Pension Credit

Pension Credit is a means-tested benefit that tops up your weekly income if you are over State Pension age (currently 66) and your income is below a certain level. It is one of the most underclaimed benefits in the UK — an estimated 850,000 eligible households do not claim it, missing out on an average of £3,900 per year. The Department for Work and Pensions actively encourages people to check their eligibility.

Pension Credit comes in two parts. Guarantee Credit tops up your weekly income to a minimum level — currently £218.15 for single people and £332.95 for couples. If your income (including State Pension, private pensions, and most other income) is below this level, the difference is paid to you. Savings Credit is an extra payment for people who have saved some money towards their retirement, such as a private pension. It is worth up to £17.01 per week for single people or £19.04 for couples.

Savings do not automatically disqualify you. For every £500 of savings above £10,000, just £1 per week is added to your assessed income. This means someone with £20,000 in savings would have only £20 per week added to their income — they could still qualify. Additional amounts can be added if you have a severe disability, are a carer, have housing costs, or are responsible for a child.

Pension Credit is widely known as a "gateway benefit" because even receiving a small weekly amount can unlock substantial additional support. Pension Credit Guarantee Credit can qualify you for: full Council Tax Reduction (potentially saving over £1,000/year), Warm Home Discount (£150/year off electricity), free NHS dental treatment and sight tests, Cold Weather Payments (£25 for each 7-day period of very cold weather), free TV licence if aged 75 or over, and full Housing Benefit. You can backdate your claim by up to 3 months.