What is Pension Credit, and how can you check if you’re eligible?

Pension Credit is a tax-free financial benefit for pensioners who are on a low income. However, many people don’t realise they’re eligible to claim it.

According to the Department for Work and Pensions, in 2025, approximately 1.7% of eligible people failed to claim Pension Credit, worth a total of £100m.*

Read on to find out if you qualify for Pension Credit, how much you could receive, and the steps to make a claim.

The information provided here is for informational and educational purposes only and does not constitute financial advice. Please consult with a licensed financial adviser or professional before making any financial decisions. Your financial situation is unique, and the information provided may not be suitable for your specific circumstances. We are not liable for any financial decisions or actions you take based on this information.

The Pension Credit amount has increased slightly. From April 2025, weekly rates rose to £227.10 for single pensioners and £346.60 for couples.

The government introduced means testing for the Winter Fuel Payment in 2024, meaning only Pension Credit recipients (and some others) could apply. From winter 2025/26, however, provided the pensioner’s income is no more than £35,000, they will receive the Winter Fuel Payment automatically.

Some individuals may have been affected by the closure of the tax credit system in April 2025. Pensioners on lower incomes are now being directed to receive financial support through Pension Credit.

Pension Credit is an additional benefit you may be able to claim on top of your State Pension if you have retired and are over pension age. It’s available for all pensioners who meet the Pension Credit criteria, regardless of whether you’re single, widowed, or in a couple.  While awareness of the benefit has improved in recent years, around one in 10 Pension Credit claimants didn’t receive the full amount they were entitled to in 2024‑25*.

Pension Credit has two parts; Guarantee Credit and Savings Credit. In a nutshell, Guarantee Credit is for pensioners on a low income, while Savings Credit is an extra benefit you can claim if you’ve saved for your retirement.

Guarantee Credit tops up your income to a level set by the government. If you’re single and your weekly income is below £227.10 (2025/26), your Pension Credit will top you up to this amount. If you’re a couple and your joint income is below £346.60 per week, you’ll get a top-up to bring your combined income to this amount.

Savings Credit offers extra money if you’ve saved for your retirement (for example, with a workplace pension). It’s currently being phased out, but you may still be able to claim it if you reached the State Pension age before 6 April 2016.

There are two different income levels, known as the starting level:

£198.27 a week for single people

£314.34 a week for couples

• If your income is below the starting level, you don’t get Savings Credit.

• If your income is just above the starting level, the amount is calculated as 60% of the difference between your income and the starting level (up to the maximum allowed).

• If your income is much higher, the amount goes down, because some of it is taken off.

The idea is that you receive more Savings Credit the higher your income is (up to a point) because it shows you’ve saved for retirement.

The amount you may be able to claim in Pension Credit will depend on the following:

• Your current income. Pension Credit tops up low income to a government-set minimum.

• How much you’ve saved or invested

• If you’re a couple, the value of your combined income and savings

• Assessed Income Periods (AIPs). Once your income has been checked, you’ll receive the same weekly payment for a given period. Any small changes in your income won’t affect the payment.

Based on those factors, you’ll be topped up under Guarantee Credit or Savings Credit, or you could qualify for both.

You can search for a Pension Credit calculator to see what you could earn.

Pension Credit rates are set by the government every year. The 2025/26 Pension credit rates are as follows:

Guarantee Credit:

• £227.10 if you’re single

• £346.60 if you’re a couple

Savings Credit - a maximum of:

• £17.30 extra per week if you’re single

• £19.36 extra per week if you’re a couple

There are also circumstances in which you may be able to claim additional support. If you have a severe disability, for example, you could get an extra £82.90 a week. Carers are also entitled to additional support, worth up to £46.40 a week in 2025/26.

You can calculate how much Pension Credit you could receive by using the government’s online Pension Credit calculator.

Sarah is 79. She receives £180 per week from her State Pension and £25 per week from a workplace pension, giving her a total income of £205. The standard Guarantee Credit amount for a single person is £227.10, so her top-up is:

£227.10 - £205 = £22.10 per week.

Sarah is also eligible for Savings Credit. The starting level for Savings Credit is £198.27 for a single person. Her income is £205, which is £6.73 above the starting level. 

60% of that difference = £4.04 in Savings Credit.

In total, Sarah receives Pension Credit of £26.14.

To be eligible for Pension Credit, you must be living in the UK and have reached the State Pension age (currently 66 for both men and women). Pension Credit rules generally apply across the UK, but if you live in Northern Ireland, some processes are different. For guidance specific to Northern Ireland, see NI Direct. If you’re an EU, EEA, or Swiss national, you may still be eligible if you have settled or pre-settled status.

As a couple, you may only claim your Pension Credit if both partners have reached the State Pension age. Even if you own a home, you may still be eligible.

When claiming Guarantee Credit, if you’re at an eligible age but your weekly income is higher than the threshold mentioned above, you may still be eligible to claim if you meet any of the following criteria:

• You have a severe disability

• You are currently a carer

• You still have to pay housing costs, such as a mortgage

Only people who reached the State Pension age before 6 April 2016 are eligible for Savings Credit. However, if you’re a couple and only one of you reached the State Pension age before that date, you may still be able to claim. It’s important to note that if you have savings over £10,000, it might affect the amount you will receive in Pension Credit.

The easiest way to claim Pension Credit is online through the gov.uk website, with help from their application notes. You can also use this service to check your eligibility for Pension Credit.

Alternatively, you can call the Pension Service. They can help you fill out a Pension Credit application. You’ll need to prepare some information to make the process quicker, and it helps to have the following to hand:

• Your National Insurance number

• Bank account details

• Information that indicates your income, savings, or any investments

• Pension information, if you have one

• Housing costs, such as mortgages, interest payments, and service charges

• If you’re a couple, you’ll both need to provide your details

If you prefer a paper application, you can request one by calling the Pension Service or visiting your local Citizens Advice office.

You can start your application up to four months before you reach State Pension age. While you can claim any time after you reach that age, your claim may only be backdated up to three months, meaning you could miss out on benefits.

Even if you find you can only claim a small amount, it can be worth applying because it might help you qualify for other benefits as well as providing a little additional income. The extra benefits you may be entitled to by claiming Pension Credit include:

• Free TV licence (for over 75s)

• Council Tax discount

• Warm Home Discount

• Housing Benefit if you rent the property you live in

• Help with mortgage interest if you own your own home

• Winter Fuel Payment

• Cold Weather Payments

• Help with NHS dental treatments

• Help with other NHS costs, such as eye tests and glasses

Since Pension Credit is means-tested, the amount of money you have in savings affects how much credit you’ll receive. If you reached State Pension age before 6 April 2016, you may be able to claim the Savings Credit part of the Pension Credit.

There’s no limit on how much money you can have in your savings to claim Savings Credit, but amounts over £10,000 could reduce the amount you’ll receive. Essentially, the government treats every £500 over the £10,000 Pension Credit savings limit as £1 income a week. So £12,000 in savings, for example, counts as £4 of income per week.

As with Savings Credit, having more than £10,000 in savings may mean that you won’t receive the maximum amount of Guarantee Credit. Learn more about how much you can have in savings while on benefits.

At Raisin UK, you can compare competitive savings accounts from over 40 partner banks and building societies and manage your savings in one account. . Register for free today to get started.

The information provided here is for informational and educational purposes only and does not constitute financial advice. Please consult with a licensed financial adviser or professional before making any financial decisions. Your financial situation is unique, and the information provided may not be suitable for your specific circumstances. We are not liable for any financial decisions or actions you take based on this information.