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A Guide to Understanding Pension Credit in the UK
Written by
Georgina, Founder of Purpl
Published on
April 15, 2025
Pension Credit is a vital financial support program available to older people in the UK, designed to supplement their income and help them achieve a more comfortable standard of living in retirement. Despite its importance, Pension Credit remains underutilised, with many eligible individuals failing to claim it. This guide provides an in-depth overview of Pension Credit, tips on how to maximise its benefits, and answers to frequently asked questions.
This guide covers England, Scotland and Wales.
For Pension Credit information for Northern Ireland, look at the NIDirect website here.
Purpl accepts no responsibility for the content of third-party websites and cannot guarantee that all these services mentioned may be able to help. Please note that situations and funding change from time to time. Purpl offer this information to be helpful and in good faith and the information is valid as of 15 April 2025.
In this Guide
- What is Pension Credit?
- You Could be Eligible – Don’t Miss Out!
- Pension Credit and Help with Health Costs
- Pension Credit and Help with Housing Costs
- Pension Credit and Help with Other Costs
- Eligibility Criteria
- How to Apply for Pension Credit
- Top Tips for Claiming Pension Credit
- Change of Circumstances
- How to Report a Change
- Living with a Partner under State Pension age
- Common Myths About Pension Credit
- Frequently Asked Questions (FAQs)
- Get Help with Benefits and Pensions if you have Accessibility Needs
- Other Support Available if you’re not Eligible for Pension Credit
- Conclusion
What is Pension Credit?
Pension Credit is a means-tested benefit provided by the UK government to individuals over the State Pension age, who live in England, Scotland or Wales. It aims to boost the income of retirees who might otherwise struggle to make ends meet. It comes through the Department for Work and Pensions (DWP).
Pension Credit is divided into two components:
- Guarantee Credit: This part tops up your weekly income to a minimum level. As of April 2023, the amounts are:
- £201.05 per week for single individuals.
- £306.85 per week for couples.
- Savings Credit: This additional amount is for people who saved some money towards their retirement, such as through a private or workplace pension. It is available only to those who reached State Pension age before 6 April 2016.
- Up to £15.94 per week for single people.
- Up to £17.84 per week for couples.
You Could be Eligible – Don’t Miss Out!
Research from Age UK estimates that 850,000 eligible households fail to claim Pension Credit, missing out on these additional benefits. You can use the Turn2Us benefits calculator to see if you are eligible for Pension Credit. Pension Credit is more than just an income boost; it serves as a gateway to other benefits and entitlements. Alongside the winter fuel payment, claiming pension credit can unlock housing benefit, support with mortgages, a free TV license and help with NHS dental appointments, which can add up to thousands of pounds in additional support.
Pension Credit and Help with Health Costs
You’ll get free NHS dental treatment, and you can get help with the cost of glasses and transport to hospital.
If you care for someone, you might get an extra amount known as Carer Addition, which is worth up to £45.60 a week.
If you have a disability, you may get an extra amount known as Severe Disability Addition, which is worth up to £81.50 a week.
Pension Credit and Help with Housing Costs
You probably won’t have to pay Council Tax (unless other people live with you).
If you rent your home, you might get your rent paid in full by Housing Benefit.
If you own your home, you might be eligible for help with mortgage interest, ground rent, and service charges.
Pension Credit and Help with Other Costs
If you’re 75 or over, you can get a free TV licence.
You’ll be eligible for a Cold Weather Payment during particularly cold weather.
The Government has announced that from Winter 2024 onwards, only people who claim Pension Credit (or another means-tested benefit) will be eligible for the Winter Fuel Payment; an annual payment to help with heating costs during the colder months.
Pension Credit serves as a gateway to other benefits and entitlements that can add up to thousands of pounds in additional support! It is well worth you applying if you are eligible!
Georgina’s Disability Money Saving Tips
Eligibility Criteria
To qualify for Pension Credit, you must meet certain conditions:
Age Requirement: You must have reached the State Pension age. For couples, both partners must meet this criterion, unless one partner is already claiming Housing Benefit.
Residency: You must live in England, Scotland, or Wales (different rules apply for Northern Ireland).
Income Threshold: Pension Credit is means-tested, so your income (from pensions, savings, earnings, and other benefits) must fall below the threshold mentioned above.
