What is Pension Credit?
In simple terms: Pension Credit is a benefit that tops up your weekly income to a minimum level. It's for people who have reached State Pension age (currently 66).
There are two parts to Pension Credit:
Guarantee Credit
Tops up your weekly income to a minimum amount if it's below a certain level.
Savings Credit
Extra money if you saved for retirement. Only available if you (or partner) reached State Pension age before 6 April 2016.
Who Can Claim Pension Credit?
You may be able to claim if you:
Currently 66 years old
England, Scotland, Wales, or Northern Ireland
Including State Pension, other pensions, and any other income
What About Savings?
Unlike many benefits, there's no savings limit for Pension Credit. However, savings over £10,000 are assumed to give you £1 of income per week for every £500 above £10,000.
Extra Amounts You Might Get
On top of the standard amounts, you may get more if you:
| Your Situation | Extra Amount (weekly) |
|---|---|
| Have a severe disability | £81.50 |
| Care for someone (Carer Addition) | £45.60 |
| Have housing costs (mortgage interest, etc.) | Varies |
| Have a child living with you | £66.29 per child |
Benefits Pension Credit Unlocks
This is crucial: Getting Pension Credit can unlock access to many other benefits and discounts. Even a small amount of Pension Credit opens the door to these:
Housing Benefit
Help with rent if you're renting
Council Tax Reduction
Possibly 100% off your council tax
Free TV Licence
If you're 75 or over
Warm Home Discount
£150 off electricity bill
Cold Weather Payments
£25 when it's very cold
NHS Help
Free dental treatment, glasses, etc.
Help with Funeral Costs
Funeral Expenses Payment
Social Tariffs
Cheaper broadband, water, etc.
How to Claim Pension Credit
Online
Claim at gov.uk/pension-credit. You'll need your National Insurance number, bank details, and information about your income and savings.
By Phone
Call the Pension Credit claim line: 0800 99 1234. They can take your claim over the phone. Lines open Monday to Friday, 8am to 6pm.
By Post
You can download the form and post it. The phone line can send you a paper form if you prefer.
Backdating
Pension Credit can be backdated up to 3 months. If you've been eligible for a while, make sure to ask for this when you claim.
Real World Example
Margaret, 72, lives alone. Her only income is her State Pension of £169.50 per week.
Key Points to Remember
- ✓No upper savings limit - savings over £10,000 just count as extra income
- ✓Can be backdated 3 months
- ✓Unlocks many other benefits even if you only get a small amount
- ✓You can still work and claim Pension Credit
- ✓Worth claiming even if you have a small private pension