Are you missing out on Pension Credit? How to claim the benefit worth £4,500 a year
Hundreds of thousands of eligible households are still failing to apply for Pension Credit. We explain who qualifies for the benefit and how to apply.
The number of claims for Pension Credit has fallen year-on-year – and hundreds of thousands of families are still missing out on the benefit.
The Department for Work and Pensions (DWP) received 211,125 Pension Credit applications in 2025/26, latest data shows – a 34% decrease from 321,035 in 2024/25.
In 2025/26, the DWP cleared and awarded 138,165 Pension Credit claims – a 24% drop from 180,970 in 2024/25.
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The fall in applications is likely because of a surge in people applying for the benefit the year before, after the government controversially narrowed eligibility rules for the Winter Fuel Payment. It meant, in winter 2024, only those on certain means-tested benefits, including Pension Credit, could get the payment.
Applications for Pension Credit appear to now be dropping back to pre-2024 levels.
However, up to 910,000 pensioner households are estimated to be eligible for the benefit but not claiming it, the government says.
David Brooks, head of policy at consultancy Broadstone, says: “The sharp rise in Pension Credit claims following the government’s decision to link Winter Fuel Payments to Pension Credit eligibility shone a helpful spotlight on just how many retirees were missing out on valuable support to which they were entitled.
“However, as the issue declined in salience, claims activity is now falling back towards lower, more normal levels and there is a risk that awareness once again fades.”
What is Pension Credit?
- Pension Credit is a government benefit worth around £4,500 a year
- You must have reached state pension age to qualify, among other eligibility rules
- Once you start claiming Pension Credit you can also qualify for other benefits
- You can check Pension Credit eligibility using the online Pension Credit calculator
Pension Credit is worth £4,500 a year on average, but could be worth more to certain households.
Anyone who is unsure whether they or a loved one is entitled to Pension Credit can check using the government's online Pension Credit calculator.
It is separate from the state pension, and paid to people of state pension age on low incomes, even if they have savings, a personal or workplace pension, or own their own home.
The benefit is made up of two parts: guarantee credit and savings credit. The former tops up your pension income to a certain level. The latter is only available to those who reached state pension age before 6 April 2016 and had some money saved for retirement, for example in a personal or workplace pension.
Even if Pension Credit will only provide a small amount of money to you, it’s worth claiming as it means you will qualify for a host of other benefits:
- Support for mortgage interest (SMI) if you own the property you live in
- Housing benefit if you rent the property you live in
- Council tax reduction
- A free TV licence if you’re aged 75 or over
- Help with NHS dental treatment, glasses and transport costs for hospital appointments
- Cold Weather Payments
- £150 Warm Home Discount
- Christmas bonus (only for those who receive the guarantee element of Pension Credit)
- A discount on Royal Mail redirection service for those moving home
The Warm Home Discount was previously limited to those on the guaranteed element of Pension Credit, or those receiving the savings element who had high energy costs, but Labour has widened the scheme.
Individuals on Pension Credit, who are the named billpayer in their household, get the £150 discount off their energy bills. Do note, most major energy suppliers are signed up to the Warm Home Discount scheme, but not all. You can find the full list of participating firms on gov.uk.
How much is Pension Credit worth?
- Basic Pension Credit tops up a single pensioner’s weekly income to £238
- For couples, Pension Credit is worth an extra £363.25 a week
- You may qualify for additional Pension Credit if you have other responsibilities
The minimum guarantee for Pension Credit – the minimum amount that someone on Pension Credit will receive – rose by 4.8% in April 2026, thanks to the state pension triple lock. This is a mechanism which increases the state pension by the highest out of inflation, average earnings growth and 2.5%.
Pension Credit tops up a pensioner’s weekly income to £238 if they're single. For couples, it’s £363.25.
You may be entitled to extra amounts if you have other responsibilities and costs. For those with a severe disability, a further £86.05 per week is available. If both members of a couple qualify, the rate is £172.10 per week. You are classed as having a disability if you receive one of the following benefits:
- Attendance Allowance
- The middle or highest rate from the care component of Disability Living Allowance
- The daily living component of Personal Independence Payment (PIP)
- Armed Forces Independence Payment
- Daily living component of Adult Disability Payment (ADP) at the standard or enhanced rate
If you care for another adult, you could receive an extra £48.15 per week, provided you get Carer’s Allowance (or you’ve claimed Carer’s Allowance but are not being paid because you receive another benefit that pays a higher amount). If you and your partner have both claimed or are currently receiving Carer’s Allowance, you can both receive this extra amount. It is known as the Carer’s Addition.
