Glossary · UK
What is Pension Credit Guarantee Element?
The main means-tested part of Pension Credit that tops up a pensioner's weekly income to a guaranteed minimum level, regardless of when they reached State Pension age.
Full Definition
The Guarantee Element (often just called Guarantee Credit) is the main, still-open part of Pension Credit, topping up a pensioner's weekly income to a guaranteed minimum amount if it falls short, regardless of whether they reached State Pension age before or after 6 April 2016 -- unlike the Savings Credit element, which was closed to new claimants from that date. The calculation compares the claimant's (or couple's) actual weekly income against a standard minimum guarantee amount, which is higher for couples than for single claimants, and tops up the shortfall pound for pound, with additional premiums available for severe disability, being a carer, or having certain housing costs such as ground rent or service charges that Housing Benefit does not otherwise cover. Because receiving even a small amount of the Guarantee Element acts as a "passport" to a wide range of other help -- including full Housing Benefit or the housing element of Universal Credit for those of a mixed-age couple, a free TV licence for over-75s, help with NHS costs, and Cold Weather Payments -- claiming Pension Credit can be worth significantly more to a household than the headline weekly top-up amount alone suggests, which is why the Guarantee Element in particular has been the focus of repeated government take-up campaigns aimed at the substantial number of eligible pensioners who have never claimed it. Pension income, most savings above a disregarded amount, and other benefits are all taken into account in the means test, though the State Pension itself, and certain other specific income sources, are treated in particular ways set out in the detailed Pension Credit rules.