State Schemes

Question 1

Q: How is the State Pension determined for individuals who reached their State Pension Age (SPA) before 6 April 2016?

Answer 1

A: Individuals who reached their SPA before 6 April 2016 receive a State Pension based on the pre-6 April 2016 rules, comprising of a Basic State Pension (BSP) and possibly an Additional State Pension.

Question 2

Q: Between 6 April 2010 and 6 April 2016, what were the qualifications for receiving the full Basic State Pension (BSP) or a Category A pension?

Answer 2

A: Individuals qualified for the full BSP or a Category A pension if they had at least 30 ‘qualifying years’.

Question 3

Q: Who can claim a ‘Category B’ pension and under what conditions?

Answer 3

A: A dependant, which may be a husband, wife, or civil partner, who reached SPA with less than 18 qualifying years, being entitled to less than 60% of the full BSP in their own right, may have been able to claim a ‘Category B’ pension.

Question 4

Q: What does eligibility to the Category B State Pension depend on?

Answer 4

A: Eligibility to the Category B State Pension is dependent upon the qualifying years achieved by the individual’s spouse or civil partner.

Question 5

Q: What components could the Additional State Pension include for individuals who reached their SPA before 6 April 2016?

Answer 5

A: It could include the Graduated Retirement Benefit (GRB) accrued between 6 April 1961 and 5 April 1975, the State Earnings Related Pension Scheme (SERPS) accrued between 6 April 1978 and 5 April 2002, and the State Second Pension (S2P) accrued between 6 April 2002 and 5 April 2016.

Question 6

Q: How is the State Pension determined for anyone who reaches their SPA on or after 6 April 2016?

Answer 6

A: Individuals who reach their SPA on or after 6 April 2016 receive the new State Pension.

Question 7

Q: How many qualifying years do individuals need to receive any State Pension, and how many to receive a full new State Pension, after 6 April 2016?

Answer 7

A: Individuals need a minimum of ten qualifying years to receive any State Pension and at least 35 qualifying years to obtain a full new State Pension.

Question 8

Q: How is the starting amount for the State Pension calculated for individuals who had not reached their SPA on 6 April 2016?

Answer 8

A: It is calculated as at 5 April 2016 and is the higher of either their entitlement under the pre-6 April 2016 State Pension rules or their entitlement under the new State Pension, as if the new State Pension had been in place at the start of their working life.

Question 9

Q: What is a protected payment in the context of the State Pension?

Answer 9

A: When an individual’s starting amount is higher than the full amount of the new State Pension in 2016/17, the difference between their starting amount and the new State Pension is called their protected payment.

Question 10

Q: Why does the Government issue new State Pension forecasts, and who can benefit from them?

Answer 10

A: The Government issues new State Pension forecasts to help individuals understand whether paying Class 3 NICs would benefit them and for those who have been contracted out to understand how much ‘adjustment’ has been made in respect of this.

Question 11

Q: How is entitlement to the new State Pension accumulated for employees and the self-employed?

Answer 11

A: Entitlement to the new State Pension is accumulated through Class 1 NICs for employees and Class 2 NICs for the self-employed.

Question 12

Q: Under what conditions can an individual receive credits towards their Class 1 or Class 3 NIC record?

Answer 12

A: An individual may receive credits towards their Class 1 or Class 3 NIC record if they satisfy certain conditions.

Question 13

Q: What are Class 3 NICs and who can benefit from them?

Answer 13

A: Class 3 NICs are voluntary and can be paid by those with an inadequate NIC record, allowing the individual to increase their entitlement to the new State Pension or to the Basic State Pension for those who reached their SPA prior to 6 April 2016.

Question 14

Q: By what measure are the new State Pension and the Basic State Pension increased each year?

Answer 14

A: They are increased by the higher of earnings, measured by NAE, prices, and 2.5%, referred to as the ‘triple lock’.

Question 15

Q: How are increases in other State Pension benefits (not including the New State Pension) and the revaluation of protected payments determined?

Answer 15

A: Increases in other State Pension benefits like GRB, SERPs, S2P and the additional pension purchased through Class 3A NICs, as well as the revaluation of protected payments, are based on the change in the Consumer Price Index (CPI). They do not benefit from the triple lock.

Question 16

Q: Can State Pension be deferred under both the pre-6 April 2016 and post-6 April 2016 rules?

