Hi

Hi there. I'll try to make this as short as possible and would be grateful for any help or advice you can give me. Long story short: I am coming up to pension age and because I worked abroad (outside the EU) for many years my pension is very little. I am on ESA and I applied for my pension along with pension credit since I can't live on the amount I'm entitled to. I got two letters, one from the pension service and one from ESA. The ESA one said that from 6th of May (my state pension age) I would receive a certain amount a week. When I added up the pension and the ESA amount it comes exactly to the amount I would get if I got the full state pension. I am confused. I thought I would get my ESA stopped once I reached State pension age? Could it be that this is how they will top up my pension- i.e. pension credit? I would be most grateful for any advice.

Hi moonshine

Pension Credit is an income-related benefit made up of 2 parts - Guarantee Credit and Savings Credit. Guarantee Credit tops up your weekly income if it’s below £173.75 (for single people).

Since 15 May 2019 Pension Credits rules changed and is now based on the youngest of a mixed aged couple. www.gov.uk/pension-credit/eligibility

You are correct when you say your ESA will stop when your reach State Pension age. Pension Credit is a 'top up' providing you meet the qualifying conditions.

Gary