Pension Credit is a weekly benefit for people over State Pension age on low income. It’s hugely underclaimed — around 850,000 eligible people don’t claim it.
What is Pension Credit?
Two Parts
| Part | What It Does |
|---|---|
| Guarantee Credit | Tops up income to minimum level |
| Savings Credit | Rewards those who saved for retirement |
Who Can Claim
| Requirement | Details |
|---|---|
| Age | State Pension age or over |
| Residency | Live in UK |
| Income | Below Pension Credit limits |
| Couples | Both assessed together |
Current Rates (2026/27)
| Status | Weekly Minimum Income |
|---|---|
| Single | £218.15 |
| Couple | £332.95 |
If your income is below these amounts, Guarantee Credit tops it up.
Guarantee Credit
How It Works
| Your Situation | What Happens |
|---|---|
| Income below minimum | Topped up to minimum |
| No other income | Get full £218.15/£332.95 |
| State Pension only | Get difference as Pension Credit |
| Other income | Reduces Pension Credit pound for pound |
Example Calculations
| Example | Calculation |
|---|---|
| Single, State Pension £169.50 | £218.15 - £169.50 = £48.65/week Pension Credit |
| Couple, one pension £169.50 | £332.95 - £169.50 = £163.45/week Pension Credit |
| Single, pension + £30 other | £218.15 - £199.50 = £18.65/week |
Additional Amounts
| Circumstance | Extra Weekly Amount |
|---|---|
| Severe disability | £81.50 |
| Carer | £45.60 |
| Disability (couple, both qualify) | £163.00 |
| Housing costs | Mortgage interest, service charges |
Savings Credit
What It Is
| Feature | Details |
|---|---|
| Purpose | Reward for having saved for retirement |
| Who gets it | Those with income over basic State Pension from savings/pension |
| Maximum | £17.01/week (single) or £19.04/week (couple) |
| Phasing out | Gradually reducing for higher incomes |
Important Limitation
| Who Cannot Get Savings Credit | Details |
|---|---|
| Reached State Pension age after 6 April 2016 | New State Pension rules |
| Younger partner if couple | Uses younger person’s pension age |
How It’s Calculated
| Factor | Impact |
|---|---|
| Qualifying income | Must be above threshold |
| Income threshold | £189.80 (single) / £301.22 (couple) |
| Above threshold | 60p for each £1 up to maximum |
| Above Guarantee Credit level | Reduces by 40p per £1 |
How Savings Affect Your Claim
Capital Rules
| Savings Amount | Treatment |
|---|---|
| Under £10,000 | Ignored |
| £10,000 - £16,000 | £1/week assumed for every £500 |
| Over £16,000 | May still qualify if costs high |
What Counts as Savings
| Counted | Not Counted |
|---|---|
| Bank accounts | Your home |
| Building society | Personal possessions |
| ISAs | Business assets (if trading) |
| NS&I | One vehicle |
| Shares | Surrender value of life insurance |
| Investment property |
Examples
| Savings | Impact on Claim |
|---|---|
| £8,000 | No effect |
| £12,000 | £4/week assumed income |
| £15,000 | £10/week assumed income |
| £18,000 | May still qualify — apply anyway |
What Pension Credit Unlocks
Since 2024 Changes — Crucial Benefits
| Benefit | What You Get |
|---|---|
| Winter Fuel Payment | £200 (under 80) or £300 (80+) |
| Free TV licence | If 75 or over |
| Cold Weather Payment | £25 per cold week |
| Warm Home Discount | £150 off electricity |
Maximum Help With Housing
| Benefit | What You Get |
|---|---|
| Housing Benefit | Maximum rate |
| Council Tax Reduction | Usually 100% reduction |
| Mortgage interest | Help with interest payments |
NHS Benefits
| Benefit | Details |
|---|---|
| Free NHS dental | All treatments |
| Free sight tests | Plus voucher for glasses |
| Free prescriptions | Already free if 60+ |
| Wigs and fabric supports | If needed |
| Travel to hospital | Fares reimbursed |
Other Passported Benefits
| Benefit | Details |
|---|---|
| Funeral Expenses Payment | If arranging funeral |
| Sure Start Maternity Grant | For grandchildren you’re caring for |
| Social tariffs | Cheaper broadband from some providers |
How to Claim
Before You Apply
| Step | Action |
|---|---|
| Check eligibility | Use gov.uk calculator |
| Gather information | Income, savings, housing costs |
| Find documents | NI number, bank statements |
Ways to Claim
| Method | Details |
|---|---|
| Phone | 0800 99 1234 (free, 8am-6pm Mon-Fri) |