Answer 16

A: Yes, State Pension can be deferred under both the pre-6 April 2016 and post-6 April 2016 rules.

Question 17

Q: What options are available for those who reached SPA before 6 April 2016 when deferring State Pension, and what about those reaching SPA on or after 6 April 2016?

Answer 17

A: Those who reached SPA before 6 April 2016 can defer for an increased income or a lump sum, whereas those who reach SPA on or after 6 April 2016 cannot defer for a lump sum.

Question 18

Q: How is tax applied to the State Pension?

Answer 18

A: Tax is never deducted directly from the State Pension, but it is a taxable benefit and is treated for tax purposes as pension income.

Question 19

Q: Can the UK State Pension be paid to individuals living abroad and do they receive the annual increases?

Answer 19

A: Yes, the UK State Pension can be paid to someone living abroad, but whether they receive the annual increases depends on their country of residence.

Question 20

Q: What is the current State Pension Age (SPA) for men and women, and when is the next scheduled increase?

Answer 20

A: Currently, the SPA for men and women is 66, and it will increase to 67 between 2026 and 2028.

Question 21

Q: What benefits may be available to a survivor whose spouse or civil partner dies on or after 6 April 2017?

Answer 21

A: The survivor may be eligible for either the standard or higher rate of Bereavement Support Payment.

Question 22

Q: Who is eligible for the higher rate of Bereavement Support Payment, and who receives the standard rate?

Answer 22

A: The higher rate of Bereavement Support Payment is payable to claimants who are pregnant at the time of their spouse/civil partner’s death or who are entitled to receive child benefit. The standard rate is paid to all other claimants.

Question 23

Q: Is it possible for a surviving spouse or civil partner to inherit any entitlements to SERPS or S2P after the death of their partner, and if so, how much?

Answer 23

A: Yes, a surviving spouse or civil partner can inherit some or all of any entitlement to SERPS or S2P that the deceased had.

Question 24

Q: What is the purpose of the State Pension Credit?

Answer 24

A: The State Pension Credit is a means-tested benefit designed to provide a minimum level of income in retirement.

Question 25

Q: What are the two aspects of the State Pension Credit?

Answer 25

A: The State Pension Credit has two aspects: the Guarantee Credit and the Savings Credit.

Question 26

Q: Is Savings Credit available to those who reach their State Pension Age (SPA) on or after 6 April 2016?

Answer 26

A: No, Savings Credit is no longer available for those who reach SPA on or after 6 April 2016.

Question 27

Q: What was the required percentage of ‘working life’ qualifying years needed to qualify for the full BSP for those who reached SPA before 6 April 2010?

Answer 27

A: 90% of their ‘working life’.

Question 28

Q: How many working life years was considered for a male who reached SPA before 6 April 2010?

Answer 28

A: 49 years.

Question 29

Q: How many working life years was considered for a female who reached SPA before 6 April 2010?

Answer 29

A: 44 years.

Question 30

Q: What was the minimum qualification period, as a percentage, of the maximum amount to receive any BSP?

Answer 30

A: 25% of the maximum amount.

Question 31

Q: How many qualifying years did a male need to have to receive any BSP?

Answer 31

A: Eleven qualifying years.

Question 32

Q: How many qualifying years did a female need to have to receive any BSP?

Answer 32

A: Ten qualifying years.

Question 33

Q: For couples (either married or in a civil partnership) where both reached SPA before 6 April 2016 and have at least 30 qualifying years, how much BSP do they each receive per week for the year 2023/24?

Answer 33

A: £156.20 per week.

Question 34

Q: Which individuals who reached SPA before 6 April 2016 may have qualified for a Category A pension?

Answer 34

A:
1. A divorcee who can use the qualifying years of their former spouse.
2. A widow who is not entitled to a Widow’s Pension or bereavement benefits.
3. A widow or widower entitled to long-term incapacity benefit.

Question 35

Q: Who qualifies as a dependant for the Category B pension?

Answer 35

A: A husband, wife, or civil partner.

Question 36

Q: How many qualifying years must a dependant have reached SPA with to be considered for a ‘Category B’ pension?

Answer 36

A: Less than 18 qualifying years (i.e., they were entitled to less than 60% of the full BSP in their own right).

Question 37

Q: What is the full rate of Category B pension for 2023/24?

Answer 37

A: £93.60 per week.

