Pension Credit
Boost your retirement income with a state top-up
If you’re retired and your weekly income is below £218 for individuals or £332 for couples, you might be eligible for Pension Credit, which could amount to thousands of pounds annually. Additionally, receiving Pension Credit opens the door to numerous other benefits. Despite this, over 800,000 eligible households missed out on up to £2.1 billion in Pension Credit. Find out how to determine your eligibility and the process to make a claim.
1-min read: Pension Credit – check NOW to see if you qualify
It’s a national tragedy that nearly one million pensioner households, many of whom have contributed to the system for years, are missing out on an average annual income increase of approximately £3,900 through Pension Credit. Here, we provide a summary and quick links to help you get started if you’re familiar with the basics. For more detailed assistance, read the full guide below.
- Checking your eligibility only takes a few minutes, so don’t delay—reach out now. The rules for qualifying for Pension Credit are intricate, but a simple guideline for those of state pension age (currently 66 or older) is:
- If you are single with a total weekly income under about £218, or…
- If you are a couple, both of pension age, with a combined weekly income under roughly £332…
then you should visit the Pension Credit website or call the helpline to find out if you qualify.
- If your income is slightly above these figures, you might still be eligible for Pension Credit, depending on your circumstances (a higher threshold applies if you receive certain disability benefits or have caregiving responsibilities, so it’s worth checking in these cases).
- Pension Credit typically provides an average of £75 per week. For more information on how much Pension Credit you can receive, see our detailed guide.
- Pension Credit has a significant advantage… it also opens the door to FREE TV licenses and other benefits. By claiming the main component of Pension Credit, you may also qualify for discounts on additional expenses, such as a council tax reduction (around £1,000 per year) and the Warm Home Discount (about £140 per year). Explore Pension Credit extras for more details.
- Remember, Pension Credit is not granted automatically—you need to apply. You can apply through Gov.uk if you’ve already received your state pension, or call the Pension Service at 0800 99 1234 (or the Northern Ireland Pension Centre at 0808 100 6165). You can claim back up to three months, so checking sooner will help you start receiving benefits faster.
What is Pension Credit?
Pension Credit is a financial support program designed for individuals who are above the state pension age, providing an additional boost to their income.
This benefit comprises two components. While some individuals receive both, many are eligible for just one of the components. Either way, you could be entitled to extra funds:
- Guarantee Credit – This is the primary component of Pension Credit, which supplements your weekly income to ensure it reaches a minimum guaranteed amount. For the fiscal year 2024/25, this amounts to £218.15 per week for individuals and £332.95 per week for couples. Details on eligibility are provided below.
- Savings Credit – Available to those who reached state pension age before April 2016, this component offers an additional benefit for those who have saved for retirement through savings, employment, or a private pension. It provides up to £17.01 per week for individuals and £19.04 per week for couples. To qualify, your income must exceed a certain threshold of £189.80 if you’re single and £301.22 if you’re in a couple. A comprehensive explanation of Savings Credit and its applicability for those who reached state pension age after April 2016 is provided below.
Over three million households are eligible for Pension Credit, yet it’s estimated that more than 800,000 do not claim it, often due to a lack of awareness about their eligibility.
Do I qualify for Pension Credit?
To qualify for Pension Credit you must:
- Live in the UK – England, Scotland, Wales or Northern Ireland.
- Have reached state pension age.
- Have a weekly income below £218.15 if you’re single, or £332.95 if you’re in a couple.
- If you’re in a couple, you’ll BOTH need to have reached state pension age. You don’t have to be married or in a civil partnership, you’re considered a couple if you live together. For couples, one partner applies and then provides income and savings details for both partners.
Extra criteria for savings credit:
- To qualify for the savings element as well (if you’re making a new claim) you also need to have reached 65 if you’re a man, and 63 if you’re a woman, before 6 April 2016 – the state pension ages back then.
- You need to earn above the threshold amount of £189.80 if you’re single, or £301.22 if you’re in a couple.
- However, if you’re part of a couple and just one of you satisfies ALL of these conditions, you could still qualify for savings credit as a couple. You or your partner must:
– Have been awarded savings credit before 6 April 2016.
– Have remained entitled to savings credit at all times since 6 April 2016.
Quickly check if you qualify. Don’t stall, just call!
Navigating Pension Credit can be tricky, so instead of wrestling with the details yourself, reach out online or by phone to check your eligibility. It’s a quick process that could potentially save you thousands. Even if it turns out you’re not eligible, there’s no harm in checking—it’s a risk-free way to find out.
