State Pension benefits in the UK: it is a taxable benefit, paid whatever your savings, but means-tested benefits count it as income.

Most people claim the State Pension alongside other help, and whether a given payment goes down, stays the same or opens the door to more depends on which benefit it is. Because each benefit treats a State Pension in its own way, talking to an FCA-authorised adviser lets your pension, income and claims be looked at together; this page's form requests that call at no charge.

Is the State Pension classed as a benefit?

Yes. The State Pension is a contributory social security benefit paid by DWP, built on National Insurance rather than on need. The old basic State Pension is named in the law on contributory benefits, which lists "retirement pensions of the following categories" and begins with Category A, payable by virtue of a person's own contributions (Social Security Contributions and Benefits Act 1992, section 20). The new State Pension, for people reaching State Pension age from 6 April 2016, is set up by Part 1 of the Pensions Act 2014, and section 2 makes entitlement depend on the number of qualifying years a person has.

That is why it is not means-tested. DWP's guide ties the new State Pension to the National Insurance record alone, bar a narrow exception for some wives and widows who opted for the old lower contribution rate, so what you earn, own or save does not change the amount. How the two types differ is on the new and basic State Pension compared.

It is also taxable. HMRC treats it as income, though nothing is deducted at source, so whether you pay anything depends on your total income for the year. Tax on the State Pension has the detail.

"Not means-tested" describes how the amount is worked out. It does not mean other benefits ignore it. The next sections go through which benefits look at it and which do not. The pension itself is on the State Pension explained, and is a pension a benefit covers workplace and private pensions.

Does the State Pension affect other benefits?

It depends on the benefit. Some count your State Pension as income, some cannot be paid in full next to it, some are for people under State Pension age, and some pay out the same however much pension you have.

BenefitWhat happens with a State Pension
Pension CreditState Pension counts as income, so it is part of the sum that decides any top-up
Housing Benefit and Council Tax ReductionBoth look at household income, which includes pensions
Universal CreditFor people under State Pension age; a State Pension in the household counts as income
Carer's AllowanceCannot be paid in full alongside the State Pension
New Style ESA and JSAFor people under State Pension age
Widowed Parent's AllowanceA new claim needs you to be under State Pension age
Attendance AllowanceNot means-tested, so your pension does not reduce it
PIPCan be paid at the same time as other benefits, apart from one named exception

Each row is explained below. The table gives the direction of each rule, not an amount; DWP publishes the current rates on GOV.UK.

Which benefits are reduced because you get the State Pension?

The rule that stops two overlapping payments being added together sits in the Social Security (Overlapping Benefits) Regulations 1979. Regulation 4(5) says that where one of the benefits is a contributory benefit and one is a non-contributory benefit, the non-contributory benefit "shall be adjusted by deducting from it the amount of the contributory benefit and only the balance, if any, shall be payable."

Carer's Allowance is the common case, because the two do not stack. A State Pension at or above the weekly Carer's Allowance rate leaves no Carer's Allowance to pay, and a smaller one is topped up by the difference. If your State Pension is above the Carer's Allowance rate and you get Pension Credit, GOV.UK's Carer's Allowance guide says your Pension Credit goes up instead. Carers in Scotland apply for Carer Support Payment rather than Carer's Allowance. The figures and the claim are on claiming the State Pension and Carer's Allowance together.

Some working-age benefits rarely sit alongside a State Pension at all. GOV.UK's eligibility pages for New Style Employment and Support Allowance and New Style Jobseeker's Allowance both say you must be under State Pension age. Widowed Parent's Allowance has been replaced by Bereavement Support Payment, and a new claim needs the claimant to be under State Pension age and the partner to have died before 6 April 2017. If you get one of these and are nearing State Pension age, an adviser will phone to explain, without charge, how the pair will interact; this page's brief form sets that up.

How does the State Pension count for Pension Credit, Housing Benefit and Council Tax Reduction?

It counts as income for all three, and this is where a modest State Pension can still open up extra help.

For Pension Credit, GOV.UK lists the State Pension among the income that is counted, along with other pensions, earnings and most social security benefits. If you have put off claiming, the amount you would be getting still counts. Pension Credit tops your weekly income up to a set level, so a larger State Pension means a smaller top-up, and for some people none. Who qualifies is on who gets Pension Credit, the amounts are on how much Pension Credit you could get, and tax on it is covered in whether Pension Credit is taxable.

