Pension Credit is a means-tested government benefit. It helps with day-to-day living expenses if you’re over State Pension age and on a low income.
Currently, almost 1.4 million pensioners in Britain receive Pension Credit. If you receive Pension Credit, can it be stopped? Let’s look at the circumstances under which this could happen.
When Can Pension Credit Be Stopped?
You do not report a change in personal or financial circumstances
If you don’t report changes to the Pension Service about your personal or financial circumstances immediately, that could affect your Pension Credit entitlement. Consequently, the Pension Service may reduce or stop your payments.
Conversely, some changes in circumstances may increase the amount of Pension Credit that you may receive.
Will Pension Credit Payments be Stopped if You leave Great Britain?
The Pensions Service may pay you Pension Credit for up to 4 weeks if you leave Great Britain on a temporary basis.
However, if you leave Great Britain for any longer than 4 weeks, you must meet special conditions to avoid the Pension Service stopping your payments.
If your absence is related to a death, they may pay you Pension Credit for up to 8 weeks.
If it is solely in relation to medical treatment or medically approved convalescence, they may pay Pension Credit for up to 26 weeks. Source: Pension Credit, Gov.UK
To be on the safe side, always inform the Pension Service you are leaving Great Britain before you go away:
- for any reason at all
- even for a short time
- even if it’s only to go to Northern Ireland, the Isle of Man, or the Channel Islands
You start living with a partner who is below the UK State Pension Age
It’s important to note that when your partner reaches State Pension age you are entitled to start receiving Pension Credit again.
Living with a Partner below State Pension Age before 15 May 2019
However, if you were receiving Pension Credit and living with a partner below the State Pension Age before 15 May 2019, you’ll continue to receive it unless your circumstances change, and you stop being eligible.
Once you and your partner become eligible again, the Pension Service will re-start paying it to you.
You or your partner receive Universal Credit
If you have reached the State Pension age and can’t get Pension Credit because your partner is under the State Pension age, you may be eligible to receive universal credit.
Therefore, if either you or your partner starts receiving Universal Credit from the government, you will stop being entitled to Pension Credit.
You Fraudulently Claim for Pension Credit
If you fraudulently claim Pension Credit by providing incorrect information in the application form, you may be;
- taken to court
- have to pay a penalty
- the Pension Credit payments will stop.
Pension Credit and Changes to your Personal Circumstances
You need to report a change of personal circumstances which can include:
- moving to a new address
- starting to live with a new partner.
- stopping living with your partner
- the death of a partner whom you named in your claim
- starting work
- stopping work
- going into a hospital
- moving into a care home
- people moving into your home.
- people moving out of your home.
- changing your name
- changing your bank account
- changes to your Post Office card account
- leaving England, Scotland, and Wales for any period (e.g., going on holiday)
- you start looking after a child or young person under the age of 20.
- you stop looking after a child or young person under the age of 20.
- if you’re not a British citizen, any changes to your immigration status.
Source: Gov.UK
Pension Credit and Changes to your Financial Circumstances
You also need to report if your financial circumstances change. This can include changes to:
- housing costs, e.g., ground rent or service charges
- new benefits that anyone living in your home gets.
- benefits being stopped for anyone living in your home.
- occupational or personal pensions. This includes if you start to receive income from a new pension or withdraw a lump sum from your pension pot.
- other income, e.g., foreign pensions or Working Tax Credits
- savings, investments, or property
Source: Gov.UK
If You Have an Assessed Income Period (AIP)
If you have an AIP, it is a period when you are not obliged to report changes to your pensions, savings, and investments to the Pension Service. However, you must report all changes to your personal circumstances. Your Pension Credit award letter will inform you whether you have an AIP.
If you’re 75 years old or older and started receiving Pension Credit before 6 April 2016, you may have an AIP.
Your AIP ends if your household circumstances change e.g., you move to a care home and you will get a letter confirming this.
From this point on, you are obliged to report all changes to your circumstances, including changes to your pensions, savings, or investments.
Pension Credit – How to Report a Change of Circumstances
You can report a change by phone.
Pension Service helpline
Telephone: 0800 731 0469
Textphone: 0800 169 0133
Relay UK (if you cannot hear or speak on the phone): 18001 then 0800 731 0469
British Sign Language (BSL) video relay service if you’re on a computer. This is how to use the service on mobile or tablet.
You can report a change by post. The address will be on letters you receive from the government about your pension credit.
In Summary – Comply with the Rules
Given the average claim for Pension Credit is £3,500 per year, it can really help with your day-to-day living expenses.
However, you do need to be aware of and comply with the rules and regulations around Pension Credit payments to ensure you continue to be paid. This is also to ensure you avoid having to pay penalties and avoid any potential court action.
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