Question 38

Q: Under what circumstances is the full rate of Category B pension paid?

Answer 38

A: It’s only paid where the spouse or civil partner, whose NIC record was being used, was entitled to a full Category A pension when they reached their SPA (which had to be before 6 April 2016).

Question 39

Q: How is the Category B pension adjusted if the spouse or civil partner was not entitled to the full Category A pension?

Answer 39

A: The Category B pension would be reduced proportionately. For instance, if they were only entitled to 90% of the full Category A pension, then the maximum Category B pension payable would be 90% of the maximum.

Question 40

Q: If someone was entitled to 90% of the full Category A pension, how much Category B pension would they get in 2023/24?

Answer 40

A: 90% × £93.60.

Question 41

Q: Can someone who reached SPA before 6 April 2016 receive both a Category A and Category B pension?

Answer 41

A: Yes, it is possible for someone to receive both a Category A pension and a Category B pension.

Question 42

Q: Which individuals might be entitled to receive the Additional State Pension?

Answer 42

A: Individuals who reached their SPA before 6 April 2016.

Question 43

Q: What are the three components of the Additional State Pension?

Answer 43

A:
1. Graduated Retirement Benefit (GRB) - accrued between 6 April 1961 and 5 April 1975.
2. State Earnings Related Pension Scheme (SERPS) - accrued between 6 April 1978 and 5 April 2002.
3. State Second Pension (S2P) - accrued between 6 April 2002 and 5 April 2016.

Question 44

Q: On what basis was eligibility for GRB and SERPS determined?

Answer 44

A: Based on the Class 1 NICs paid by employees.

Question 45

Q: On what basis was eligibility for S2P determined?

Answer 45

A: Based on Class 1 NICs paid by employees and credits for Class 1 NICs received by those claiming certain benefits.

Question 46

Q: Were any of the Additional State Pension schemes available to the self-employed?

Answer 46

A: No, none of these schemes was available to the self-employed.

Question 47

Q: How does the Additional State Pension change each year?

Answer 47

A: It increases based on increases in CPI (Consumer Price Index).

Question 48

Q: Is the Additional State Pension subject to the triple lock guarantee?

Answer 48

A: No, it is not subject to the triple lock guarantee.

Question 49

Q: What does it mean to ‘contract out’ of the additional State Pension schemes?

Answer 49

A: To ‘contract out’ means that an individual opts out of the Additional State Pension schemes, often through an employer’s contracted-out defined benefit scheme. During this time, they don’t accrue entitlements to the Additional State Pension.

Question 50

Q: What benefit did individuals receive while contracted out?

Answer 50

A: They paid lower rates of Class 1 NICs on part of their income.

Question 51

Q: What did individuals receive when they contracted-out via a defined contribution scheme between 1988 and 2012?

Answer 51

A: They received a ‘rebate’ of part of their NICs from the Government, which was then paid into a private defined contribution pension plan in their name.

Question 52

Q: As of 6 April 2016, what is the minimum number of qualifying years needed to receive any State Pension?

Answer 52

A: Ten qualifying years (through contributions or credits).

Question 53

Q: What is the full rate of the new State Pension for 2023/24?

Answer 53

A: £203.85 per week.

Question 54

Q: How does the new State Pension increase each year?

Answer 54

A: In line with the triple lock.

Question 55

Q: How many qualifying years are needed for the full new State Pension?

Answer 55

A: At least 35 qualifying years (through contributions or credits).

Question 56

Q: Can a higher pension be payable under the new State Pension rules?

Answer 56

A: Yes, if the individual has any entitlement to Additional State Pension (i.e. GRB, SERPS or S2P) accrued prior to 6 April 2016.

Question 57

Q: Which NIC classes all accrue the new State Pension at the same rate?

Answer 57

A: Class 1, 2, and 3 NICs.

Question 58

Q: How does the full rate of the new State Pension for 2023/24 compare to the BSP and the Guarantee Credit element of the Pension Credit?

Answer 58

A: The new State Pension is £203.85 per week, compared to the BSP of £156.20 per week and the Guarantee Credit element of the Pension Credit of £201.05 per week.

Question 59

Q: What conditions allow an individual working in the EU to continue paying NICs in the UK?

