Pension Credit is one of the most under-claimed benefits in the UK. Roughly 850,000 households who qualify don’t receive it — missing out on up to £3,900 per year in Guarantee Credit alone, plus thousands more in additional benefits that Pension Credit unlocks.
If you or someone you know is over State Pension age and has a low income, this guide explains exactly what Pension Credit is, how much you could get, and how to apply.
What Is Pension Credit?
Pension Credit is a means-tested benefit for people aged 66 or over (State Pension age) in England, Scotland, or Wales. It has two parts:
| Part | What it does |
|---|---|
| Guarantee Credit | Tops up your weekly income to a minimum level |
| Savings Credit | Extra amount for people who saved for retirement — only available to those who reached State Pension age before 6 April 2016 |
Most people’s focus should be on Guarantee Credit, which is the larger and more widely available component.
Guarantee Credit: 2026/27 Rates
| Weekly minimum income | |
|---|---|
| Single person | £218.15 |
| Couple | £332.95 |
If your weekly income (from all sources) is below these amounts, Guarantee Credit tops it up to the minimum.
Example:
- Joan is single, aged 68
- She receives the State Pension of £142/week and a small occupational pension of £30/week
- Total income: £172/week
- Guarantee Credit: £218.15 − £172 = £46.15/week = £2,400/year
What Counts as Income for Pension Credit?
| Counts as income | Does NOT count |
|---|---|
| State Pension (full or partial) | Disability Living Allowance / PIP |
| Private or occupational pensions | Attendance Allowance |
| Earnings from employment | Housing Benefit |
| Benefits counted as income (carer’s allowance) | Council Tax Reduction |
| Assumed income from savings over £10,000 | Capital (ISA proceeds if withdrawing capital) |
Savings: The Tariff Income Rule
Savings and investments over £10,000 generate assumed weekly income:
- For every £500 of savings over £10,000: +£1 of assumed weekly income
Example:
- Savings: £14,500 (£4,500 over £10,000 = 9 × £500)
- Tariff income added: £9/week
This reduces your Guarantee Credit entitlement but doesn’t disqualify you unless your total income (including tariff) exceeds the minimum.
Savings Credit (For Those Who Reached State Pension Age Before 6 April 2016)
Savings Credit rewards people who saved for retirement but have modest incomes. It is only available if:
- You or your partner reached State Pension age before 6 April 2016
- You qualify for Guarantee Credit OR your income is above the Savings Credit threshold
2026/27 maximum Savings Credit:
- Single: £17.01/week
- Couple: £19.04/week
This is a small additional amount on top of Guarantee Credit. New claimants who reached pension age from April 2016 onwards cannot get Savings Credit.
Additional Amounts Within Pension Credit
On top of the standard minimum, you may qualify for additional amounts:
| Extra amount | Qualifying condition | Weekly amount 2026/27 |
|---|---|---|
| Severe disability addition | You receive PIP/DLA Care, live alone, no carer claiming CA | +£81.50 |
| Carers addition | You receive Carer’s Allowance | +£46.40 |
| Child amount | You are responsible for a child under 16 | Varies |
| Responsible for a child with disabilities | Child receives DLA | Additional amounts |
What Claiming Pension Credit Unlocks
This is the key point that many people miss. Claiming Pension Credit (even a very small amount — as little as £1/week of Guarantee Credit) makes you eligible for:
| Additional benefit | Typical value |
|---|---|
| Housing Benefit at maximum rate | Free or heavily subsidised rent |
| Council Tax Reduction | Up to full council tax bill covered |
| Free NHS dental treatment | Saves hundreds per year for regular dental users |
| Free NHS sight tests and discounted glasses | £25–£50 per test |
| Warm Home Discount | £150/year on electricity bill |
| Winter Fuel Payment | £200–£300/year (restored for Pension Credit claimants from winter 2024/25) |
| Cold Weather Payment | £25 for every 7-day cold snap |
The combined value of these gateway benefits can easily exceed £1,000–3,000 per year in addition to the Pension Credit payment itself.
Winter Fuel Payment note: From autumn 2024, Winter Fuel Payments were restricted to Pension Credit recipients only (previously universal for everyone over 66). Claiming Pension Credit is now the only way most pensioners receive this payment.
How to Apply for Pension Credit
By Phone (Fastest Method)
Call: 0800 99 1234 — free from most phones Hours: Monday to Friday, 8am to 6pm
Have ready:
- Your National Insurance number
- Information about your income (State Pension, private pensions, any employment income)
- Bank account details
- Information about your savings and investments
- If you rent: your landlord’s name and address, and your rent amount
Online
Apply at GOV.UK/pension-credit using your Government Gateway login.
By Post
Download or request form PC1 and return to the Pension Credit team.
Backdating
Pension Credit can be backdated up to 3 months — meaning even if you should have claimed months ago, you can still get the money. Many people lose years of entitlement because they do not realise they can claim. If you think you have been entitled for years, seek welfare rights advice.
You can also apply up to 4 months before reaching State Pension age.
How to Help a Relative Claim
Many older people are reluctant to claim benefits or do not know they qualify. Age UK, Citizens Advice, and local council welfare rights teams can help. Specifically:
- Age UK has a Benefits Advice Line: 0800 678 1602
- Citizens Advice local offices can help complete the application
- Power of Attorney holders can claim on behalf of someone who cannot manage their own affairs