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Experts warn that hundreds of thousands of pensioners could be missing out on as much as £4,200 annually due to not claiming Pension Credit. Around 700,000 retirees are believed to be unaware they qualify for this support.
This benefit, provided by the Department for Work and Pensions (DWP), is designed to help people over the State Pension age with low incomes cover essential living expenses.
What is Pension Credit?
Pension Credit is a means-tested benefit aimed at topping up the income of those who have reached State Pension age. Beyond providing financial assistance, it can also help with housing costs such as ground rent or service charges.
Additional support may be available for those who are carers, severely disabled, or responsible for children or young people.
Despite these benefits, a large proportion of eligible pensioners do not claim, leaving substantial financial assistance unclaimed.
Why is Pension Credit Underclaimed?
According to Rachel Vahey, head of public policy at AJ Bell, Pension Credit has “historically been underclaimed,” largely because people are unaware they qualify. She stresses that the benefit is not automatic—it requires a formal claim through the DWP.
She further advised:
“If you’re close to the income threshold, it’s worth applying anyway. The worst outcome is finding out you’re not eligible.”
Eligibility for Pension Credit
To qualify for Pension Credit, individuals must:
- Live in England, Scotland, or Wales.
- Be aged 66 or over (current State Pension age).
- Either they or their partner must be receiving housing benefits.
Income is assessed weekly and includes:
- State Pension
- Other pensions
- Earnings (employment or self-employment)
- Most social security benefits, e.g., Carer’s Allowance
Benefits not counted as income
- Adult Disability Payment
- Attendance Allowance
- Christmas Bonus
- Child Benefit
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Winter Fuel Allowance
- Housing Benefit
- Council Tax Reduction
Current Pension Credit Rates (2025)
| Category | Weekly Maximum |
|---|---|
| Single person | £227.10 |
| Couple | £346.60 |
Extra Payments (Guarantee Credit)
- Severe disability: +£81.50 per week
- Caring for another adult: +£45.60 per week
- Children/young people: £66.29 per week per child (£76.79 if first child born before 6 April 2017)
- Disabled child or young person: £35.93–£112.21 per week depending on severity
Savings Credit
Available only to those who reached State Pension age before 6 April 2016:
- Single person: up to £17.01 per week
- Couple: up to £19.04 per week
How Much Income Qualifies?
- Single pensioners with income below £227.10 per week (£11,800 annually) are likely eligible.
- Couples with income under £346.60 per week (£18,000 annually) may also qualify.
Even if income is slightly higher, eligibility might still apply, so it’s worth checking using the government’s online calculator.
How to Apply for Pension Credit
Emma Reynolds, Pensions Minister, highlighted that 90% of new applicants use the online or phone process, which takes an average of just 16 minutes.
Application options include:
- Online: via gov.uk website
- Telephone: 0800 99 1234
- Textphone: 0800 169 0133
Pension Credit is a vital benefit that could provide up to £4,200 annually to pensioners struggling with low incomes. However, with nearly 700,000 retirees not claiming, awareness is crucial. By applying—either online or by phone—pensioners can not only improve their financial stability but also unlock additional support like council tax reductions and free TV licences.
If you or someone you know is of State Pension age, it’s well worth spending a few minutes checking eligibility. The financial boost could make a significant difference.
FAQs
Yes. Owning your home does not prevent you from receiving Pension Credit if you meet the income and eligibility rules.
Pension Credit can provide access to free TV licences, council tax discounts, and help with NHS costs.
On average, it takes just 16 minutes using the government’s online form or over the phone.