Are you missing out on Pension Credit? How to claim the benefit worth up to £4,300

Thousands of pensioners continue to miss out on Pension Credit, despite being eligible for the top-up benefit.

Pension Credit is worth up to £4,300 a year (£3,900 a year on average), and unlocks access to other benefits like help with NHS costs, a free TV licence and Winter Fuel Payment.

Pension Credit applications have been rising ever since Rachel Reeves declared last summer that the Winter Fuel Payment, previously a universal benefit to all pensioners, would be means-tested.

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About 235,000 Pension Credit claims were made between the announcement in July 2024 and 23 February 2025, compared to 129,900 in the same 30-week period during 2023 and 2024.

The rush to claim created a backlog, with pensioners warned last year that it could take several months for their applications to be processed.

The Department for Work and Pensions (DWP) announced in February that it had processed "a record number of claims, reducing the number of applications yet to be cleared from its peak of 85,500 to just 33,700 by 23 February, which is in line with normal levels of Pension Credit claims waiting to be processed".

This has resulted in a record 117,800 applications being awarded – an increase of 64% – since the chancellor’s Winter Fuel Payment announcement compared to the same period last year.

Pension Credit tops up a retiree's income, and can be claimed even if you have a pension or own your own home.

It is one of the most underclaimed and misunderstood benefits. About a third of eligible people fail to claim.

According to the retirement specialist Just Group, many pensioner homeowners don't claim any of the benefits they are entitled to, such as Pension Credit and the council tax reduction.

Its research shows that retirees that own their home missed out on an average of £1,807 extra annual income last year.

We explain everything you need to know about Pension Credit, and the various ways to apply.

What is Pension Credit?

Pension Credit averages £3,900 a year, but could be worth more to certain households. It also unlocks access to other benefits, such as cold weather payments, help with NHS costs, the £150 Warm Home Discount Scheme - and from last year, the Winter Fuel Payment.

The Winter Fuel Payment was previously available to everyone of state pension age living in the UK.

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, and is available to those on low incomes. 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.

Caroline Abrahams, charity director at Age UK, comments: “Claiming Pension Credit is the main pensioner benefit that also qualifies people for a Winter Fuel Payment, so we really do urge anyone who is feeling the pinch to come forward and check if they’re eligible for extra help."

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 other benefits:

• Winter Fuel Payment
• 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 (only for those who get the guarantee element of Pension Credit, or are on a low income and have high energy costs)
• Christmas bonus (only for those who receive the guarantee element of Pension Credit)
• A discount on Royal Mail redirection service for those moving home

When is the deadline to apply for Pension Credit and receive the Winter Fuel Payment?

Many pensioners will be worried about losing their Winter Fuel Payment, given the energy price cap increased by 1% on 1 January, and the jumped by a further 6.4% in April.

It's worth checking if you qualify for Pension Credit, because if you do successfully apply, you will receive the Winter Fuel Payment automatically in future.

To get the Winter Fuel Payment, you must be eligible for Pension Credit, or another qualifying benefit, during the ‘qualifying week’. This will begin on the third Monday in September every year – for 2025 this will be 15-21 September.

It’s better to act sooner rather than later – it takes between six and eight weeks to process new Pension Credit claims, due to high volumes of applications, but it can be backdated by three months.

Why have so many people failed to claim Pension Credit in the past?

Pension Credit is one of the most underclaimed government benefits, with a complex eligibility criteria. Some pensioners assume that if they own their own home they won't qualify. This is incorrect, as they may be entitled to claim it. If they have savings or a pension, they may also qualify for Pension Credit.

Even those who do claim it may not be receiving as much money as they should. Some pensioners who receive Pension Credit may be missing out on extra money, due to not updating their financial information with the DWP. For example, if their savings reduce they could be entitled to a higher amount of Pension Credit.

One in 10 Pension Credit claimants are missing out on their share of around £100 million due to failing to provide the Department of Work and Pensions with accurate information, government figures released today (15 May) reveal.

Stephen Lowe, group communications director at Just Group, said: “About 10% of claimants did not get their full entitlement in 2024-25 compared to 8% the previous years. The amount being underclaimed was also higher at £100 million compared to £80 million previously.

“There are about 1.4 million claimants overall, suggesting 140,000 households missed out on an average of about £700, which is a significant sum for those struggling on low incomes.”

Lowe said the DWP put the underpayments down to claimants failing to provide accurate or up-to-date information, mainly in three areas – a reduction in financial assets, a non-dependant moving out, or a fall in income from private pensions.

“It’s important to understand what changes in circumstances can impact the amount of benefit being paid because the system relies on accurate information,” said Lowe.

Governments have run multiple awareness campaigns to encourage more people to claim the benefit. The DWP says it is exploring further options to "drive up claims by reaching the most isolated and poorest pensioners who are eligible for support". This includes "writing to all pensioners who make a new claim for Housing Benefit and who appear to be entitled to Pension Credit".

It also says it has updated the online claim form so it now takes just 16 minutes on average to apply for Pension Credit.

However, in September 2024, Abrahams at Age UK pointed out that despite numerous campaigns to drive the take-up of Pension Credit over the years, only 65% claim it "and the figure has never gone above 66% in the last decade".

She adds: “We would encourage anyone with an older person in their lives to strike up a conversation about the cost of bills and mention this extra help that might help them to cope, if they put in a claim.”

How much is Pension Credit worth?

Pension Credit rose 4.1% in April 2025, thanks to the state pension triple lock.

Pension Credit tops up a pensioner’s weekly income to £227.10 if you're single, or your joint weekly income to £346.60 if you have a partner.

But you may be entitled to extra amounts if you have other responsibilities and costs. For those with a severe disability, a further £82.90 a week is available. You must get one of the following benefits to qualify:

• 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 £46.40 a 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 the carer’s allowance, you can both receive this extra amount.

For those responsible for a child or young person, you could get a further £67.42 a week (which increases to £78.10 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 £17.30 a week if you’re single, or up to £19.36 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 (currently 66) 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 £218.15 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 £332.95, 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.

The eligibility criteria are complicated, and is likely to be one of the reasons why many pensioners don’t bother claiming.

You can use the government’s Pension Credit calculator to work out if you can claim and how much you’ll get. You’ll need to have details of your earnings, benefits, pensions, savings and investments. If you get stuck, call the helpline on 0800 99 1234 (Monday to Friday, 8am to 6pm).

How to claim Pension Credit

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, not claiming on time and not being the right age.