Pension Credit amount reduced from April?

w2bMortFree

A relative currently gets a basic state pension, along with a pension (guarantee) credit amount which tops her up to the current weekly amount of £173.75. 

She's recently received notification of her pension credit reducing by approximately 50p from April.  Not being familiar with any of this, does this seem right?

I would have imagined that her basic pension will increase a little from April, which in turn increases pension credit?

She currently also gets her rent paid through housing benefit and has her council tax paid if this has any impact?

Also, would she need to advise the council of this pension credit reduction, or would that information automatically feed through?

Any advice would be appreciated.

bengal-stripe

State Pension will be topped up with Pension Credit to reach the weekly guarantee credit amount of £177.10 for a single claimant as of April 12th 2021 (The amount was £173.75 in 2020/21). Your relative's State Pension will be raised to get the required amount. She should have received a letter telling her the new amount of State Pension first, then a week or so later a notification about Pension Credit. Maybe there is some delay in the mail. Rent and Council tax will be fully paid by Housing- and Council Tax Benefit, just as now. She should receive notification of that from the Local Authority.

If she doesn't receive a total of £177.10 from April 12th and thereafter, contact the DWP.

calcotti

The combined total of Pension plus Pension Credit will increase in April but the SP has slightly risen more than the combined total so, as a result, the PC amount is slightly less.

w2bMortFree

Thank you both for explaining.

I did have a look on the GOV website for benefits  and pension rates 2021/22, but must've missed the pension guarantee credit amount.

Makes perfect sense - so only the basic pension gets the 2.5% increase, followed by topping up with PC to the new rate.

I don't think she's received the letter regarding the increase in her state pension though?

I suppose this applies to everyone / council - with these annual statutory increases, is she still expected to inform the council (housing ben and CTR), or do councils assume / work with new rates (provided no change in circumstances reported)?

Thanks again.

calcotti

w2bMortFree said:

I don't think she's received the letter regarding the increase in her state pension though?

I would expect her to have received that by now but I guess it takes time to get all of the letters issued.

w2bMortFree said:.., is she still expected to inform the council (housing ben and CTR), or do councils assume / work with new rates (provided no change in circumstances reported)?

Councils should be aware of changes to her SP and PC without her informing them. If there are any other changes she would need to tell them.

w2bMortFree

Thanks calcotti.

I'll ask her to keep an eye out for the main SP letter increase, as it seems that may have got lost in the post.

Makes sense for councils to apply new rates as can imagine they'd be inundated with notifications if everyone had to notify them. 

I recall the council wasn't particularly happy that my relative did not inform them that she applied for SP, as they were informed / updated by DWP directly.  I assume the same will apply with new rates every year.