Until 5 April 2010 the Guarantee Credit could be claimed from the age of 60, but this is in the process of increasing to age 65 in line with the increase in the female SPA.

The Guarantee Credit thresholds for 2018/19 are £163.00 per week for an individual and £248.80 per week for a couple. In order to establish whether Guarantee Credit can be paid:

• a calculation is performed based on the individual/couple’s income and capital;
• if the total income this calculation produces is below the thresholds then the Guarantee Credit is paid so that the income plus Guarantee Credit reaches the threshold; and
• the person who applies must have reached the minimum age for claiming, but it does not matter if their partner is under this age.

EG – Joanne, a widow, is aged 68. The only income she receives in 2018/19 is her BSP, which pays her £125.95 per week. She has no savings.

Joanne will get a Guaranteed Credit of (£163.00 – £125.95) = £37.05 per week to bring her total weekly income up to the Guarantee Credit threshold of £163.00 per week.

EG – Howard reached age 65 in May 2018. He has savings of £15,150 held in a deposit account and is entitled to receive a State Pension of £125 per week although he has not yet claimed this. He has now made an application for Pension Credit.

As Howard reached his SPA on or after 6 April 2016 he is not entitled to claim Savings Credit but he is entitled to claim Guarantee Credit. His income is calculated as:

• State Pension income of £125 per week (even though he has not yet claimed this income); and
• deemed income from his deposit account of (£15,150 – £10,000) / £500 = £11 (£10.30 rounded up to the next whole £1).

Overall this provides a weekly ‘income’ of £136. As this is less than the Guarantee Credit threshold of £163.00 (2018/19), Howard will receive £163.00 – £136 = £27.00 per week in Guarantee Credit.