Everything You Need to Know About Pension Credit

Everything You Need to Know About Pension Credit

 

Pension Credit is one of the most under claimed benefits in the UK, despite being a lifeline for many older adults. If you’re over State Pension age and living on a low income, it could boost your weekly income and give you access to a whole range of extra support.

Yet around 880,000 households across the UK are thought to be missing out. This guide explains what Pension Credit is, who can get it, how much it’s worth and how to apply.

 

 

What Is Pension Credit?

 

Pension Credit is a means-tested benefit for people over State Pension age who have low income. It comes in two parts:

 

  • Guarantee Credit which tops up your weekly income to a minimum threshold
  • Savings Credit which is a small extra amount for those who saved some money towards retirement, such as a private pension

 

You might qualify for one or both parts. Savings Credit is being phased out and is only available to those who reached State Pension age before 6 April 2016.

 

 

Who Can Apply for Pension Credit?

 

You can apply for Pension Credit if:

 

  • You live in England, Scotland or Wales
  • You’ve reached State Pension age, which is currently 66

 

If you’re from the EU, EEA or Switzerland, you and your family usually need settled or pre-settled status under the EU Settlement Scheme to get Pension Credit.

 

If you have a partner, you must include them on the application too. You’ll qualify if:

 

  • You've both reached State Pension age, or
  • One of you is already getting Housing Benefit for people over State Pension age

 

 

older couple sat on the sofa together reading documents

 

 

What Is Guarantee Credit?

 

Guarantee Credit tops up your weekly income to a minimum standard if you’re over State Pension age and have a low income.

 

If you have a partner, your income is assessed together when calculating your entitlement.

 

For the 2025/6 financial year your income is topped up to at least:

  • £227.10 per week for single people
  • £346.60 for a couple

 

You could also receive an additional weekly amount for specific situations:

 

  • £46.40 if you’re a carer
  • £82.90 if you’re disabled
  • £67.42 if you’re responsible for children or young people
  • An extra £36.54 if the child or young person is disabled or £114.12 in certain circumstances
  • An extra amount to cover certain housing costs

 

 

What Is Savings Credit?

 

Savings Credit is an extra amount of money you may get on top of Guarantee Credit. It’s being phased out and you can only claim it if:

 

  • You reached State Pension age before 6 April 2016
  • You saved some money for retirement, for instance a personal or workplace pension

 

For 2025/6, Savings Credit can give you up to:

  • £17.30 if you’re single
  • £19.36 if you have a partner

 

Even if you’re not eligible for the Guarantee Credit part of Pension Credit, you might still get some Savings Credit.

 

The exact amount you receive depends on your income. Investments, savings or capital of more than £10,000 will also affect how much you receive.

 

 

What Counts as Income?

 

When you apply, your income is assessed. This includes:

 

  • State Pension
  • Other pensions
  • Earnings from employment and self-employment
  • Most social security benefits, like Carer’s Allowance

 

However, not all benefits are counted, including:

 

  • Attendance Allowance
  • Adult Disability Payment
  • Child Benefit
  • Disability Living Allowance
  • Pension Age Disability Payment
  • Personal Independence Payment
  • Winter Fuel Payments
  • Housing Benefits and Council Tax Reduction

 

If you’re entitled to a workplace or personal pension but you haven’t claimed it yet, the amount you’re expected to receive is still counted as income. The same applies if you’ve deferred your State Pension.

 

 

older couple getting financial advice

 

 

What About Savings and Investments?

 

If you have £10,000 or less in investments or savings, it won’t affect your entitlement.

 

If you have more than £10,000, every £500 over the limit is treated as £1 of income per week.

 

 

How Can I Apply for Pension Credit?

 

You can start your application up to 4 months before you reach State Pension age.

 

Alternatively, you can apply any time after you’ve reached State Pension age, but your application can only be backdated by 3 months.

 

You can apply:

 

  • Using the online service
  • By phone via the Pension Credit claim line: 0800 99 1234
  • By post using a paper form from Gov.uk

 

To apply, you’ll usually need:

 

  • Your National Insurance number
  • Bank account details
  • Information about your income, pensions, savings and investments
  • Details about your partner if you have one

 

 

What Are the Other Benefits of Pension Credit?

 

The average Pension Credit award is worth over £3,900 a year. Pension Credit can also unlock other support, including:

 

  • Help with NHS dental treatment, glasses and transport costs for hospital appointments
  • Housing benefit if you’re renting the property you live in
  • Support for mortgage interest if you own the property you live in
  • Winter fuel payment
  • Council tax discount
  • Free TV licence if you’re 75 or older
  • Support with heating costs via the Warm Home Discount Scheme
  • Discounted Royal Mail redirection service if you’re moving house

 

 

HelpAlert Support

 

Knowing you’ve secured the financial help you deserve can be a huge relief. Practical support for safety and confidence matters too.

 

At HelpAlert, our personal alarm service helps older adults live independently, with 24/7 access to a trained, UK-based response team.

 

Try our free 14-day trial. No contracts, no pressure, just a small delivery fee.

 

Explore options on our website or call 01273 055049 to speak with our friendly team.

 

 

CHOOSE YOUR ALARM
Back to blog