Pension Credit Overview

Pension Credit has two parts:

Guarantee Credit tops up your weekly income to a minimum guaranteed level — £218.15 for a single person and £332.95 for a couple (2024–25). If your income (including State Pension and other pensions) is below this level, Pension Credit makes up the difference. There is no upper savings limit, but savings above £10,000 are treated as generating a notional weekly income of £1 for every £500 above that figure.

Savings Credit is an additional amount for people who have made some provision for their retirement beyond the basic State Pension. It is only available to people who reached State Pension age before 6 April 2016.

In addition to topping up income, Guarantee Credit recipients may also receive additional amounts for disabilities, caring responsibilities, or severe disability.

Beyond the direct income top-up, receiving Guarantee Credit automatically entitles you to:

• Winter Fuel Payment (£200 or £300 depending on age) — from 2024–25, restricted to Pension Credit recipients and those on other means-tested benefits
• Full Council Tax Support — up to 100% reduction of your council tax bill
• Free NHS dental treatment, eye tests, and vouchers for glasses
• Cold Weather Payments of £25 for each period of very cold weather
• Housing Benefit at the full eligible rate if you rent
• Free TV licence if aged 75 or over

For many pensioners on a low income, the passported benefits are worth significantly more than the direct Pension Credit top-up itself. This makes claiming even more important if your income is only slightly below the threshold.

You can claim Pension Credit by:

• Phone: Call the Pension Credit claim line on 0800 99 1234 (Monday to Friday, 8am to 6pm). You can make a claim over the phone and they will fill in the form for you.
• Online: Via the GOV.UK Pension Credit claim page.
• Post: Download and complete a claim form from GOV.UK and post it to the Pension Service.

You will need your National Insurance number, information about your income (including State Pension, occupational pensions, and any other income), bank account details, and details of any savings or investments. You can also claim up to four months before you reach State Pension age, so your award starts as soon as you become eligible.

Pension Credit can be backdated for up to three months if you were eligible during that period. If you think you may have been entitled in recent months but did not claim, mention this when you apply.

Savings Credit is an additional element of Pension Credit available only to people who reached State Pension age before 6 April 2016. It rewards people who have made modest provision for retirement beyond the basic State Pension, such as through a small occupational pension or savings income.

The maximum Savings Credit is £17.01 per week for single people and £19.04 for couples (2024/25 rates). You may receive Savings Credit on its own or alongside Guarantee Credit. The calculation is complex — it depends on how much your qualifying income exceeds the Savings Credit threshold (£189.80 for singles, £301.22 for couples). Contact the Pension Service or Citizens Advice for help checking your eligibility.

Pension Credit is a gateway to a wide range of other support. Receiving Pension Credit (even a small amount) automatically qualifies you for full Council Tax Reduction, free NHS dental treatment, free NHS prescriptions, help with NHS travel costs, Cold Weather Payments, and the Warm Home Discount. Since the 2024 Winter Fuel Payment restriction, Pension Credit also remains the key qualifying benefit for Winter Fuel Payments of £200 or £300.

The government estimates that around 880,000 eligible pensioners do not claim Pension Credit, missing out on an average of £3,500 per year. If you receive even £1 per week of Pension Credit, the passported benefits can be worth significantly more. You can check your eligibility and apply online at GOV.UK, by phone on 0800 99 1234, or by post. Claims can be backdated up to 3 months, so apply as soon as possible.