Pension Credit

kimbettylloyd

My state pension started on my birthday last week, I am on the new pension of 876.76. Before retirement age I was eligable for Universal Credit because I'm on a low income and this wasn't taxed as under the threshold. I was flabbergasted to discover that I am not eligable for pension credit as the new pension is £20 more than the £201 threshold. So I have had my UW taken away and will be made to pay tax on my earnings. This is completely unfair and I am going to be in major financial difficulties because the Government have forced me into poverty. Is there anything that can be done to raise the Pension Credit threshold in line with the new pension payments? Just to add I have no savings, private pension or any other assesets

molerat

Is there anything that can be done to raise the Pension Credit threshold in line with the new pension payments?

It has been.  Pension credit is set to just below the new pension amount of £203.85.

TadleyBaggie

Assuming you have no other income and you have a personal allowance of £12,570, then no tax will be payable. Your annual income will be around £11397, and so below the normal personal allowance.

If you are getting £876.76 every 4 weeks, you are getting more than the "new" pension amount (£815.40).

kimbettylloyd

My pension works out to £219.19, the Government have set it as this and is just over the set is stone pension credit threshold. What I am trying to ask is why I'm not eligable as I was on UC before and now I've had to take  huge loss incoming money? 

molerat

https://www.ageuk.org.uk/information-advice/money-legal/benefits-entitlements/

TadleyBaggie

As has been said, the new standard pension is £203.85, and pension credit is designed to help people who are on a smaller pension and bring them up to that level. Since your amount is over the new standard pension you naturally would not be eligible  for pension credit.

How much were you getting on UC before your state pension started paying out?

kimbettylloyd

OK I understand that, but it's not fair that I am now not allowed to have the benefits I was entitled to that you get when you are on UC & pension credit. I am on a low income and am leaving work next week due to health reasons. What I am trying to understand is not the actual money you get on Pension Credit it's the other support that goes with it i.e dental/eye care etc, energy help how are people supposed to afford that after rent/bills etc. You are not entitled to any support at all if you are not on Pension Credit

TadleyBaggie

Nothing is going to change regarding pension credit, based on your pension income. Write to tour MP but realistically I can't see the government changing this.

I think you need to move this over to the benefits board, perhaps they may some ideas on how to boost your income.

xylophone

My pension works out to £219.19,

You state pension is not only above the standard rate of Guarantee Pension Credit ( £201.05) but is also above the standard rate of New State Pension (£203.85).

If the state pension were your only income, you would not be liable for tax as your income would be below your Personal Allowance.

However, if you have earnings in addition to your state pension and the total amount of income is over your Personal Allowance (plus any other allowance you may have), then naturally (like everybody else) you will pay tax.

kimbettylloyd

Thank you for your informative comments for which I am so extremely grateful for, I am so fortunate to have my income reduced to the overwhelming amount of £876 per month which of course will cover my rent, massive increase in cost of living etc. Now I am the poverty line I look forward to being evicted as well having to being able to afford to drive, of course I can always apply for a bus pass but no doubt be refused as not on Pension Credit! 

TadleyBaggie

Bus passes in England are not means tested, everyone over SPA is eligible.

Also you will also be eligible for winter fuel allowance, again not means tested.