2. What happens to other benefits and tax credits

The rules for deferring your State Pension are changing if you reach State Pension age on or after 6 April 2016.

You can’t build up extra State Pension or lump sum payments for any days you also get:

  • Income Support
  • Pension Credit
  • Employment and Support Allowance (income-related)
  • Jobseeker’s Allowance (income-based)
  • Universal Credit
  • Carer’s Allowance
  • Incapacity Benefit
  • Severe Disablement Allowance
  • Widow’s Pension
  • Widowed Mother’s Allowance
  • Unemployability Supplement

You can’t build up extra State Pension or lump sum payments for the days your partner gets any income-related benefits, eg:

  • Income Support
  • Pension Credit
  • Universal Credit

If you’re in prison, you won’t build up extra State Pension or lump sum payments until you leave.

Higher weekly payments

If you take your extra State Pension as higher weekly payments, this may reduce any income-related benefits you get, eg:

  • Pension Credit
  • Housing Benefit
  • Council Tax Reduction
  • Tax credits

Lump sum payments

Your tax credits may be reduced if you take your extra State Pension as a lump sum.