Answer 59

A: The individual must have a certificate from HMRC and meet one or more of the following conditions:
1. Working in the EU temporarily for up to two years.
2. A multi-state worker working in the UK and one or more EU country.
3. A civil servant working for the UK Government.
4. Working onboard a vessel at sea with a UK flag.
5. Working as flight or cabin crew where the airline’s home base is in the UK.

Question 60

Q: If an individual’s starting amount was less than the full amount of the new State Pension in 2016/17, what can they do?

Answer 60

A: They can increase their State Pension by adding more qualifying years to their NIC record between 6 April 2016 and their SPA.

Question 61

Q: What is a “protected payment” in the context of the new State Pension?

Answer 61

A: If an individual’s starting amount was higher than the full amount of the new State Pension in 2016/17, the difference between their starting amount and the new State Pension is called their protected payment.

Question 62

Q: How does the protected payment increase each year?

Answer 62

A: It increases in line with increases in the CPI.

Question 63

Q: Do any qualifying years added after 5 April 2016 increase an individual’s State Pension entitlement if they have a protected payment?

Answer 63

A: No, any qualifying years added after 5 April 2016 will not increase the individual’s State Pension entitlement.

Question 64

Q: What is the purpose of Class 3 NICs?

Answer 64

A: Class 3 NICs are voluntary and can be paid by individuals with an inadequate NIC record to increase their entitlement to the new State Pension or BSP (if they reached SPA before 6 April 2016).

Question 65

Q: What is the general deadline for paying Class 3 NICs in relation to the tax year of the contribution shortfall?

Answer 65

A: They should be paid within six years of the tax year in which the contribution shortfall occurred.

Question 66

Q: If someone wants to cover gaps for the tax year 2017/18 with Class 3 NICs, by when should they make the payment?

Answer 66

A: They must make the payment no later than 5 April 2024.

Question 67

Q: Can Class 3 NICs be paid after reaching the State Pension Age (SPA)?

Answer 67

A: Yes, but only for a contribution shortfall that occurred prior to reaching their SPA.

Question 68

Q: What is the weekly rate for Class 3 NICs for the year 2023/24?

Answer 68

A: £17.45.

Question 69

Q: How is the rate determined for Class 3 NICs payments covering a gap in contributions from more than two years ago?

Answer 69

A: The rate will be the one applicable in the tax year of payment.

Question 70

Q: What are the extended time limits for paying Class 3 NICs for the years 2006/07 to 2015/16?

Answer 70

A: Those affected by the change to the new State Pension had more time to pay Class 3 NICs. The extended time limits applied if the individual reached SPA on or after 6 April 2016 and they make the payment by 5 April 2025.

Question 71

Q: How does the income purchased by making Class 3A NICs adjust over time?

Answer 71

A: The income purchased by making Class 3A NICs increases in line with the CPI, unless the person receiving the income lives in a country where the UK State Pension is not uprated.

Question 72

Q: What provision is made for a surviving spouse or civil partner in relation to Class 3A NICs?

Answer 72

A: It provides a 50% surviving spouse/civil partner’s pension upon the death of the individual who purchased the income.

Question 73

Q: How is the income from Class 3A NICs taxed?

Answer 73

A: The income purchased by the Class 3A NICs is taxed as pension income in the same way as any other State Pension income.

Question 74

Q: Can the income from Class 3A NICs impact means-tested benefits?

Answer 74

A: Yes, it will be taken into account if means-tested benefits are applied for.

Question 75

Q: Can the income from Class 3A NICs be included in a pension sharing order?

Answer 75

A: Yes, it can be included in a pension sharing order in the event of a divorce.

Question 76

Q: What is the main difference between Class 3 NICs and Class 3A NICs?

Answer 76

A: Class 3 NICs increase the number of qualifying years, allowing an individual to achieve a higher level of new State Pension (or BSP for those who reached SPA before 6 April 2016). Class 3A NICs allowed an individual to purchase a higher level of Additional State Pension, specifically related to benefits built up due to SERPS or S2P.

Question 77

Q: What decision was made regarding the triple lock in the March 2021 Budget?

Answer 77

A: In the March 2021 Budget, the triple lock was retained, even though there was a strain on the Government’s finances due to COVID-19.

Question 78

Q: Why was the triple lock broken for increases applied to the State Pension in 2022/23?

Answer 78

A: The triple lock was broken because earnings showed a large rise of 7% due to a ‘statistical anomaly’ caused by the ending of furlough, which had resulted in a 20% wage reduction the previous year. The Government believed it would be ‘unfair’ for pensioners to benefit from this fact.