| Online | gov.uk/pension-credit/how-to-claim |
| Post | Request form by phone |
Information Needed
| Information | Why |
|---|---|
| National Insurance number | Identity |
| Bank details | Payment |
| Income details | State Pension, private pension, other |
| Savings | All accounts |
| Housing costs | Rent, mortgage interest, service charges |
| Partner’s details | If applicable |
Claiming by Phone
| What to Expect | Details |
|---|---|
| Call 0800 99 1234 | Free call |
| Duration | 20-40 minutes |
| Helpful | Advisor guides you through |
| Recommended | Often easiest method |
Backdating
Important Rule
| Feature | Details |
|---|---|
| How far back | Up to 3 months |
| Automatic | Request during claim |
| No extra form | Just ask |
| Lump sum | Backdated amount paid in one go |
Example
| Scenario | Outcome |
|---|---|
| Entitled for 5 years | Only get 3 months back |
| Claim in March for Feb start | Get Feb + March if eligible both |
| Should have claimed earlier | Can only go back 3 months |
Mixed-Age Couples
Rules
| Situation | What Happens |
|---|---|
| One partner pension age, one under | Usually must claim Universal Credit |
| Exception | Already on Pension Credit/Housing Benefit before May 2019 |
| When younger partner reaches pension age | Can switch to Pension Credit |
Pension Credit vs Universal Credit
| Pension Credit | Universal Credit |
|---|---|
| Generally more generous | More conditions |
| No work requirements | Work expectations possible |
| More passported benefits | Fewer extras |
| If you can claim either, PC usually better |
Being Assessed
How Income is Calculated
| Income Type | How Counted |
|---|---|
| State Pension | In full |
| Private/workplace pension | In full |
| Other benefits | Most counted |
| Earnings | Assessed with disregards |
| Tariff income from savings | £1 per £500 over £10,000 |
What’s Not Counted
| Income Type | Treatment |
|---|---|
| Attendance Allowance | Ignored |
| DLA/PIP | Ignored |
| Housing Benefit | Ignored |
| Council Tax Reduction | Ignored |
Housing Costs Help
| Cost | Coverage |
|---|---|
| Mortgage interest | Help available (Support for Mortgage Interest) |
| Ground rent | Included |
| Service charges | Eligible ones included |
| Rent | Claimed through Housing Benefit |
If Your Claim is Refused
What to Do
| Step | Action |
|---|---|
| Get reasons | Ask for written explanation |
| Check figures | They may have made an error |
| Mandatory reconsideration | Ask them to look again |
| Appeal | To tribunal if still disagree |
Common Reasons for Refusal
| Reason | Solution |
|---|---|
| Income too high | Check they’ve included all deductions |
| Savings over limit | Check what they’ve counted |
| Missing information | Provide what’s needed |
| Partner’s income | May need to reassess |
Changes to Report
Tell Pension Service About
| Change | Why |
|---|---|
| Income change | Affects entitlement |
| Moving house | Different housing costs |
| Savings change | Above/below thresholds |
| Partner moves in/out | Reassessed as single/couple |
| Someone dies | Claim adjusted |
| Going into care | Rules change |
How to Report
| Method | Contact |
|---|---|
| Phone | 0800 731 7898 |
| Online | Limited options |
| Post | Write to Pension Service |
Why You Should Claim
Even If You’re Not Sure
| Reason | Details |
|---|---|
| It’s underclaimed | £2bn goes unclaimed yearly |
| Gateway benefit | Unlocks many other benefits |
| Winter Fuel Payment | Only way to get it now (for most) |
| May qualify despite savings | Rules more generous than you think |
| Help available | Advisors can help you claim |
Average Unclaimed Amounts
| Type | Annual Amount |
|---|---|
| Guarantee Credit | £3,500 per year |
| Plus passported benefits | Could be £1,000+ more |
| Housing Benefit | Varies by area |
| Council Tax Reduction | £1,000+ per year |
Getting Help
Free Support
| Organisation | Service |
|---|---|
| Age UK | 0800 678 1602 — benefits advice |
| Citizens Advice | Help with claims |
| Independent Age | 0800 319 6789 — helpline |
| Council welfare rights | Local service |
Benefit Calculators
| Calculator | Details |
|---|---|
| Gov.uk Pension Credit calculator | Official tool |
| Turn2us | Independent check |
| Entitledto | Detailed calculation |
| Age UK benefits calculator | Older people focused |