Lisa Bachelor , Sarah Crown and Margaret Hughes. Tuesday 8 July The idea behind tax credits is that they will help those individuals who need money most to get it, by way of a means-tested system. The working families tax credit, for example, which has already been launched, aims to help low- to middle-income families with children.

The pension credit will have two components - a "guarantee credit", for which everyone will be eligible upon turning 60, and a "savings credit" which kicks in at Some people will be eligible for both while others will just receive the savings credit.

Pension Credit: what is it, am I eligible and how do I claim it

The aim of the savings credit is to reward those over the age of 65 who already have additional income either through a savings account or a private pension above the basic state pension. What will happen to the minimum income guarantee the means-tested income support from which some pensioners currently benefit? The minimum income guarantee MIG will effectively be replaced by the guarantee credit from October.

How much income could I get from a £, pension pot? - Money To The Masses

You will not be entitled to the guarantee credit, but if you are over 65 you may receive some savings credit. So apart from being 65 with some savings how do I qualify for the savings credit?

And here's how we'll try to simplify this as much as possible: Your total pension credit will work out like this: All sounds very complicated. Is there anything else to make it any more confusing?

Those with severe disabilities and those who are carers will have a higher guarantee credit limit on which to base their calculations. The DWP is writing to every pensioner to explain the credit, but you may not hear anything from them until October Although you should try to put in your claim before this, you will be entitled to backdated payments from October this year if you don't manage to.

A very helpful factsheet is available from Age Concern. Alternatively, you can call their free information line on , or visit your local branch. International edition switch to the UK edition switch to the US edition switch to the Australia edition.

The Guardian - Back to home. The pension credit is a nightmare to understand. Even the Department for Work and Pensions seemed uncertain about how it worked when we spoke to them.

How to get a forecast of how much state pension you will get - BT

We've put together our own accurate and understandable we hope guide to exactly what the credit is and and who is entitled to it. Let us know what you think on our Feedback page.

What is a tax credit? How does the pension credit work? And what happens if your income per week is over the guarantee credit level? And my total pension credit will be?

Pension Credit calculator - urisofod.web.fc2.com

When is the pension tax credit being introduced? Where can I find out more? The Guardian back to top.