Could I lose my Pension Credit If State Pension increases £900 in 2023

dalmatiandave

I am on a Pension Credit of only £22.50 a month. I get this because I am on a State Pension of around £9000 a year and a small private pension of £3800. I have no assets or savings and live in rented accommodation.

I benefit from full council tax relief and receive housing benefit of about £400 a month. The Pension Credit is small but the benefits I receive amount to an extra £4800 a year housing benefit which really helps, I also don't pay council tax which would be £1700.

If the State Pension goes up by about £900 approximately a year I am worried I will lose the Pension Credit. The amount of Pension Credit I receive is small but it allows me to have benefits which are gratefully accepted, it really does help. I worry that even though the State Pension will go up by £900 a year I could effectively lose over £6500 a year in benefits (housing benefit plus council tax support). (I will therefore be about £5600 worse off).

It is just that everybody is going on about a welcome increase in State Pension but I haven't seen any details here or elsewhere about the reality that a lot of people could lose benefits worth far more than the increase in State Pension by losing their Pension Credit

If I lose Pension Credit I will be far worse off than now and I have a daughter to take care of.

Am I right in my thinking.

sheramber

The increase in pension has not been confirmed. It is a proposal by Sunak at the moment.

If and when it is confirmed then it is possible the pension credit limit could be reviewed.

Nothing will be certain until then.

calcotti

If all benefit increases are linked to the September inflation rate there will also be a significant increase in the Pension Credit thresholds. What the consequences of the different changes will be will depend on the numbers and we will not know that until at least November which is when rates for the following year are usually announced.

Even if you lost Pension Credit that doesn't mean you would lose HB and CTR (unless you have savings over £16,000). it would just mean that your entitlement would have to be calculated instead of having automatic entitlement.

p00hsticks

And am I right in thinking that, whilst Pension Credit immediately passports someone to Council Tax reduction and Housing Benefit, not being on it doesn't necessarily mean that you wouldn't be entitled to at least some reduction on the grounds of low income ?

calcotti

p00hsticks said:

And am I right in thinking that, whilst Pension Credit immediately passports someone to Council Tax reduction and Housing Benefit, not being on it doesn't necessarily mean that you wouldn't be entitled to at least some reduction on the grounds of low income ?

Absolutely correct (as per my post at the same time as yours!) unless capital over £16,000 which would exclude HB and CTR if not on PC.

Murphybear

To give you some idea.  My total pension is about £12.5k and my rent is just under £100 a week.  I get about £66 a week HB. 

dalmatiandave

My brain has probably been working overtime but was just worried getting an increase in one thing might see me lose more in another. Will wait and see and deal with it at the time and if necessary will talk with the appropriate contacts.
Thanks for replies.