £16.42 that you currently receive.
    • sleepless saver
    • By sleepless saver 30th Jan 12, 9:20 PM
    • 2,619 Posts
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    sleepless saver
    • #6
    • 30th Jan 12, 9:20 PM
    • #6
    • 30th Jan 12, 9:20 PM

    What is difficult to understand, from the figures you have given, is how you get a pension credit of £23.32 when the correct figure would appear to be £6.75??

    The obvious answer is that you also get a Premium of some kind but I cannot see any premium that correlates to the apparent excess amount of £16.42 that you currently receive.
    Originally posted by canaster
    Perhaps the OP is getting some savings pension credit as well as guarantee pension credit. This would explain the disparity.

    Guarantee pension credit is going up by 3.9% in April. As anmarj explained above, savings credit is being reduced.
  • canaster
    • #7
    • 30th Jan 12, 9:55 PM
    • #7
    • 30th Jan 12, 9:55 PM
    Perhaps the OP is getting some savings pension credit as well as guarantee pension credit. This would explain the disparity.

    Guarantee pension credit is going up by 3.9% in April. As anmarj explained above, savings credit is being reduced.
    Originally posted by sleepless saver
    Thanks SS That would explain it. The only mystery now, is why the o/p declined a lump sum of 22K in favour of an increased pension that is of no value to her since it just decreases her pension credit entitlement.
    • sleepless saver
    • By sleepless saver 31st Jan 12, 10:47 AM
    • 2,619 Posts
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    sleepless saver
    • #8
    • 31st Jan 12, 10:47 AM
    • #8
    • 31st Jan 12, 10:47 AM
    Thanks SS That would explain it. The only mystery now, is why the o/p declined a lump sum of 22K in favour of an increased pension that is of no value to her since it just decreases her pension credit entitlement.
    Originally posted by canaster
    Not sure it would have made that much difference, as she would be assumed to have income from the lump sum after the first £10k. Too tired to work it out though (see username!)
  • canaster
    • #9
    • 31st Jan 12, 1:52 PM
    • #9
    • 31st Jan 12, 1:52 PM
    Not sure it would have made that much difference, as she would be assumed to have income from the lump sum after the first £10k. Too tired to work it out though (see username!)
    Originally posted by sleepless saver
    The lump sum payment is completely ignored for the purposes of claiming pension credit, housing benefit and council tax benefit.
    • meg72
    • By meg72 31st Jan 12, 2:19 PM
    • 4,439 Posts
    • 41,639 Thanks
    meg72
    The lump sum payment is completely ignored for the purposes of claiming pension credit, housing benefit and council tax benefit.
    Originally posted by canaster
    This is quite true, I was offered a lump sum or higher pension on taking advice was told if Itook a higher pension it would affect HB PC and CC,so took the lump sum.
    GC is to spend same or bit less than last year.
    Jan 50/50.Feb100/54 Mar 50/60.April 100/72.
    May50/95.June50/55.July85/72.Aug50/49
    Sept 40/45Oct 45/40.Nov 50/60 Dec 100/85
    total for year 765/732
    • sleepless saver
    • By sleepless saver 31st Jan 12, 2:20 PM
    • 2,619 Posts
    • 2,365 Thanks
    sleepless saver
    The lump sum payment is completely ignored for the purposes of claiming pension credit, housing benefit and council tax benefit.
    Originally posted by canaster
    Thanks, I had forgotten about that.
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