Housing Benefit is worked out from your eligible rent and your household income, which includes benefits, pensions and savings. Council Tax Reduction is run by each council, and GOV.UK says household income for it includes savings, pensions and your partner's income. Because every council runs its own scheme, the same State Pension can lead to a different reduction in different areas. The link between Pension Credit and these two is on the extra help Pension Credit unlocks.

Some money is left out. GOV.UK says the following are not counted as income for Pension Credit: Attendance Allowance, Personal Independence Payment, Housing Benefit, Council Tax Reduction and the Christmas Bonus paid with the State Pension (see the State Pension Christmas Bonus). Savings have thresholds of their own, set out on how much you can earn or hold in savings with the State Pension.

It is worth checking whether a claim is open to you rather than assuming it is not: GOV.UK says income above the Pension Credit level might still leave you eligible where there is a disability, a caring role, savings or housing costs. To have your own figures checked, ask for an adviser to phone you using this page's quick form; it costs nothing. Applying for Pension Credit explains the claim itself.

What happens to Universal Credit when you or your partner reach State Pension age?

If you are single, Universal Credit stops being the benefit for you. GOV.UK's eligibility rules say you must be under State Pension age to claim, and the Welfare Reform Act 2012 sets the same condition: a claimant must not have "reached the qualifying age for state pension credit". Pension Credit and Housing Benefit are the benefits that open at State Pension age.

Couples are more complicated when one of you is older. GOV.UK says that if only one of you has reached State Pension age, you and your partner can still claim Universal Credit as a couple, and the claim stops when you both reach it. The older partner's State Pension is not ignored in the meantime: the Universal Credit Regulations 2013 list retirement pension income among a person's unearned income, which feeds into the award. How unearned income is deducted is shown on armed forces pensions and Universal Credit, which covers a different pension but the same method.

How the older partner's pension and the younger partner's income combine in one joint claim differs from household to household; for a free call about your own household's figures from an FCA-authorised adviser, complete the quick form on this page.

The other benefits have their own rules for these couples. Pension Credit asks for both partners to be past State Pension age, with an exception where one of them already receives the Housing Benefit open to pensioners. For Housing Benefit, a new claim is not open to someone who has reached State Pension age if the partner they live with has not, unless they had a claim as a couple before 15 May 2019. If you are getting Pension Credit, GOV.UK adds that it will stop if you or your partner make a claim for Universal Credit, and that you will usually be better off staying on Pension Credit.

Do Attendance Allowance and PIP go down if you get the State Pension?

No. Attendance Allowance is not means-tested, and GOV.UK says what you earn or how much you have in savings will not affect what you get. Regulation 4(2) of the 1979 overlapping-benefits rules also lists an attendance allowance among the payments its adjustment does not apply to.

Personal Independence Payment (PIP) works in a similar way. GOV.UK's PIP eligibility page names a single benefit that PIP cannot run alongside, Armed Forces Independence Payment, and adds that having a job or savings does not rule it out. The catch is age. If you are over State Pension age you cannot usually make a new PIP claim; GOV.UK points to Attendance Allowance instead, though you can make a new claim for PIP if you got PIP or Adult Disability Payment in the last 12 months. In Scotland, Pension Age Disability Payment replaces Attendance Allowance.

These payments can also lead to more help. GOV.UK says Attendance Allowance could mean extra Pension Credit, Housing Benefit or Council Tax Reduction, and its Pension Credit page lists an extra amount for severe disability for people on Attendance Allowance or the daily living part of PIP. The two are put side by side on Pension Credit and PIP.

Common worries about State Pension and benefit claims

What about a pension inherited from a late husband or wife?

That has its own page: is a widow's pension means-tested.

Does deferring my State Pension help my benefits?

Not for Pension Credit. GOV.UK says that if you have deferred your State Pension, the amount you would get is counted as income. Whether deferring suits you is a separate question, covered on should I defer my State Pension.

Does the Christmas Bonus affect my Pension Credit?

No. GOV.UK lists the Christmas Bonus among the payments not counted as income for Pension Credit.

Where can I check what I might claim?

The Pension Service helpline is 0800 99 1234 and GOV.UK links to independent, free benefits calculators; to talk your own case through with someone, this page's form arranges for an adviser to phone you, free.

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