Pension credit advice

aaad1

Hi all,

I am asking on behalf of my mum as she doesn't know much about this at all.
She has 12 years of National Insurance (NI) contribution, she doesn't work due to health reasons (not on any benefits for that, won't go into details due to various reasons).

She will be applying for state pension in a few years time.
12 years of NI is equivalent of approx. £100/week based on her NI account.
If we fill all the gaps (7 gaps - deadline till April 2025) and all future NI contributions, it will only bring it to around £170/week.

It is quite a large chunk of money (many thousands of pounds) to fill all the gaps.
If she doesn't fill and just apply for the pension credit, what are the possibility of securing it? Is it normally quite a difficult to get hold of the top up to around £218 I think?
Anyone aware of any stories where they were rejects and what for?

Many thanks

Baldytyke88

Have you checked if she is eligible to get free NI credits?

If you’re a parent or carer of a child under 12.
You should automatically get NI credits if you claim Child Benefit.

https://www.gov.uk/government/publications/national-insurance-credits-for-parents-and-carers-cf411a

https://www.gov.uk/national-insurance-credits

8dayweek

I know you’ve said you don’t want to go into detail about why she’s not currently in receipt of any benefits etc but it’s perhaps worth pointing out that pension credit is somewhat of a means-tested benefit (not quite in the same way as working-age benefits), therefore if that is a factor / reason for no benefits now it may also be an issue when she reaches pension-age.  

aaad1

8dayweek said:

I know you’ve said you don’t want to go into detail about why she’s not currently in receipt of any benefits etc but it’s perhaps worth pointing out that pension credit is somewhat of a means-tested benefit (not quite in the same way as working-age benefits), therefore if that is a factor / reason for no benefits now it may also be an issue when she reaches pension-age.  

I understand that pension credit is means tested and based on the current situation and reading the eligibility, I think she can apply. There is also the other side of me thinking, what if they do say no or want to know how other people experienced the application process and had any issues.

No benefits now is more related to her health conditions doesn't qualify. I thought Pension Credit only looks into your financial income at state pension age? Rather than what benefits are you on at the time?

aaad1

Baldytyke88 said:

Have you checked if she is eligible to get free NI credits?

If you’re a parent or carer of a child under 12.
You should automatically get NI credits if you claim Child Benefit.

https://www.gov.uk/government/publications/national-insurance-credits-for-parents-and-carers-cf411a

https://www.gov.uk/national-insurance-credits

As far as I'm aware, I don't think she can get any NI credit.

8dayweek

aaad1 said:

8dayweek said:

I know you’ve said you don’t want to go into detail about why she’s not currently in receipt of any benefits etc but it’s perhaps worth pointing out that pension credit is somewhat of a means-tested benefit (not quite in the same way as working-age benefits), therefore if that is a factor / reason for no benefits now it may also be an issue when she reaches pension-age.  

I understand that pension credit is means tested and based on the current situation and reading the eligibility, I think she can apply. There is also the other side of me thinking, what if they do say no or want to know how other people experienced the application process and had any issues.

No benefits now is more related to her health conditions doesn't qualify. I thought Pension Credit only looks into your financial income at state pension age? Rather than what benefits are you on at the time?

Yes and no to the last sentence - for example being in receipt of PIP (which would have to be awarded pre-Pension age) or AA (which would have to be awarded post-Pension age) can entitle you to more Pension Credit. 

I wouldn’t like to comment on the benefit of filling gaps in NI record - for some it can be a no brainer but for others it would elicit very little difference. 

Have a look at the basic conditions of entitlement for PC… (77031 onwards)

https://assets.publishing.service.gov.uk/media/66867d9f899a6f92e5d9ccf7/dmgch77.pdf

I’ve seen rejections before on grounds of HRT (for example, people having a no recourse to public funds restriction). 

Spoonie_Turtle

Is she single or does she live with a partner?  That will be the largest determining factor as to whether she'll likely qualify for Pension Credit.

What is her current source of income (just for some context for her situation)?

Baldytyke88

aaad1 said:

As far as I'm aware, I don't think she can get any NI credit.

If she was a mother or grandmother looking after children, then she would qualify?

badmemory

So an extra £70 per week for the cost of around £6k.  Payback time around 2 years unless some of the figures are incorrect which I think they must be.