Pay for additional NI pension years or keep guaranteed pension credit?

ColibriGirl Posts: 4
Name Dropper First Post
edited 28 November 2023 at 2:03PM in Topping up your state pension

I am keen to help an elderly friend who has a very low income. She is 66 and currently receives guaranteed pension credit. In a recent letter it said her guaranteed pension credit was about £77 per month. She doesn't have any income apart from her Disability Living Allowance and she has been unemployed for decades.

I am wondering about paying for some of her missed NI pension years but I can see that guaranteed pension credit should give her an income of £201 per week and a full State Pension would be around £203 per week. I also can see online that guaranteed pension credit should give her other benefits like housing benefit, free TV licence and NHS dental care. I don't really understand why her income from guaranteed pension credit is so low in the letter she received. Anyway my real question is whether the money is best spent on giving her a standard State Pension or whether that will deprive her of other benefits too much. 

Any ideas would be very welcome!


  • molerat
    molerat Posts: 31,571
    Name Dropper Photogenic First Post First Anniversary
    In general topping up the SP if receiving PC is not good value as the loss of the add on benefits can be more than the pension increase received.  Exactly how much is their weekly pension amount and when did they reach SPA ?
  • Thank you for the questions and I will ask her for more letters to show me her precise pension amount. Yes I can see what you're saying about the loss of the add-on benefits. I think she reached statutory pension age in March 2023. Wondering how best to support her as the cost of living is so high, especially where we live (Southwark in London).
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