For those responsible for a child or young person, you could get a further £69.98 a week (which increases to £81.07 a week for the first child if they were born before 6 April 2017). The child or young person must normally live with you and be aged 19 or younger. If the child or young person is disabled, you may get another payment.
The final top-up helps with housing costs. An extra payment may be made to cover ground rent if your home is leasehold, or to cover service charges. The above payments are all known as "guarantee credit", and form one element of Pension Credit.
The other part of Pension Credit is savings credit, which is worth up to £17.96 a week if you’re single, or up to £20.10 if you have a partner.
Who is eligible for Pension Credit?
- You must live in England, Scotland or Wales and have reached state pension age
- Pension Credit eligibility and the amount you receive depends on total household income
- You can claim Pension Credit four months before reaching state pension age (66)
You must live in England, Scotland or Wales and have reached state pension age (currently 66, but rising to 67 between April 2026 and April 2028) to be eligible for Pension Credit. When applying for guarantee credit, your income is calculated; if you have a partner, your joint income will be calculated.
The DWP defines income as your state pension and other pensions (even if they’ve been deferred), earnings from a job or self-employment, and most benefits.
However, not all benefits are counted as income. Attendance Allowance, Child Benefit, Disability Living Allowance, Personal Independence Payment, Housing Benefit, council tax reduction and the Christmas bonus are excluded.
Your savings and investments are also taken into account, which includes shares and any property you own (apart from the home you live in). If you have £10,000 or less, this will not affect your eligibility for Pension Credit.
If you have more than £10,000, every £500 over £10,000 will count as £1 income a week. So, if you have £11,000 in savings and shares, this counts as £2 income a week. If your income is below £238 a week then guarantee credit will top you up to that amount. If you’re claiming as a couple and your weekly income is below £363.25, it will be topped up to that level.
The criteria to claim savings credit is different. You can only access it if you reached state pension age before 6 April 2016, and you have some savings and/or a private pension. There isn’t a savings limit, however, if you have over £10,000 in savings, this will affect how much you receive. You might still get some savings credit even if you do not get the guarantee credit part of Pension Credit.
How to claim Pension Credit
- You can claim Pension Credit online, via the helpline (0800 99 1234) or by post
- To claim Pension Credit you’ll need your NI number and full details of household income
- You can backdate your claim for Pension Credit by up to three months
- If your Pension Credit claim fails, you can ask for a "mandatory reconsideration"
You can apply for Pension Credit in several ways. Options include applying online on the government website, phoning the helpline (0800 99 1234), or submitting an application by post. If you haven’t reached state pension age yet, you can still apply up to four months before this date.
You’ll need your National Insurance number when you apply, plus information about your income, savings and investments. If you have a partner, you’ll need the same details about them too.
Government figures show that the majority of people apply for Pension Credit online or over the phone.
Sarah Pennells, consumer finance specialist at Royal London, comments: "You can backdate your claim for Pension Credit by up to three months, and the sooner you claim, the sooner you could start receiving payments. Not only that, but, if you’re entitled to Pension Credit, you’ll be able to get extra help with costs such as rent and council tax, which could make a big difference."
If you apply for Pension Credit and your claim is turned down, you can ask the Pension Service to look at your claim again if you think the decision is wrong. Asking them to change their decision is called a "mandatory reconsideration". It’s free to do and you don’t need to use a solicitor.
Some of the reasons for a claim being refused include having too much income, not being a UK resident, failure to provide all requested information and not being the right age.
Why have so many pensioners failed to claim Pension Credit in the past?
The eligibility criteria for Pension Credit is complex. This could be putting some pensioners off claiming it, although there are a number of other barriers which could be stopping people from putting in an application.
Some pensioners believe they would get such a small amount of Pension Credit, it’s not worth applying for, DWP research suggests.
Others mistakenly believe they won’t qualify if they have savings, while some think if they own their own home they’re not eligible for the benefit.
Some pensioners who have previously applied for Pension Credit and been rejected think they will never be eligible – this is false. Their personal circumstances could have changed, making them eligible.
Emma Walker, director at retirement firm Just Group, says: “Pension Credit is the key ‘top-up’ benefit for low-income pensioners, but it’s not well understood, particularly the eligibility criteria and the access it gives to a range of other benefits.”
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Laura Miller is an experienced financial and business journalist. Formerly on staff at the Daily Telegraph, her freelance work now appears in the money pages of all the national newspapers. She endeavours to make money issues easy to understand for everyone, and to do justice to the people who regularly trust her to tell their stories. She lives by the sea in Aberystwyth. You can find her tweeting @thatlaurawrites