Pension Credit 23/24 year

ElectricBeagle

7th April 2023

Good morning all.

I’m trying to calculate how much Pension Credit equivalent a person should pay them selves.  They recently received PC and then it stopped for appropriate reasons. In the past I have used both the Pension Credit Calculator on the .Gov.UK website and Age UK PDF for 22/23 and was able to calculate the exact correct amount as they were previously paid by the state and it was simple to do without issue. I did it as recently as last week with the correct result. 

This morning I can find the new Age UK PDF for Pension Credit for 23/24 but when using the .Gov.UK website the PC amount it generates is lower than expected and also lower than what was accurate last week. I’ve quadruple checked the process and boxes ticked and amounts entered and still don’t get a figure that matches what was correct last week pre April 6th new Tax Year. I’ve also cross referenced entries and figures from what was accurate and printed out as the result with what is newly entered and still the amount is less. The individuals circumstances, savings and income has not altered since last week.

Questions:

Does Pension Credit increase at the same percentage (10.1%) as State Pension in the current 23/24 year?

Do you know if the .Gov.UK website is accurate, inaccurate or just slow catching up? 

Am I missing something else? 

Normally this is a simple exercise with an accurate result as expected. 

Presumably the state will already have had to make such calculations for Pensioners on PC early on in this year and already sent letters out to them? February or March seems to be typical time frame for letters to be sent out with new calculations so I would have thought the website would be updated at a similar time.

Thank you for your help and advice in advance.

poppy12345

Pension Credits rates will increase from 10th April by 10.1%. https://www.gov.uk/government/publications/benefit-and-pension-rates-2023-to-2024/benefit-and-pension-rates-2023-to-2024#pension-credit

Pension Credit Standard minimum guarantee Rates 2022/23 (£) Rates 2023/24 (£) Single 182.60 201.05 Couple 278.70 306.85
I didn't understand what you meant by this I’m trying to calculate how much Pension Credit equivalent a person should pay them selves. Then i read your previous thread and understood. For others you can see the thread here. https://forums.moneysavingexpert.com/discussion/6426556/pension-credit-property#latest

p00hsticks

ElectricBeagle said:

Am I missing something else? 

Could it be that, as with the State Pension, the next PC payment will be made up of a mixture of days prior to 10th April at the  old rate and from 10th April at the new one ?
You usually have to wait until the subsequent pay period after the rise to get the full amount at the new rate 

ElectricBeagle

Hi p00hsticks

I had considered that but the amount is both lower that expected for a 10.1% increase as State Pension increased by that amount and also lower than what was the correct PC amount for a calculation done yesterday. About 20minutes ago I entered the old figures into the .Gov.UK website and the resulting amount was accurate and correct for the individuals PC as they would have been paid just Monday past. 

What you suggest could be right if it was the ‘partial’ week where it may be a little of both figures but in this case it is lower than both old and new figures.

I am assuming either Pension Credit does not increase by the same 10.1% or a different team updates the .Gov.UK website for the Pension Credit Calculator and it has not yet been updated?

poppy12345

ElectricBeagle said:

I am assuming either Pension Credit does not increase by the same 10.1%

That's not correct, as you can see by the figures in my comment that PC will also increase by 10.1%.

ElectricBeagle

Bob was paid weekly State Pension of £10 and also weekly on the same day £10 of Pension Credit. Bob stopped receiving his Pension Credit as he inherited some money and wasn’t entitled to receive Pension Credit. Bob then decided he wished to pay himself on a weekly basis a sum of money that was exactly the same amount or ‘equivalent’ to the sum of Pension Credit he used to receive. 

HillStreetBlues

ElectricBeagle said:

7th April 2023

Good morning all.

I’m trying to calculate how much Pension Credit equivalent a person should pay them selves.  They recently received PC and then it stopped for appropriate reasons. In the past I have used both the Pension Credit Calculator on the .Gov.UK website and Age UK PDF for 22/23 and was able to calculate the exact correct amount as they were previously paid by the state and it was simple to do without issue. I did it as recently as last week with the correct result. 