Question 79

Q: Despite the rise in inflation, how was the State Pension adjusted for 2023/24?

Answer 79

A: The triple lock was applied to the payments for 2023/24, resulting in an increase in payments of 10.1%.

Question 80

Q: Is there a guarantee that the triple lock will be applied in the future?

Answer 80

A: No, there is no guarantee that the triple lock will apply over the longer term.

Question 81

Q: Can the State Pension be deferred under both pre and post 6 April rules?

Answer 81

A: Yes, the State Pension can be deferred under both the pre and post 6 April rules.

Question 82

Q: When can an individual choose to defer their State Pension?

Answer 82

A: The deferral can occur at the point the pension becomes payable (i.e. when the recipient reaches their SPA) or even after the pension has started to be received.

Question 83

Q: How many times can a person defer their State Pension?

Answer 83

A: Deferral can only occur once.

Question 84

Q: When an individual living outside the UK decides to end deferment and claim their State Pension, what determines the amount they receive?

Answer 84

A: The amount they receive is determined by the country they live in.

Question 85

Q: Which individuals living abroad are subject to the same State Pension deferral rules as the UK?

Answer 85

A: Individuals who live in the EEA, Switzerland, or a country that has a social security agreement with the UK (except New Zealand and Canada).

Question 86

Q: For individuals residing outside the EEA, Switzerland, and certain agreement countries, how is the extra State Pension determined upon ending deferment?

Answer 86

A: They will receive an extra State Pension equal to the larger of:
1. their State Pension entitlement when they reached SPA; or
2. their State Pension entitlement at the date they moved abroad.

Question 87

Q: What is the minimum duration for which an individual must defer their State Pension to receive a higher weekly pension if they reached their SPA before 6 April 2016?

Answer 87

A: An individual must defer their State Pension for at least five weeks.

Question 88

Q: How much will the State Pension increase by for every five weeks of deferral for those who reached their SPA before 6 April 2016?

Answer 88

A: The State Pension will increase by 1% for every five weeks they delay drawing it.

Question 89

Q: What are the yearly and weekly increment percentages for deferring the State Pension under the pre-6 April 2016 rules?

Answer 89

A: The State Pension increases by 0.2% per week and 10.4% per year.

Question 90

Q: If an individual defers their State Pension for at least twelve months, what options do they have?

Answer 90

A: They may choose to receive either a higher weekly State pension or a lump-sum payment.

Question 91

Q: How is the lump-sum option calculated if chosen after at least twelve months of deferral?

Answer 91

A: The lump-sum payment is based on the amount of State Pension payments that were deferred, with weekly compound interest added at 2% above the Bank of England base rate.

Question 92

Q: If someone began receiving their State Pension before 6 April 2016 and then chooses to defer it, which rules apply to them?

Answer 92

A: They will be subject to the pre-6 April 2016 rules, regardless of when the deferral takes place.

Question 93

Q: What happens to the deferred State Pension benefits if an individual who reached their SPA prior to 6 April 2016 dies during deferral?

Answer 93

A: Their spouse or civil partner can inherit their deferred benefits, but they must meet certain conditions set by the DWP.

Question 94

Q: For individuals who reach their SPA on or after 6 April 2016, what is the minimum duration they must defer their State Pension to receive any increase?

Answer 94

A: They must defer their State Pension for at least nine weeks.

Question 95

Q: How much will the State Pension increase by for every nine weeks of deferral for those who reached their SPA on or after 6 April 2016?

Answer 95

A: The State Pension will increase by 1% for every nine weeks of deferral.

Question 96

Q: What is the yearly increment percentage for deferring the State Pension under the post-6 April 2016 rules?

Answer 96

A: The State Pension increases by just under 5.8% for every full year of deferral.

Question 97

Q: Do individuals who reach their SPA on or after 6 April 2016 have the option to take the deferred amount as a lump sum?

Answer 97

A: No, there is no option to take the deferred amount as a lump sum.

Question 98

Q: Can a surviving spouse/civil partner inherit the deferred State Pension of an individual who reached their SPA on or after 6 April 2016?

Answer 98

A: No, it is not possible for a surviving spouse/civil partner to inherit deferred State Pension. However, the deceased’s estate may claim up to three months’ arrears of their State Pension.

