Pension Credit is one of the most underclaimed benefits in the UK. It tops up the income of people over State Pension age to a minimum weekly level and — crucially since 2024 — is the gateway to the Winter Fuel Payment and various other benefits. Around 850,000 eligible households still aren't claiming it.
What Is Pension Credit?
Pension Credit has two parts: Guarantee Credit and Savings Credit. Guarantee Credit tops up your weekly income to a minimum level (£218.15/week for single people, £332.95/week for couples in 2026/27). Savings Credit is an extra payment for people who saved for retirement on top of the state pension — this part is being phased out for new claimants.
- Guarantee Credit minimum (2026/27): £218.15/week single, £332.95 couple
- Tops up income from State Pension, private pensions, and other sources
- Average award: ~£75/week = £3,900/year
- Also unlocks: Winter Fuel Payment, free dental treatment, Housing Benefit
- Applies to everyone over State Pension age with income below the thresholds
Who Qualifies?
You may qualify for Pension Credit if you are over State Pension age (66 in 2026) and your weekly income is below £218.15 (single) or £332.95 (couple). Savings and investments over £10,000 affect the calculation but don't automatically disqualify you. Even those with income slightly above the threshold sometimes qualify if they have a carer, are severely disabled, or have housing costs.
- Over 66 (State Pension age in 2026)
- Income below minimum threshold — check via calculator first
- Savings over £10,000: reduces Guarantee Credit by £1/week per £500 over £10,000
- Disabled or carer premiums can raise the qualifying threshold
- Mixed-age couples: different rules — check gov.uk
Do savings affect Pension Credit?
Yes, but savings don't automatically disqualify you. For every £500 of savings above £10,000, DWP assumes a notional income of £1/week. So £15,000 in savings reduces your credit by £10/week — you may still qualify.
Extra Benefits Unlocked by Pension Credit
Receiving Guarantee Credit (even a small amount) acts as a passport to several additional benefits that can be worth significantly more than the credit itself. These include: Winter Fuel Payment (since 2024 means-testing), free NHS dental treatment, free NHS eye tests, Housing Benefit (if renting), Council Tax Reduction, and Cold Weather Payments.
- Winter Fuel Payment: £200-£300 (since 2024, Pension Credit required)
- Free NHS dental treatment
- Free NHS eye tests and help with glasses
- Housing Benefit if renting
- Council Tax Reduction
- Free TV licence (if over 75)
- Cold Weather Payments
How to Claim
Pension Credit is claimed from the DWP. You can apply by phone (0800 99 1234), online, or by post. Claims can be backdated by 3 months if you were eligible earlier. If a pensioner you know hasn't claimed, Age UK has a friendly checking service and can help with applications.
- Phone: 0800 99 1234 (free helpline, Mon-Fri 8am-6pm)
- Apply online at gov.uk/pension-credit/how-to-claim
- Can be backdated 3 months
- Age UK benefits checker: 0800 678 1602
- Help with applications available from Citizens Advice and Age UK
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