This morning I can find the new Age UK PDF for Pension Credit for 23/24 but when using the .Gov.UK website the PC amount it generates is lower than expected and also lower than what was accurate last week. I’ve quadruple checked the process and boxes ticked and amounts entered and still don’t get a figure that matches what was correct last week pre April 6th new Tax Year. I’ve also cross referenced entries and figures from what was accurate and printed out as the result with what is newly entered and still the amount is less. The individuals circumstances, savings and income has not altered since last week.

Questions:

Does Pension Credit increase at the same percentage (10.1%) as State Pension in the current 23/24 year?

Do you know if the .Gov.UK website is accurate, inaccurate or just slow catching up? 

Am I missing something else? 

Normally this is a simple exercise with an accurate result as expected. 

Presumably the state will already have had to make such calculations for Pensioners on PC early on in this year and already sent letters out to them? February or March seems to be typical time frame for letters to be sent out with new calculations so I would have thought the website would be updated at a similar time.

Thank you for your help and advice in advance.

The answer is,

The website won't be updated until the new rates come into force, so currently it's set at £182.60
As you are putting the new higher rate  of pension  then atm the pension credit will come out less.
Once the site has been update to the new rate of £201.05  then you will get the correct amount of PC

To show in example, A person getting £100  pension will get £82.60 a week
But put in new rate  now A person would get £110.10 pension   but the calculator would show PC of £72.50 (182.50-110.10)
Once update it will show PC of £90.95 (£201.05-110.10)

ElectricBeagle

HillStreetBlues said:

ElectricBeagle said:

7th April 2023

Good morning all.

I’m trying to calculate how much Pension Credit equivalent a person should pay them selves.  They recently received PC and then it stopped for appropriate reasons. In the past I have used both the Pension Credit Calculator on the .Gov.UK website and Age UK PDF for 22/23 and was able to calculate the exact correct amount as they were previously paid by the state and it was simple to do without issue. I did it as recently as last week with the correct result. 

This morning I can find the new Age UK PDF for Pension Credit for 23/24 but when using the .Gov.UK website the PC amount it generates is lower than expected and also lower than what was accurate last week. I’ve quadruple checked the process and boxes ticked and amounts entered and still don’t get a figure that matches what was correct last week pre April 6th new Tax Year. I’ve also cross referenced entries and figures from what was accurate and printed out as the result with what is newly entered and still the amount is less. The individuals circumstances, savings and income has not altered since last week.

Questions:

Does Pension Credit increase at the same percentage (10.1%) as State Pension in the current 23/24 year?

Do you know if the .Gov.UK website is accurate, inaccurate or just slow catching up? 

Am I missing something else? 

Normally this is a simple exercise with an accurate result as expected. 

Presumably the state will already have had to make such calculations for Pensioners on PC early on in this year and already sent letters out to them? February or March seems to be typical time frame for letters to be sent out with new calculations so I would have thought the website would be updated at a similar time.

Thank you for your help and advice in advance.

The answer is,

The website won't be updated until the new rates come into force, so currently it's set at £182.60
As you are putting the new higher rate  of pension  then atm the pension credit will come out less.
Once the site has been update to the new rate of £201.05  then you will get the correct amount of PC

To show in example, A person getting £100  pension will get £82.60 a week
But put in new rate  now A person would get £110.10 pension   but the calculator would show PC of £72.50 (182.50-110.10)
Once update it will show PC of £90.95 (£201.05-110.10)

Thanks HillStreetBlues

I was thinking it was that. I guess they can’t update the government .Gov.UK calculatir website until the actual new payment date takes effect yet at the same time the calculator Pension Credit services uses will have to be both accurate and useable ‘pre’ implementation date of the new payment so they can send letters out showing the new PC amount that will be paid at a future date. 

Hopefully next week the website will be updated to reflect the new change.

Thank you again HilStreetBlues