Sharon Cyrus
Pension Credit is a vital means-tested benefit that helps older adults supplement their income, ensuring they have enough to cover essential living expenses.
In 2025/26, approximately 1.4 million pensioners in Great Britain are expected to receive an average of £4,300 in additional support through this benefit.
However, around 760,000 eligible pensioners are missing out on the State Pension top-up, despite qualifying for it.
The Department for Work and Pensions (DWP) has estimated that many eligible individuals are not claiming Pension Credit, prompting a renewed awareness campaign this year.
Who Is Eligible for Pension Credit?
Pensioners who are married with a combined weekly income under £346, or single pensioners earning less than £227.10, may qualify for Pension Credit.
Many seniors mistakenly believe that owning their own home or having savings disqualifies them from applying for means-tested benefits.
However, even receiving a £1 per week award can help them access additional support for things like housing costs, heating bills, and Council Tax.
DWP’s Ongoing Awareness Campaign
To ensure that pensioners are aware of their eligibility, the DWP will continue to promote its awareness campaign throughout the year.
The Department is urging pensioners to check whether they qualify for Pension Credit and submit their claims accordingly.
Processing Pension Credit Claims
Recent reports reveal that the DWP is processing nearly 78% of new Pension Credit claims within the target timeframe of 50 working days (approximately 10 weeks).
This efficiency means that pensioners who apply for the benefit this month can expect to receive their first payments, including any back payments, by July, helping ease financial strains.
How Pension Credit Works
Pension Credit aims to top up your income if it falls below a certain threshold. The amount of support you receive depends on whether you’re single or in a relationship:
- Single pensioners: Your weekly income can be topped up to £227.10.
- Couples (married or cohabiting): Your joint weekly income can be topped up to £346.60.
Even if your income is above the threshold, you may still qualify if you face certain circumstances, such as having a disability, being a carer, or having housing expenses.
What Counts as Income?
Income includes:
- State Pension
- Other pensions
- Earnings from employment or self-employment
- Most social security benefits (e.g., Carer’s Allowance)
However, certain benefits and savings are excluded from being counted as income, such as:
- Disability Living Allowance
- Pension Age Disability Payment
- Personal Independence Payment (PIP)
- Winter Fuel Allowance
- Housing Benefit
- Council Tax Reduction
- Attendance Allowance
- DWP Christmas Bonus
- Child Benefit
Impact of Savings on Pension Credit
If your savings and investments are under £10,000, they do not affect your eligibility for Pension Credit.
However, for every £500 over this threshold, £1 is added to your weekly income for calculation purposes. For example, if you have £11,000 in savings, it will be considered as £2 of income per week.
Checking Your Eligibility for Pension Credit
There are multiple ways to check if you qualify for Pension Credit:
- Online: Use the Pension Credit calculator on GOV.UK to quickly assess your eligibility and potential benefit amount.
- By Phone: Call the Pension Credit helpline at 0800 99 1234, available from 8 am to 6 pm, Monday to Friday.
It is crucial for all older adults—whether single, married, or cohabiting—to verify that they are receiving all the financial support available to them this year.
By ensuring they claim Pension Credit, pensioners can bolster their income and ease the financial pressures of the ongoing cost-of-living crisis.
FAQs
What is Pension Credit?
Pension Credit is a means-tested benefit that provides financial support to older adults with low incomes, ensuring they have enough to meet basic living expenses.
How do I check if I’m eligible for Pension Credit?
You can use the online Pension Credit calculator on GOV.UK or call the Pension Credit helpline at 0800 99 1234 for assistance.
Can I receive Pension Credit if I have savings?
Yes, having savings doesn’t automatically disqualify you. If your savings are below £10,000, they won’t affect your eligibility. However, savings above this threshold will be considered as income for calculation purposes.