So don’t stall, just call (or go online, but we haven’t got a rhyme for that).
- Check quickly online. If you’re comfortable using a computer, the quickest way to find out if you qualify for Pension Credit is by using the Government’s free Pension Credit calculator.To do this, it’s easiest if you have details of your current earnings, benefits and pensions to hand (for you and your partner if you live with them). It’ll then give an instant estimate of how much you’re due.
- Or, if you prefer, have a chat with someone about it (it’s free). There are free government helplines you can call up to talk it through. Again, it’s best with details to hand, but if you’ve not got them or need help with that… don’t stall, just call.- England, Wales or Scotland. Pension Service helpline: 0800 99 1234 (8am to 5pm, Monday to Friday)
– Northern Ireland. Pension Centre: 0808 100 6165 (9am to 4pm, Monday to Friday)
What to do if you don’t qualify
If you’re facing financial difficulties and have used the government calculator or contacted the helpline only to find out you’re not eligible for Pension Credit, there could be other avenues for support available to you.
For instance, if you’ve reached the state pension age but your partner hasn’t, you might not qualify for Pension Credit. However, you might still be eligible for Universal Credit.
How much can I get?
Government statistics indicate that the typical weekly Pension Credit amount is approximately £75, which totals over £3,900 annually. However, the specific amount you receive depends on three key factors:
- Your income: This encompasses your basic and additional state pensions, earnings from any other pensions, any job income, and any social security benefits you may receive. If you’re eligible for a personal or workplace pension but haven’t claimed it yet, the expected amount still counts as part of your income.
- Your savings or investments: Any savings or investments exceeding £10,000 are assessed with an income rate of £1 for every £500 above this threshold. Detailed calculations of this are provided below.
- Your relationship status: If you live with a partner, your joint income and savings will be considered. This definition applies to those living together as a couple.
Pension Credit is divided into two components: ‘guarantee credit,’ which acts as a supplement for those with low income, and ‘savings credit,’ a reward for pensioners with modest savings. It’s possible to qualify for one component without the other. Here’s a detailed explanation of how each part functions:
1. Guarantee credit – top-up for those on low incomes
This is straightforward: Pension Credit ensures that your weekly income is boosted to a minimum guaranteed level. This guaranteed amount adjusts annually in response to inflation. Your total income is calculated based on earnings from employment, pensions (including the state pension), and any assumed income from savings (as detailed below). Then, the top-up works as follows:
- For singles: If your weekly income, including any pension, falls below £218.15, Pension Credit will increase it to this amount.
- For couples: If your combined weekly income is under £332.95, Pension Credit will raise it to this amount.
Additional support may be available if you are a carer, have severe disabilities, are responsible for a child or young person, or have specific housing expenses. Check on the Gov.uk website.
2. Savings credit – a reward for those on lower incomes who have managed to build up a little extra income
If you reached state pension age before April 2016 (approximately aged 72 or older), you might be eligible for a top-up to your pension if you have savings, even if you do not qualify for guarantee credit.
The term “savings credit” can be a bit misleading, as it doesn’t merely consider the amount of your savings. Instead, it takes into account the income you receive from those savings (explained further below), along with other pension pots and earnings from employment or other sources. Essentially, the more income you generate from your savings, the more savings credit you could receive.
Calculating this can be complex, so it’s often best to call and check, but here’s a brief overview:
- For singles: If your total income from savings and other sources exceeds £189.80 per week, you’ll receive an additional 60p of savings credit for every extra £1 of income, up to a maximum of £17.01 per week. Beyond this cap, your Pension Credit will decrease by 40p for every additional £1 of income above the guarantee credit threshold.
- For couples: If your combined income from savings and other sources goes beyond £301.22 per week, you’ll earn an extra 60p of savings credit for every additional £1 of income, up to a maximum of £19.04 per week. Once this cap is reached, your Pension Credit will be reduced by 40p for each £1 of income above the guarantee credit level.
If you are eligible for both guarantee credit and savings credit, your savings credit will not be reduced until your income exceeds the level required to qualify for any guarantee credit.
How are my savings and investments taken into account when working out my income?
When determining your eligibility for Pension Credit, both your savings and investments are considered, but not in the way you might expect. Instead of looking at the total amount, the focus is on the income you’re presumed to be generating from these assets.
- If your savings and investments are less than £10,000, they have no impact on your eligibility for guarantee credit or savings credit.
