Thousands of UK pensioners are missing out on a vital financial lifeline, as Pension Credit could increase their income by up to £4,200 per year. This government-backed benefit aims to help older people on low incomes by topping up their weekly earnings to a minimum level.
Despite its benefits, an estimated 760,000 eligible pensioners have yet to claim Pension Credit, which can also unlock additional perks such as free TV licences, winter fuel payments, and council tax reductions.
With rising living costs, the Department for Work and Pensions (DWP) is urging pensioners to check their eligibility and apply. Here’s what you need to know about Pension Credit and how you can claim this valuable financial support.
What is Pension Credit?
Pension Credit is a means-tested benefit designed to boost the income of low-income pensioners. It consists of two main components:
1. Guarantee Credit
- Ensures pensioners have a minimum weekly income of:
- £218.15 per week for single individuals
- £332.95 per week for couples
- If your total weekly income is below these amounts, Pension Credit will top it up to these levels.
2. Savings Credit (Only for those who reached State Pension age before April 6, 2016)
- Provides additional money for those who saved for retirement, such as through a private pension.
- The maximum extra payments are:
- £17.01 per week for single pensioners
- £19.04 per week for couples
Who is Eligible for Pension Credit?
You may qualify for Pension Credit if:
✔ You have reached State Pension age (currently 66 for both men and women).
✔ Your total weekly income is below £218.15 (single) or £332.95 (couples).
✔ You live in England, Scotland, or Wales (Northern Ireland has a separate system).
Your income includes:
- State Pension
- Other pensions (private or workplace pensions)
- Earnings from employment or self-employment
- Most benefits (except Attendance Allowance, Personal Independence Payment, or Disability Living Allowance, which don’t count)
Important: If you own your home, you can still qualify—your home’s value is not counted as part of your savings.
Additional Benefits of Pension Credit
Pension Credit is more than just an income top-up—it also opens the door to other benefits, including:
1. Free TV Licence
- If you’re aged 75 or over and receive Pension Credit, you can get a free TV licence worth £159 per year.
2. Council Tax Reduction
- Many pensioners can get a discount or even full exemption from council tax.
3. Free NHS Dental Treatment & Help with Health Costs
- Includes free dental treatment, prescriptions, and glasses.
4. Warm Home Discount
- A £150 discount on your electricity bill during winter.
5. Cold Weather Payments
- An extra £25 for every 7-day period of freezing temperatures between November and March.
6. Housing Benefit
- If you rent your home, you may get additional financial support for your rent payments.
How to Apply for Pension Credit
Applying for Pension Credit is quick and easy. You can apply in three ways:
By Phone
- Call 0800 99 1234 (Monday to Friday, 8 AM to 6 PM)
Online
- Apply through Gov.uk Pension Credit
By Post
- Download the application form from the government website or request one by phone and mail it back.
What You Need to Apply:
- National Insurance number
- Bank account details
- Income, savings, and investment details
- Information about pensions and other benefits
Even if you’re not sure if you qualify, it’s worth applying! Some pensioners may still be eligible for a small amount, which can grant access to extra benefits.
Why Are So Many Pensioners Missing Out?
Despite its benefits, Pension Credit is massively underclaimed, with an estimated £2.1 billion in unclaimed funds. Many pensioners wrongly assume they don’t qualify because:
- They own their home (but homeownership doesn’t affect eligibility).
- They have savings (but only amounts over £10,000 affect payments).
- They receive a small private pension (but this might not disqualify them).
The DWP has launched a national awareness campaign to encourage more pensioners to claim the support they are entitled to.
Final Thoughts
Pension Credit can provide a life-changing financial boost of up to £4,200 per year for single pensioners, helping them manage living costs and gain access to additional support.
With over 760,000 eligible pensioners still not claiming, the government is urging those who qualify to apply as soon as possible.
If you or someone you know is eligible, don’t miss out—apply today!
Are you or a family member eligible for Pension Credit? Let us know your experience in the comments below!
This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.
A senior at Yale-NUS College with interests in developmental and labour economics, as well as creative non-fiction and poetry. Currently, I’m studying as an Economics major and an Arts and Humanities minor (focusing on Creative Writing) with heavy involvement in the Singaporean journalism scene and involved in research on economic history and educational policy. I’m working as an author for SKC News, Yale-NUS’ student publication, as a writer for Wingspan, Yale-NUS’ alumni magazine, and as a tutor for the NUS Libraries Writer’s Centre. | Linkedin