Frequently Asked Questions

Please select from one of the following groups or use the search facility

What is the difference between Guarantee Pension Credit (GPC) and Savings Pension Credit (SPC)?

GPC is a conventional means-tested benefit for pensioners available to claimants and their partners where at least one has reached the qualifying age for State Pension Credit. Claimants are awarded an initial allowance as either single people or couples, which may be increased if they have caring responsibilities, receive certain disability benefits or have housing costs which may be met though PC (usually, help with mortgage interest costs). This figure, their "applicable amount" is then reduced by their income, such as state and other pensions, and deemed income from savings. The resulting sum is any GPC payable.

SPC is an unconventional means-tested benefit for pensioners available to claimants and their partners where at least one has reached the qualifying age of 66. It tries to reward those with low incomes for making provision for their retirement, by paying those whose incomes in retirement are low but nevertheless higher than a qualifying level, which is very similar to the basic rate of state retirement pension. Any excess above that level is subject to a complex calculation, the effect of which is to result in a rising award of SPC as such income rises, until it reach a low set maximum (currently £17.01 per week for a single person, £19.04 for a couple), at which point the amount payable as SPC starts to reduce before ending altogether.