- If your savings or investments exceed £10,000, the state presumes you earn an income of £1 per week for every £500 (or partial £500) of your assets. Your claim is evaluated based on this estimated income. To actually earn a similar amount from your savings, you would need an extraordinarily high interest rate of 10.4%.
What if the value of my savings decreases?
The initial amount you report for your savings and investments remains on record and is used for future calculations unless you inform the Pension Service of any changes.
If you deplete your savings or experience a decrease in the value of your investments, it’s crucial to update the Pension Service promptly to have your entitled amount reassessed. Any increase in benefits will be applied once your documentation is processed. To update your information, call 0800 99 1234.
I’m state pension age, but my partner isn’t. What do I do?
Couples with a mixed age, where only one partner has reached the state pension age, will now need to apply for Universal Credit instead, which often provides significantly less financial support. According to Age UK, this shift could lead to some couples losing up to £7,000 annually in Pension Credit. Once both partners reach the state pension age, they can apply for Pension Credit, as Universal Credit will no longer be an option at that point.
If only one partner has reached state pension age and is receiving Housing Benefit for the couple, they are still eligible to submit a new claim for Pension Credit.
Can I apply for Pension Credit if I’m a foreign national living in the UK?
To apply, you need to be residing in the UK and free from immigration control, meaning there should be no limitations preventing you from receiving financial assistance from the Government. Additionally, you must meet the criteria of the ‘habitual residence test’.
How do I claim Pension Credit?
The quickest way to claim Pension Credit is via Gov.uk, or by calling the Pension Service on 0800 99 1234. It will even fill in the application form for you. (In Northern Ireland, phone the Northern Ireland Pension Centre on 0808 100 6165.)
You’ll need:
- Your national insurance number
- Information about your income, savings and investments
- Your bank account details
You can make a paper application if you’re unable to make a claim by phone. You can get a friend or family member to call the helpline to ask for a paper application.
The earliest you can start your application for Pension Credit is four months before you reach state pension age.
Need-to-know: You can claim any time after you reach state pension age, but your claim can only be backdated for three months.
We’ve been hearing reports that it’s taking a long time for DWP to process Pension Credit applications. According to the latest from DWP it’s likely to take two months for your application to be processed – though we have heard of some people having to wait much longer.
Could I end up losing my Pension Credit if my circumstances change?
Yes, you must inform the Pension Service if your circumstances change, such as changes in income, savings, or living arrangements. Certain individuals may lose their current Pension Credit due to rule changes for couples. This could occur in the following situations:
- If you’re a single pensioner and begin living with a partner who has not reached the qualifying age as of or after 15 May 2019, you would need to reapply as a couple. However, since that date, you would be required to claim Universal Credit instead.
- If you lose your entitlement to Pension Credit due to a change in circumstances and later become eligible again, but your partner has not reached the qualifying age, you would also need to switch to Universal Credit.
I’m unhappy with the decision that’s been made about my Pension Credit, can I do anything?
You can use the GL24 form to appeal the decision about your Pension Credit if you’re unhappy with it and the decision was before 28 October 2013.
If the decision is after this date, you’ll need to ask for what’s known as ‘mandatory reconsideration’ before you appeal – you must usually do this within one month of the date of a decision. See the Government’s guidance for help.
Can I backdate a claim?
Yes, according to the Department for Work and Pensions, individuals applying for Pension Credit or Housing Benefit at pension age have the option to request backdating of their claim.
Claims for either benefit can be retroactively applied for up to three months, as long as you were eligible for the benefits during that earlier period.
There isn’t a separate form required for this request—you can simply ask for it over the phone when applying, or if applying by mail, indicate on the application form that you wish to have your claim backdated.
Other benefits you qualify for if you get Pension Credit
Even if you discover that you’re eligible for just a small portion of Pension Credit, it’s still worthwhile to apply, as it could grant you access to additional benefits. These benefits include:
Winter Fuel Payment – worth up to £300
Starting from the winter of 2024/25, individuals who are above the state pension age and receive a means-tested benefit (like pension credit) will qualify for an annual grant to assist with energy bill costs. The winter fuel payment typically ranges from £100 to £300 and is automatically issued to those who are eligible. You can find more information on the winter fuel payment.
Free TV licence for over-75s – worth £169.50
An annual standard colour TV licence currently costs £169.50/year and, as of August 2020, most over-75s no longer get their licences for free. However, there are a few exceptions, including if you’re claiming Pension Credit, in which case you’re entitled to a free tv license each year.
