State pension: Is Pension Credit the same as state pension?

The new state pension was introduced in 2016. The new state pension replaced the basic state pension for those retiring after April 6 that year.

What is the state pension?

The new full pension is presently worth £168.60 per week but in April 2020 the state pension is due to increase by 3.9 percent to £175.20 per week.

The older basic full state pension will also be increased to a weekly income of £134.25.

Those who have made 35 years of National Insurance contributions will receive the new full state pension.


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For the older, basic state pension, you need 30 years of qualifying years to claim the full amount.

However, your prior working history may mean you’re not entitled to the full state pension.

This is because for both the new and state pension, you will receive a percentage of the full state pension depending on the number of your National Insurance contributions.

You’ll usually need to have made a minimum of 10 years of National Insurance contributions to be entitled to any new state pension.

Is Pension Credit the same as the state pension?

You may be able to claim Pension Credit when you reach state pension age, but it’s not the same thing as the state pension.

You may be eligible for Pension Credit if your weekly income is below a certain amount and needs boosting.

Paul Carney, partner and pension expert at national law firm Shoosmiths, told “The Pension Credit is an income related benefit which is paid in accordance with a person’s or couple’s income.


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“It’s paid in two parts; a guarantee credit and a savings credit.

“The former is intended to supplement an individual’s weekly income if it falls below £167.35 for a single person or £255.25 for a couple.

“The latter is an additional payment for individuals who have saved something towards their retirement through, for instance, a pension plan.

“Depending on your circumstances, you can be paid up to an additional £13.73 per week for a single person and £15.35 for a couple, through the savings credit.

“To be eligible for the Pension Credit, you need to have reached state pension age.

“So, if you have not reached it or if you have but have deferred receipt of the state pension, you are not eligible, this also applies to not being self-employed and not owning two or more properties.

“By elimination, this means that you can still be eligible if you own your home and/or are in employment or in receipt of an income, such as a pension.

“As indicated, the credit is determined with reference to your income, so it doesn’t follow that you will be paid the credit irrespective of how much you are being paid.”

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