When pension Credit is introduced in October, the biggest gainers will not be those with the lowest incomes, as this selection of letters shows.
Q You recently told someone with a weekly income of £102.10 that they would get an extra £5 under Pension Credit, but someone else with £116.01 would gain £8. How can this be so?
A The idea behind Pension Credit is not just to bring everyone's income up to the same level. In addition, it pays extra by giving a reward to those who have made provision for their retirement through savings and pensions.
Q I have a basic State Retirement Pension of £77.45 made up to £102.10 by Income Support. What will I gain from the October changes?
A Nothing I am afraid. The key to the extra cash is your personal income. This means income in excess of the basic pension of £77.45. As you have none, you get no reward.
Q My State Pension is £80.33, made up to £101.20 by Income Support. Social Security tell me I will only get an extra £1.73 in October, which is nothing like what you have been telling people they will get. How come I get so little?
A Your personal income is only £2.88, the excess over £77.45 basic pension. Under Pension Credit rules, you get 60 per cent of that excess from October. Just £1.73.
Q My State Pension of £80.45 is my only income but, as I have savings of £14,500, I have never been able to get Income Support. Will I do any better under Pension Credit?
A Yes. Your savings will be treated as income of £17-a-week, making your total income £97.45. Firstly, you will get £4.65-a-week to bring you up to £102.10. But your personal income is £20 - so 60 per cent of this, or £12, will be added, giving you £16.65 in all.
Q My State Pension is £87.28-a-week and my wife's is £46.35. My works pension is £95-a-month and we have hardly any savings. Will we be due any Pension Credit in October?
A Under current rules you qualify for next to nothing because your income is about the same as the Income Support level of £155.80 a week. Those in your situation are the big gainers from Pension Credit, getting the maximum, which for a couple is £19.20-a-week.
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