Can someone please explain Guarantee Credit of Pension Credit

BensonBooga

My 81 year old mum has savings, if she is only able to get about £2 a week in Pension Credit because of savings, would this mean that £2 is part of Guarantee Credit or would it be Savings Credit ? As I know some things, like Social Tariffs on broadband are only available to those with the Guarantee Credit part of Pension Credit. Any advice ? Thanks. 

Rubyroobs

It should say on a benefits calculator or her pension credit award letter if she has already applied whether it is Guaranteed pensions credit, savings pension credit or a combination of both. Guaranteed pension credit is the one that gets you all the freebies- cost of living payments, TV license, free dental care, full rent and council tax paid.

calcotti

BensonBooga said:

My 81 year old mum has savings, if she is only able to get about £2 a week in Pension Credit because of savings, would this mean that £2 is part of Guarantee Credit or would it be Savings Credit ? As I know some things, like Social Tariffs on broadband are only available to those with the Guarantee Credit part of Pension Credit. Any advice ? Thanks. 

It’s impossible to answer your question without knowing what her income is and how much savings she has and whether she has entitlement to additional premiums in addition to the standard single person allowance. It could be either.

if she is claiming her PC letter should tell her.

Spoonie_Turtle

People can get the Guarantee Credit part even with savings, depending on their income and circumstances - it's to top it up to a certain level.

Does she already claim it or is this the result of a benefits calculation?  If the latter, the calculator should specify.  If she already claims, she should get letters telling her how it's worked out.

BensonBooga

Thanks all. I did the Pension Credit calculator for her and it said due to her savings she would only be able to get about £2 a week, but it didn't say if that was classed as Guaranteed Credit or not, as I know PC is made up of 2 parts. It is not really the pension credit I want for her, but the free TV license she used to get before the government stopped them for pensioners. But I know getting PC, even a tiny amount, allows a free TV license (and cheaper broadband). Thanks.  

calcotti

And, as mentioned, even £2 of guarantee Pension Credit would give entitlement to maximum HB and CTR.

Might be worth trying a different calculator to see if it gives you a breakdown.

https://benefits-calculator.turn2us.org.uk/

https://www.entitledto.co.uk/organisations/benefits-calculator

Alternatively, if you are willing to post information about her income and savings it should be simple to calculate.

Rubyroobs

BensonBooga said:

Thanks all. I did the Pension Credit calculator for her and it said due to her savings she would only be able to get about £2 a week, but it didn't say if that was classed as Guaranteed Credit or not, as I know PC is made up of 2 parts. It is not really the pension credit I want for her, but the free TV license she used to get before the government stopped them for pensioners. But I know getting PC, even a tiny amount, allows a free TV license (and cheaper broadband). Thanks.  

Try the Age Uk benefit calculator. It will give you a breakdown on there of which type of Pension credit.

MalMonroe

BensonBooga said:

Thanks all. I did the Pension Credit calculator for her and it said due to her savings she would only be able to get about £2 a week, but it didn't say if that was classed as Guaranteed Credit or not, as I know PC is made up of 2 parts. It is not really the pension credit I want for her, but the free TV license she used to get before the government stopped them for pensioners. But I know getting PC, even a tiny amount, allows a free TV license (and cheaper broadband). Thanks.  

Hi, according to the updated TV licensing site, you can get a free TV licence if you are in receipt of EITHER part.

It says "The free TV Licence for people aged 75 or over applies to those in receipt of either part of Pension Credit – Guarantee Credit or Savings Credit (or both)."

See in this link - https://www.tvlicensing.co.uk/check-if-you-need-one/for-your-home/aged-74-and-over-aud3

Scroll down to the paragraph headed 'what is pension credit'.