Why Pension Credit matters
Pension Credit is often called a "gateway benefit" because receiving it can unlock many other forms of valuable support. Council Tax Reduction can save over £1,000 per year. The Warm Home Discount provides £150 per year off your electricity bill. Free NHS dental treatment and sight tests can save hundreds. A free TV licence (for those 75 or over) saves over £150 per year. Full Housing Benefit can cover your entire rent. Yet an estimated 850,000 eligible households do not claim Pension Credit — missing out on an average of £3,900 per year. That is approximately £3.5 billion going unclaimed nationwide. Many people assume they will not qualify, but the eligibility calculation is more generous than most expect. Even a small weekly amount of Pension Credit — as little as £1 per week — can open the door to all of these additional benefits, which together can be worth thousands of pounds per year. This is why checking your eligibility is so important, even if you think the Pension Credit amount itself would be small.
Who may be eligible?
You may be eligible if you are over State Pension age (currently 66) and your weekly income is below the Pension Credit threshold. For single people, the threshold is approximately £218.15 per week. For couples, it is approximately £332.95 per week. Your income includes State Pension, private pensions, earnings from employment, and most other regular income. Savings over £10,000 are taken into account, but do not automatically disqualify you. For every £500 of savings above £10,000, only £1 per week is added to your assessed income. So someone with £20,000 in savings has just £20 per week added — they could still qualify if their total income remains below the threshold. Additional amounts may be added to your threshold if you have a severe disability (increasing the threshold by up to £81.50/week), if you are a carer (up to £45.60/week extra), or if you have housing costs. These additional amounts mean that some people with incomes that seem above the basic threshold may still qualify.
How the calculation works
Pension Credit compares your total assessed income against the threshold (called the "appropriate amount"). If your income is below the threshold, the difference is paid to you as Pension Credit Guarantee Credit. For example, if you are single with a weekly income of £180 and the threshold is £218.15, you would receive approximately £38.15 per week. Savings Credit is an additional component for people who have saved towards their retirement — for example, through a private or workplace pension. It rewards saving by providing up to £17.01 per week for single people or £19.04 for couples. The calculation for Savings Credit is more complex and depends on the interaction between your income and the savings threshold. The overall calculation can be complex, which is one reason why many eligible people do not claim. Factors such as disability premiums, carer additions, housing costs, and the savings calculation mean that many people who assume they do not qualify are actually eligible. Using a benefits calculator or calling the Pension Credit claim line is the most reliable way to check.
What Pension Credit can unlock
Receiving Pension Credit Guarantee Credit acts as a passport to a wide range of additional support. Here is what it may unlock: Full Council Tax Reduction — depending on your Council Tax band and area, this could save you over £2,000 per year. Warm Home Discount — a £150 annual discount on your electricity bill, applied automatically. Free NHS dental treatment, sight tests, and help with glasses and lens costs. Free TV licence if you are aged 75 or over (saving over £150/year). Cold Weather Payments of £25 for each 7-day period of very cold weather. Full Housing Benefit if you rent — potentially covering your entire rent. Additionally, Pension Credit can affect your eligibility for the Funeral Expenses Payment (help with funeral costs for a partner, child, or close relative), Christmas Bonus (a one-off £10 payment each December), and water bill discounts offered by some water companies. The total value of all these additional benefits typically far exceeds the Pension Credit payment itself.
How to claim
You can claim Pension Credit by calling the claim line on 0800 99 1234 (Monday to Friday, 8am to 6pm) or online at GOV.UK. The phone line is often the easiest route — the adviser can help you through the process and check whether you are likely to qualify. You will need your National Insurance number, details of your income (State Pension, private pensions, earnings), savings and investment details, and information about your housing costs. If you have a partner, you will need their details too. Always ask to backdate your claim by the full 3 months — there is no penalty for requesting this, and if you were eligible during the backdated period, you could receive a lump sum covering those 3 months. Processing typically takes 4 to 6 weeks. Once awarded, Pension Credit is usually ongoing, though you are expected to report significant changes in your circumstances.
Common reasons people miss out
Many people assume they will not qualify because they have savings or a private pension. However, the calculation is more nuanced than most expect — savings are treated generously, and additional amounts for disability and caring can significantly raise the threshold. Others do not realise they can claim as part of a "mixed-age couple" (where one partner is over State Pension age and the other is under). The rules for mixed-age couples changed in May 2019, but those already receiving Pension Credit at that time were allowed to continue. Some people confuse Pension Credit with the State Pension and assume they are already receiving it. They are separate benefits — you can receive both. Others feel embarrassed about claiming or believe the amount would be too small to bother. But even a small Pension Credit payment can unlock thousands of pounds in additional support through the gateway benefits it provides.
Related Benefit Pages
Pension Credit
Tops up weekly income for people over State Pension age.
Council Tax Reduction
Reduction on Council Tax for people on low income or receiving certain benefits.
Warm Home Discount
Annual discount on electricity bill for those on Pension Credit or low income.
Attendance Allowance
For people over State Pension age who need help with personal care.
Frequently Asked Questions
How much Pension Credit could I receive?
Will my private pension disqualify me?
Check what benefits you could be entitled to
Our free eligibility checker covers 20+ UK benefits. It takes around 15 minutes and there is no obligation.
Check eligibilityTrusted by 50,000+ people across the UK
Important: Benefits Robin is not affiliated with the DWP or UK Government. We provide information and assistance, not legal or financial advice. These are estimates based on your answers. Final decisions are made by the DWP.