Pension Credit: What It Is, Who Gets It, and How to Claim It (2025 Guide)
If you’re over State Pension age and on a low income, Pension Credit could boost your weekly income and unlock other valuable benefits. But millions of pounds go unclaimed every year in the UK simply because people don’t know they’re eligible.
In this guide, we’ll break down exactly what Pension Credit is, how much you could get in 2025, and how to apply. Even if you own your home or have modest savings, you might still qualify.
What Is Pension Credit?
Pension Credit is a tax-free benefit for people over the State Pension age with a low income. It’s designed to:
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Top up your weekly income
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Offer extra help with housing, heating, NHS costs, and council tax
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Help you live more comfortably in retirement
It’s separate from your State Pension and won’t affect it. Even if you only get a few pounds a week, you could unlock thousands more in additional support.
Who Can Get Pension Credit in 2025?
To qualify for Pension Credit, you must:
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Live in England, Scotland, or Wales
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Be over State Pension age (66 as of 2025)
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Have a low income, usually under £220 per week (after housing costs)
You don’t need to have paid National Insurance to be eligible.
It has two parts:
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Guarantee Credit – tops up your weekly income
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Savings Credit – rewards modest retirement savings (only for people who reached State Pension age before 6 April 2016)
How Much Is Pension Credit Worth in 2025?
Here’s what you could receive:
| Pension Credit Element | Single Person | Couple |
|---|---|---|
| Guarantee Credit | £218.15/week | £332.95/week |
| Savings Credit (max) | £17.01/week | £19.04/week |
💡 Even if you only qualify for a few pounds, it can give you access to valuable extras like:
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Free NHS dental care
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Cold Weather Payments
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Council Tax Reduction
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Free TV licence (if over 75)
What Counts as Income for Pension Credit?
The following are taken into account:
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State Pension
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Workplace or private pension income
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Earnings
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Rental income
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Certain benefits (e.g. Carer’s Allowance)
But not all income is counted. For example, Personal Independence Payment (PIP) or Attendance Allowance are excluded.
You can also have up to £10,000 in savings without affecting your entitlement. For savings over that, every £500 counts as £1/week of income.
Do You Need to Claim as a Couple?
Yes. If you live with a partner (married, civil partnership, or living together as if you are), you must claim as a couple. Your combined income is assessed.
There was a rule change in May 2019—now, mixed-age couples (one over and one under State Pension age) can only claim Universal Credit, not Pension Credit.
How Pension Credit Unlocks Other Benefits
Even if you receive just £1 of Pension Credit, you’re entitled to:
| Benefit | Value/Support |
|---|---|
| Free NHS dental treatment | Save £20–£100 per procedure |
| Cold Weather Payments | £25/week during eligible weeks |
| Council Tax Reduction | Worth hundreds per year depending on your local council |
| Free TV Licence | For over-75s (worth £169.50/year) |
| Warm Home Discount | £150 off energy bills (varies by supplier) |
| Housing Benefit | Helps pay rent for eligible renters |
See full list of benefits on GOV.UK
How to Apply for Pension Credit
There are three ways to apply:
1. Online
Apply directly on gov.uk/pension-credit
2. By Phone
Call the Pension Credit claim line:
📞 0800 99 1234
(Monday to Friday, 8am to 6pm)
3. By Post
Request a paper application via the helpline.
You’ll need:
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Your National Insurance number
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Details of income and savings
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Bank account information
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Information about any pensions you get
Examples of UK Bank Support for Pensioners
Many UK banks offer tools or resources to help older customers manage income in retirement:
| Bank | Support Offered |
|---|---|
| NatWest | Dedicated “Later Life Banking” helpline |
| Barclays | Financial fitness tool for retirement planning |
| Lloyds Bank | Branch pension help sessions & accessible accounts |
| Santander | ‘Age-Friendly Banking’ services and face-to-face help |
Some banks also offer special basic accounts with no fees, ideal for managing a limited income without overdrafts or hidden charges.
Common Pension Credit Myths (Debunked)
❌ “I own my home, so I won’t qualify”
✅ False – Homeownership does not affect your eligibility.
❌ “I only get a small top-up, not worth claiming”
✅ Even £1/week unlocks big benefits like a free TV licence and council tax help.
❌ “I have some savings, so I’m not eligible”
✅ You can still qualify with up to £10,000 in savings without penalty.
What If You’re Rejected?
If your circumstances change — such as retirement, loss of earnings, or increased expenses — you can reapply at any time.
You also have the right to:
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Request a mandatory reconsideration
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Appeal to an independent tribunal if you still disagree
Many local councils and charities (like Age UK or Citizens Advice) offer free help with applications and appeals.
Take Action: Don’t Miss Out
Over 1 million pensioners in the UK are missing out on Pension Credit. Don’t assume you’re not eligible — even modest pensions or savings might still leave you entitled.
✅ It’s tax-free
✅ It unlocks valuable support
✅ It can be backdated up to 3 months (if eligible)
Check your eligibility and apply today
Final Thoughts
Pension Credit is a vital financial safety net for older people in the UK. Whether you need a little help or a full top-up, it could transform your retirement.
✔ Claim what you’re entitled to
✔ Use official tools to estimate your award
✔ Get help if the process feels overwhelming
If you’re unsure where to begin, speak to:
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Citizens Advice
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Age UK
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Your local council’s welfare team
It’s your right to live with dignity in retirement — don’t let Pension Credit go unclaimed.