Question 99

Q: Is tax directly deducted from the State Pension?

Answer 99

A: No, tax is never deducted directly from the State Pension.

Question 100

Q: How is the State Pension treated for tax purposes?

Answer 100

A: The State Pension is treated as pension income for tax purposes, taxed in the same way as earned income.

Question 101

Q: List the three ways tax owed on the State Pension can be collected when the total income is above the individual’s personal allowance.

Answer 101

A:
1. Collected from another pension using PAYE through an adjusted tax code.
2. Collected through an employer’s PAYE scheme if the individual is still working.
3. Collected via their self-assessment tax return if they have no other pension income and are not working.

Question 102

Q: How is a Category B pension treated for tax purposes for a spouse/civil partner who reached SPA before 6 April 2016?

Answer 102

A: A Category B pension is treated as part of their income for tax assessment purposes.

Question 103

Q: For individuals who reached their SPA before 6 April 2016 and defer their State Pension for at least twelve months, how is the lump sum option taxed?

Answer 103

A: The lump sum is taxable at the same rate as the individual’s other income but cannot move them into a higher tax bracket. If their taxable earnings are below their personal allowance in the year of the payment, the lump sum is tax-free, even if its value exceeds their personal allowance.

Question 104

Q: In which situations is someone entitled to the annual increase to their State Pension while living abroad?

Answer 104

A: They receive the annual increase if they live in:
1. the UK for six months or more each year;
2. an EEA country;
3. Gibraltar;
4. Switzerland; or
5. a country with a reciprocal social security agreement with the UK.

Question 105

Q: What happens to the annual increase if an individual returns to live in the UK after living abroad?

Answer 105

A: If they return to live in the UK, their State Pension will be increased each year.

Question 106

Q: How is the State Pension income taxed for UK residents living abroad?

Answer 106

A:
1. UK residents are taxed in the usual manner.
2. Non-residents living in a country with a double taxation agreement with the UK don’t pay UK tax on their State Pension but might pay tax in their resident country.
3. Those living in countries without a double taxation agreement with the UK pay UK tax and may also be taxed in their resident country.

Question 107

Q: When can an individual start receiving their State Pension?

Answer 107

A: Upon reaching the State Pension age (SPA).

Question 108

Q: What is the significance of November 2018 in relation to SPA?

Answer 108

A: In November 2018, the SPA for both men and women was equalized at age 65.

Question 109

Q: When did the SPA increase to age 66?

Answer 109

A: The SPA increased to age 66 by September 2020.

Question 110

Q: When is the SPA expected to increase to 67?

Answer 110

A: The SPA will increase to 67 between 2026 and 2028.

Question 111

Q: What was introduced by the Pensions Act 2014 regarding SPA?

Answer 111

A: The Pensions Act 2014 introduced a requirement for a review of the SPA to be undertaken in every Parliament, considering factors like life expectancy, healthy life expectancy, and differences in life expectancy between socio-economic groups.

Question 112

Q: What notice period is intended to be given to individuals for changes to their SPA?

Answer 112

A: At least ten years’ notice.

Question 113

Q: What were the findings from the Government’s second review of the SPA in March 2023?

Answer 113

A: It concluded that the rise to age 67 should proceed, but a decision regarding the increase to age 68 was not reached. This will be revisited in the next review.

Question 114

Q: What is the purpose of calculating income when an applicant applies for State Pension Credit?

Answer 114

A: The purpose is to establish Pension Credit entitlement.

Question 115

Q: List some sources of income that are included in the calculation for Pension Credit.

Answer 115

A: State Pensions, private pensions, earnings, most social security benefits (e.g., Carer’s Allowance), and savings over £10,000.

Question 116

Q: How are savings over £10,000 treated in the calculation for Pension Credit?

Answer 116

A: Savings over £10,000 are deemed to provide income of £1 for every £500 or part £500 in excess of £10,000.

Question 117

Q: How is deemed income from savings calculated if someone holds £16,650 in an ISA for Pension Credit purposes?

Answer 117

A: The calculation is: (£16,650 - £10,000) / £500 = £13.3. Rounded up, this gives a deemed income of £14.

Question 118

Q: Does deferring receipt of pension income increase entitlement to Pension Credit?

Answer 118

A: No, deferring receipt of pension income (either State or private) will not increase entitlement to Pension Credit because any deferred entitlement is included in the calculation.