To claim, you need to apply for a free licence via the TV licencing website. If you think you’re eligible, but can’t apply online, call the TV Licencing helpline on 0300 790 6117 and request an application form. Lines are open between 8.30am and 6.30pm, from Monday to Friday.
Council tax reduction – potentially worth £1,000s/year
If you receive the guarantee credit portion of Pension Credit, you’re eligible for the highest possible reduction in council tax. In some cases, depending on the policies of your local authority, this could cover the entire amount of your council tax bill. However, if you share your home with other adults who are not financially dependent on you, the reduction may be lower.
If you receive the savings credit portion of Pension Credit, you could also qualify for a discount on your council tax, though it is generally smaller.
To apply for a council tax reduction, you’ll need to get in touch with your council. Discounts can vary depending on where you live – check how much council tax reduction you could get.
Warm home discount – worth £150/year
The Warm Home Discount is a financial credit applied to your energy bill, typically issued by the end of March each year, aimed at individuals with low incomes. If you receive any amount of guarantee credit, you are eligible for this rebate. However, you must be registered with an energy supplier participating in the program, and you must also submit an application.
You can expect to receive a letter between October and December each year outlining the necessary steps. For further information, consult our Energy Grants Guide.
Housing Benefit – potentially worth £1,000s/year
If you are renting your home and receive any level of guarantee credit, you qualify for the maximum Housing Benefit from your local council. The exact amount of Housing Benefit isn’t set, but it can be several hundred pounds per month, potentially covering your entire rent.
If you receive savings credit instead of guarantee credit, you may still receive some support for your rent, but it won’t cover the full amount.
However, your Housing Benefit might be reduced if there are non-dependants living with you or if your rent is deemed too high.
When you claim Pension Credit, you should be asked if you want to claim Housing Benefit at the same time. If you aren’t asked, contact your local authority to apply.
Cold weather payments – potentially worth £25/wk in winter
This benefit is provided for every uninterrupted seven-day stretch of extremely cold weather (0°C or lower) occurring between 1 November and 31 March.
If you qualify, the payment will be automatically deposited into the same bank or building society account where you receive your Pension Credit payments. For detailed information on cold weather payments, refer to our comprehensive guide.
Free home insulation and boiler grants – worth £1,000s for some
If you receive Pension Credit, you might qualify for complimentary cavity wall and loft insulation from your energy supplier. Additionally, if your boiler is malfunctioning, there could be an opportunity to obtain a grant for a replacement from an energy provider, and sometimes you don’t even need to be a current customer to be eligible. For more information, refer to our guide on Free Insulation and Boiler Grants.
Hospital travel expenses
If you qualify for the guarantee element of Pension Credit, you can receive assistance with travel expenses when you’re referred to a hospital by a healthcare professional like a GP or dentist.
It’s important to use the most affordable mode of transportation that suits your needs, considering factors such as the journey length, your personal ability, medical condition, and other relevant details. Inform the hospital staff of your eligibility for travel cost assistance when scheduling your appointment. Additionally, you might be eligible for support with the travel expenses of a companion if the hospital determines that you need someone with you for medical reasons.
At the hospital or treatment center, present your benefit award letter to the receptionist to prove your entitlement to travel cost reimbursement. You must also provide your ticket or receipt for the travel expenses to receive a refund.
Free dental treatment – worth £1,000s/year for some
If you get any amount of guarantee credit, you’re entitled to free NHS dental care. This could include anything from a check-up to full dentures. You don’t need to apply for it – you just need to sign a declaration form when you visit your dentist.
Voucher for glasses/contact lenses – worth £39 to £215 depending on prescription
If you get any amount of guarantee credit, you are entitled to a voucher for glasses/contact lenses. You need to ask for a form for the voucher when you have your eye test.
Other discounts
Additionally, you may be able to get other deals, such as a discount on your water bill. South West Water, for example, offers a reduction in water and sewerage charges of up to 50% for people on the guarantee element of Pension Credit. Check your local water board to see what it’s offering.
There is also a range of broadband offers available to those claiming Pension Credit. This includes the BT Home Essentials broadband and phone service, which costs just £15 a month (or £10 a month for a call-only plan). There’s also Hyperoptic’s Fair Fibre plan, with varying broadband speeds and costs starting from £15 a month. For full details of the best broadband offers for those on Pension Credit.
We also suggest that you compare these deals with other options available to ensure you’re not missing out on lower prices elsewhere.
Read more on pensions
State pension guide. Check if you can boost it.
Pension need-to-knows. 17 key points for retirement saving.