Pension Credit is the single most valuable benefit that pensioners most often miss. Hundreds of thousands of older people who could claim it do not, leaving billions of pounds unclaimed every year. As well as topping up a low income, it acts as a gateway to a long list of other help. This guide explains what Pension Credit is, the 2026/27 figures, who can claim, and why it is so important.
What Pension Credit is
Pension Credit is a means-tested benefit that tops up the income of older people on a low income to a guaranteed minimum level. It is separate from the State Pension, and you can receive it on top. It comes in two parts: Guarantee Credit, which brings your income up to a minimum, and Savings Credit, a smaller extra amount for some people who saved towards their retirement. It is not taxable.
The 2026/27 figures
For 2026/27, Guarantee Credit tops up your weekly income to £238.00 if you are single, or to £363.25 for a couple. If your income is below these levels, Pension Credit can make up some or all of the difference. Savings Credit, which is only available to people who reached State Pension age before 6 April 2016, is worth up to around £17.96 a week for a single person and £20.10 for a couple. There are also higher amounts for people with disabilities, carers and certain housing costs.
Who can claim
You can claim Pension Credit if you have reached State Pension age and live in England, Scotland or Wales, and your income is low enough. If you have a partner, your income is assessed together, and you usually both need to have reached State Pension age, otherwise you may have to claim Universal Credit instead under the mixed-age couple rules. Even if your income seems slightly too high, it is worth checking, as additions for disability, caring or housing costs can lift the limit.
How savings are treated
Pension Credit is more generous on savings than many people expect. The first £10,000 of savings and capital is ignored completely. Above that, every £500 is treated as producing a small assumed income of £1 a week, rather than counting pound for pound. The value of your own home is not counted at all. This means having some savings does not necessarily rule you out, so do not assume you are ineligible.
Why it is so often missed
An estimated several hundred thousand eligible pensioners do not claim Pension Credit, often because they assume they will not qualify, or that a small State Pension or modest savings rules them out. Many are entitled to a top-up they never receive. Because even a small award opens the door to much more, the cost of not claiming can run to thousands of pounds a year, so it is always worth applying or getting a benefits check.
The gateway to other help
The most powerful feature of Pension Credit is what it unlocks. An award of even a few pence a week of Guarantee Credit can passport you to a chain of other help, including Council Tax Reduction, full help with rent through Housing Benefit, free NHS dental treatment and help with glasses, the Warm Home Discount, Cold Weather Payments, and a free TV licence if you are 75 or over. Together, this extra help is often worth far more than the Pension Credit itself.
Pension Credit and Winter Fuel
Pension Credit also matters for the Winter Fuel Payment. While the Winter Fuel Payment is now paid more widely, people on Pension Credit are protected and receive it without the income clawback that can apply to better-off pensioners. So if you are on a low income and not claiming Pension Credit, you could be missing out both on the credit itself and on the security it gives around winter heating help.
How to claim
You can claim Pension Credit by phone on the Pension Credit claim line, online, or by post. You can apply up to four months before you reach State Pension age, and a claim can usually be backdated by up to three months if you were eligible during that time, so do not delay. You will need details of your income, savings and any housing costs. The claim takes around twenty minutes by phone.
Disability and carer additions
If you or your partner receive a disability benefit such as Attendance Allowance, or you care for someone, your Pension Credit can include extra amounts, such as a severe disability addition or a carer addition. These additions can mean you qualify even if you thought your income was too high, and they increase the amount you receive. This is another reason a proper benefits check is worthwhile rather than guessing.
What counts as income
For Pension Credit, your income includes your State Pension, other pensions, most earnings, and some other benefits, but importantly it does not count Attendance Allowance, PIP or DLA. This is why claiming a disability benefit can increase your Pension Credit rather than reducing it. Savings below £10,000 are ignored, and only a small assumed income is counted above that, so modest savings rarely rule you out.
Mixed-age couples
If you are part of a couple and one of you is over State Pension age while the other is under it, you are a mixed-age couple, and the rules are different. In most cases you cannot start a new Pension Credit claim until both of you have reached State Pension age, and you would claim Universal Credit instead. This is an area where the rules catch people out, so if you are in a mixed-age couple, get advice about which benefit is right for you.
Reporting changes
Once you are getting Pension Credit, tell the Pension Service about changes in your circumstances, such as a change in your income, savings, or who lives with you. Reporting changes keeps your award correct and avoids an overpayment you would have to repay, or missing out on an increase you are due. As with other benefits, prompt and honest reporting is the simplest way to keep everything right.
Even a small award is worth claiming
People sometimes decide not to bother claiming Pension Credit because they work out they would only get a pound or two a week. That is a mistake, because even a tiny award of Guarantee Credit acts as a passport to the other help, which can be worth thousands of pounds a year. The amount of Pension Credit itself is almost beside the point; it is the door it opens that matters most, so it is always worth claiming if you qualify at all.
In short
Pension Credit tops up a low income and unlocks a great deal of other help, yet it is widely unclaimed. If you are over State Pension age on a modest income, it is always worth checking whether you qualify, even for a small amount.
Where to get help
Free help to check and claim Pension Credit is available from Citizens Advice, Age UK and your local advice service, and a benefits calculator can give you an idea in minutes. Given how much Pension Credit unlocks, this is one of the most worthwhile checks a pensioner household can do. To make the most of the disability addition, see our guide to Attendance Allowance.
