Pension Credit and housing costs: a guide for older private tenants

Are you of state pension age, renting privately, on a low income? Pension Credit may help with your housing costs. Here is how it works for older private tenants, how it fits with other housing support, and what to do if your rent is not fully covered.

What is Pension Credit?

Pension Credit is a means-tested benefit for people who have reached state pension age and have a low income. It tops your weekly income up to a minimum level. There are two parts:

• Guarantee Credit: tops your weekly income up to the standard minimum guarantee
• Savings Credit: for some people who reached state pension age before 6 April 2016 and have some savings or a second pension

Pension Credit is separate from the state pension. You can get both at once.

Can Pension Credit help with rent?

Pension Credit itself has no rent part. But getting it changes your housing support in a big way:

• It passports you to full Housing Benefit. If you get Guarantee Credit, you qualify for Housing Benefit at the full rate for your area (the Local Housing Allowance rate for private tenants), whatever your savings. Normally savings over £16,000 cut your Housing Benefit; Guarantee Credit switches that rule off.

• It passports you to Council Tax Reduction. Pension Credit usually brings a big cut in your council tax.

• It can open other support, including free NHS dental treatment, Cold Weather Payments, and sometimes the Warm Home Discount.

What is the Local Housing Allowance (LHA)?

The LHA is the rate used to work out Housing Benefit for private renters. It is based on the cheaper end of local rents.

If your rent is higher than the LHA rate for your area and household size, even full Housing Benefit may not cover it all. That gap is called a shortfall.

What can I do if my housing costs are not fully covered?

If your rent is more than Housing Benefit covers, you can:

• Apply for a Discretionary Housing Payment from your council, to help with a temporary shortfall
• Talk to your landlord. Some will accept a little less rent to keep a reliable tenant.
• Check the sums. Benefit errors happen. Citizens Advice or a local welfare rights service can check your entitlement.
• Think about moving to a cheaper home, if the shortfall will not go away

Is Pension Credit the same as Universal Credit?

No. Pension Credit is only for people who have reached state pension age. Working-age people, and mixed-age couples in some situations, get Universal Credit instead. If you are over state pension age, you should not be on Universal Credit for your housing costs. Check you are on the right benefit.

Are there people eligible for Pension Credit who have not claimed it?

Yes, many. Pension Credit goes unclaimed by hundreds of thousands of older people who qualify. If you are over state pension age with a low income, check your entitlement. It can lift your whole income and unlock other support, including help with housing costs.

Does my right to a maintained home depend on my income?

No. Your landlord must keep the property in repair whatever your income or benefits. If your rented home has damp, mould, broken heating, or structural problems your landlord has not fixed, you can bring a disrepair claim however your rent is paid.

When should I contact Support for Tenants?

If you are an older tenant in a privately rented home with disrepair your landlord has not fixed, call us. Your age, income, and benefits do not affect your right to a maintained home.

Call us on 0800 030 4669. No upfront cost. You only pay if you win, and the fee comes out of the compensation, not your pocket. If you don't win, you pay nothing.

Sources

• State Pension Credit Act 2002 (legislation.gov.uk)
• Pension Credit (GOV.UK)

Related articles

• Local Housing Allowance shortfall, what to do when your benefit does not cover your rent
• Attendance Allowance, what it is and how it helps
• Discretionary Housing Payment, what it is and how to apply