Pension Credit: Are You Missing Out on Extra Money?

Around one in three people who qualify for Pension Credit never claims it. That's hundreds of thousands of households across the UK missing out on money they're entitled to, often because they assume they won't be eligible, or because the benefits system feels too complicated to navigate. If you're 66 or over and your income feels stretched, there's a real chance this applies to you. 💚

This guide explains what Pension Credit is, who qualifies, how much you could receive, and how to claim it in straightforward steps.

1. What Pension Credit actually is

Pension Credit is a government benefit designed to top up your weekly income if it falls below a certain level. It is separate from the State Pension, and you don't need to be on a very low income to qualify. People with modest savings or a small private pension are often still entitled.

There are two parts. Guarantee Credit tops up your weekly income to a minimum level set by the government each year. Savings Credit is an older element available only to people who reached State Pension age before 6 April 2016, and it rewards those who saved a little towards their retirement.

You don't need to qualify for both. Most people receive Guarantee Credit only, and that's where the biggest financial difference is.

Simple action: Use the Pension Credit calculator on Gov.uk right now. It takes about five minutes and will tell you whether you're likely to qualify.

2. Who qualifies

To be eligible you need to be State Pension age (currently 66) or over and live in England, Scotland, or Wales. If you have a partner, they must also be 66 or over, unless you were already claiming as a couple before May 2019.

Your income is assessed, including your State Pension, any private or workplace pension, and savings above £10,000 (every £500 over that threshold counts as £1 of weekly income). Savings below £10,000 are not counted at all.

You can still qualify if you own your home, have some savings, or receive other income. The eligibility threshold is higher than most people expect.

💡 Tip: If you receive Carer's Allowance, have a disability, or care for a grandchild, your threshold may be higher than the standard rate, meaning you can qualify on a larger income.

3. How much you could get

Guarantee Credit tops up your weekly income to at least £227.10 if you're single, or £346.60 if you're a couple. If your income is already close to that level, your payment will be smaller, but still worth having. Check Gov.uk for the latest figures, as these are reviewed every April.

Savings Credit pays up to around £17.68 a week if you're single, or £19.77 if you're a couple, for those who reached State Pension age before April 2016.

Example: If you're single and your weekly income from the State Pension and a small workplace pension comes to £190, Guarantee Credit would top it up to £227.10, adding around £37 a week. Over a year, that's nearly £1,900.

4. What Pension Credit unlocks

This is where it becomes particularly valuable. Claiming Pension Credit acts as a gateway to a range of other benefits you may not know you're entitled to.

With Pension Credit, you may also be eligible for:

• Free TV licence if you're 75 or over
• Housing Benefit to help with rent costs
• Council Tax Reduction from your local council
• Warm Home Discount, a one-off reduction on your electricity bill each winter
• Cold Weather Payment during periods of very cold weather
• Free NHS dental treatment, glasses, and help with hospital travel costs

For some households, the value of these additional benefits adds up to more than the Pension Credit payment itself.

5. How to claim

You can apply by phone or online. For most people, the easiest route is to call the Pension Credit claim line on 0800 99 1234, free to call Monday to Friday, 8am to 6pm. An adviser will guide you through the application, and your claim can be backdated by up to three months.

To apply online, visit the Pension Credit claim page on Gov.uk.

You'll need your National Insurance number, details of your income, savings and investments, and your bank account information. If you have a partner, you'll need their details too.

Simple action: Call 0800 99 1234 or visit the Pension Credit claim page on Gov.uk. Even if you're unsure you qualify, checking costs nothing, and not checking could cost you a great deal.

If there's one thing worth doing this week, it's finding out whether Pension Credit applies to you. It takes ten minutes, it's completely free, and for many people it turns out to be one of the most worthwhile things they've ever done. You've earned this. 💛

Start with the Pension Credit calculator on Gov.uk. For more guides on making the most of your money in later life, explore Una's Money & Finance guides or sign up to our newsletter.