Pension credit,

casper0326

Hi, I am looking for someone to explain to me (as I understand it), the pension credit scheme. I have recently retired and worked for fifty years paying all necessary N.I. contributions to obtain the full state pension. What I cannot understand is why someone who has not contributed to the full qualifying period and then receives a reduced amount of pension can then apply for pension credit which brings them very close to full state pension, less by only a few pounds. As they are on pension credit they can then apply for a range of benefits which can give them 1000s of pounds more than I am able to get being on the full pension? How can this be considered a fair practice or have I misunderstood the concept?

Marcon

As they are on pension credit they can then apply for a range of benefits which can give them 1000s of pounds more than I am able to get being on the full pension? How can this be considered a fair practice or have I misunderstood the concept?

You've understood it correctly. The 'explanation' is simply that's how the system works. https://www.gov.uk/pension-credit/eligibility

Fair? I can understand exactly why people feel cheesed off by things as they stand.

Going forward fewer people are expected to qualify for pension credit as more retirees are likely to have income high enough to rule them out of claiming it, partly because auto enrolment means more people will have private pension provision and partly because more people will qualify for a full state pension.

sammyjammy

Means tested benefits have a cut off, if you close to it but miss this cut off it can seem unfair. Other benefits are passported if someone is receiving pension credit but there is nothing stopping you making a claim for council tax/rent support with your council if you feel you might qualify on your earnings.

There are also cases where people can be in receipt of PC alongside a full state pension.

You should check a benefits calculator.

Silvertabby

As you have worked for 50 years, do you now have other income in the form of occupational or private pensions? And/or savings over £16K?

If so, you still wouldn't have qualified for means tested pension credit, even if your State pension was well below the single tier pension amount.

Yes, there may be people in the situation you describe - full single tier pension but no other income/savings - who will see the system as 'unfair'. But making all of the people happy all of the time is sadly impossible.

DE_612183

unfair? possibly…

But would you prefer to see people struggle to live just because it might make you feel better?

Keep_pedalling

No one should aspire to live their retirement years living on the absolute minimum income which is what people on PC get. If you only have the full state pension to live on then that is entirely down to you for failing to take advantage of the private / company pensions you could have contributed to over in 50 years of full employment.

casper0326

Keep_pedalling

There was not a lot of information and private pensions were not a common thing during a lot of my working life. And I do have other pension income, admittedly not a lot. That is not the point that I was making. the point is why someone who chooses not to work to contribute to the country should be given more than someone who as contributed.

MallyGirl

Not everyone chooses to not work

Marcon

the point is why someone who chooses not to work to contribute to the country should be given more than someone who as contributed.

How are you going to differentiate between someone who has chosen not to work (although one wonders what they lived on…) and someone who has been unable to work, or who hasn't 'worked' because they have been a stay at home parent or carer?

Pollycat

You're lucky that you posted on this board instead of the more appropriate Benefits and Tax Credits as your post would be removed PDQ.

Pension Credit is a benefit.

As a poster said above 'That's the way it is'.

Someone could just as easily (and there have been such posts) that they are just a few pennies above the PC limit and that is unfair.

So is life…