Moving from pension credit to state pension

captainhaddock

Hi, just wanting to know anyone's experience when pension credit ends and state pension starts.

The situation at the moment is my partner claims the old state pension - pension credit is paid for me as the younger partner under the old rules, in jan 2026 I turn 66 and can claim the new state pension, I understand that we can continue to claim pension credit or claim my pension, ideally I would prefer the stress free way and stay as we are,but it would come at a cost of around £30 per week according to a benefits calculation site.

Does anyone have any idea how the process goes, is the housing benefit and council tax automatically adjusted at the point of the change to new state pension? I'm also assuming that pension credit will know of the changes - I'm a bit of a worrier and the thoughts of change keep me awake at night - just need a bit of reassurance as to how things normally go - many thanks for reading.  

badmemory

I will be honest & say whilst I don't actually know I am sure I read somewhere that if you claim pension credit when able to take your state pension then they consider that you are in receipt of that state pension amount.

Rubyroobs

There was a recent post on here where the posters Pension credit was suspended because they hadn't claimed their state pension so I'm sure you do need to claim your state pension if you are eligible. Once you know how much your state pension will be you will then need to update housing benefit and council tax . If you are no longer eligible for Pension credit then you will lose all those perks that come with Pension credit like free dental and optical care, all rent and council tax covered etc.

Grumpy_chap

badmemory said:

if you claim pension credit when able to take your state pension then they consider that you are in receipt of that state pension amount.

Rubyroobs said:

There was a recent post on here where the posters Pension credit was suspended because they hadn't claimed their state pension so I'm sure you do need to claim your state pension if you are eligible. 

While I do not know the rules, that seems entirely logical.
PC is to provide a basic income for those without pension income.  
It would seem illogical that an individual could chose to defer taking SP (so it is higher in the future) and make up the deficit in the mean time by taking PC.

Newcad

Once over State Pension Age then any unclaimed pension (State or Private pension) is counted as being "Notional Income" for income related benefits.

Pension Credit is an Income Related benefit so that applies.

"Notional Income" means that whether you take the money (the pension) that you are entitled to or not the Income Related benefit can calculate your income as if you had and deduct it from your IR benefit entitlement.

If you don't take State Pension then Pension Credit will assume that you have taken it and deduct it from your PC entitlement.

Which means that if it's more than PC is paying then you are no longer entitled to Pension Credit and so PC will stop altogether.

That also has the knock on that other things that having PC entitles you to also end.

That lack of 'passporting' may mean that Housing Benefit will be reduced and you may have to pay some Council Tax. (As well as affecting qualifying for vatious other things that depend on your having PC).

It's a know 'cliff edge' situation that can mean no longer being entitled to Pension Credit can leave you worse off financially -but unfortunately it is what it is.

captainhaddock

Many thanks for the replies,that makes the decision to claim the state pension very easy - just hoping things will go smoothly when the time comes - I guess the claim invitation will be arriving in the post soon 

Newcad

Hope it's not  too bad for you.

I myself reach State Pension Age in Feb 2026, so my UC ends and because I'll get full state pension I won't get any Pension Credit.

Which in turn means that I'll not get full Housing Costs like I currently do because of UC, and I'll have to pay some Counci Tax for the first time in years (for various reasons I've not had to pay any CT since 1999).

I should still be better off overall though.

pmduk

captainhaddock said:

Many thanks for the replies,that makes the decision to claim the state pension very easy - just hoping things will go smoothly when the time comes - I guess the claim invitation will be arriving in the post soon 

My state pension claim went very smoothly indeed, 12 days from application to receiving confirmation of dates and amounts. If only Civil Service pensions were as efficient.

SnowWhiterThanWhite

captainhaddock said:

Many thanks for the replies,that makes the decision to claim the state pension very easy - just hoping things will go smoothly when the time comes - I guess the claim invitation will be arriving in the post soon 

My Brother will reach SPA in August 2028. He recently received a letter reminding him of this. I'm sure the letter also said he would receive a formal notification 3 months before his 67th birthday ie, May 2028.
If you haven't received any letters as yet, I would just check DWP have your current address