If you have savings or investments over £10,000, they will be taken into account, with every £500 above this limit treated as generating £1 of income per week.
If you’ve reached State Pension age, you can claim Guarantee Credit if your weekly income is less than:
- £218.15 if you’re single
- £332.95 if you’re a couple.
This works out at £11,343.80 a year if single, or a shared income of £17,313.40 for a couple.
Even if your weekly income is higher than these thresholds, you could still claim Guarantee Credit if you meet one of the following criteria:
- you’re a carer
- you have a severe disability
- you have certain housing costs, such as service charges
- you’re responsible for a child or young person who usually lives with you.
How to Apply for Pension Credit
Applying for Pension Credit is straightforward. Here are the steps:
Gather Necessary Information
Before applying for Pension Credit, ensure you have all the necessary documents ready to make the process smoother. You will need your National Insurance number, details of your bank account, and comprehensive information about your income, savings, and investments. If applicable, include details about your partner’s financial situation as well. Having these documents organised will help prevent delays in processing your claim and ensure you provide accurate information to the Department for Work and Pensions (DWP).
Apply Online: You can use the government’s official website to complete your application.
Apply by Phone: Call the Pension Credit claim line at 0800 99 1234 (Textphone: 0800 169 0133).
Apply by Post: Request a paper application form by contacting the DWP.
It’s worth noting that you can apply for Pension Credit up to four months before reaching State Pension age or up to three months after you’ve become eligible.
Top Tips for Claiming Pension Credit
- Check Eligibility Regularly: Even if you’ve been told you don’t qualify, changes in your circumstances – such as a reduction in income or increase in age – may make you eligible.
- Use the Pension Credit Calculator: The government’s online calculator can give you an estimate of what you might receive.
- Claim Even if You Have Savings: Many people mistakenly believe that having savings disqualifies them. However, only savings over £10,000 are considered, and even then, the effect on your entitlement may be minimal.
- Seek Help from Charities: Organisations like Age UK and Citizens Advice can help you with the application process.
- Don’t Delay: Pension Credit claims can only be backdated for up to three months, so apply as soon as you become eligible.
If you have been affected by the changes to the Winter Fuel Payment, you should check if you are eligible for pension credit. If you are able to claim this benefit, it will now unlock the Winter Fuel Payment for you. The deadline to receive a backdated Winter Fuel Payment for 2024 has now passed, but those eligible should still apply in good time to secure their entitlement for this year.
Georgina’s Disability Money Saving Tip
Change of Circumstances
You need to report changes to you and your partner’s personal and financial circumstances.
Your claim might be stopped or reduced if you do not report a change straight away. Some changes will increase the amount of Pension Credit you could get.
Changes to your Personal Circumstances
A change of personal circumstances can include:
- moving to a new address
- starting or stopping living with a partner
- the death of a partner who is named on your claim
- starting or stopping work
- going into hospital or a care home
- people moving in or out of your house
- changing your name
- switching your bank account
- changes to your Post Office card account
- leaving England, Scotland and Wales for any period (for example, going on holiday)
- you start or stop looking after a child or young person under the age of 20
- changes to your immigration status, if you’re not a British citizen
Changes to your Financial Circumstances
You also need to report if your income or expenses change. This can include changes to:
- housing costs, for example ground rent or service charges
- benefits that anyone living in your home gets – including getting a new benefit or a benefit being stopped
- occupational or personal pensions – including if you start to get a new pension or take a lump sum out of your pension pot
- other income, for example foreign pensions or Working Tax Credits
- savings, investments or property
Call the Pension Credit helpline if you’re not sure if you need to report a change.
How to Report a Change
Pension Service helpline
Telephone: 0800 731 0469
Textphone: 0800 169 0133
Relay UK (if you cannot hear or speak on the phone): 18001 then 0800 731 0469
British Sign Language (BSL) video relay service if you’re on a computer – find out how to use the service on mobile or tablet
Monday to Friday, 8am to 6pm (except public holidays)
Find out about call charges
You can also report by post. The address is on the letters you get about your Pension Credit.
Living with a Partner under State Pension age
You will stop getting Pension Credit if you start living with a partner who is under State Pension age. You can start getting it again when your partner reaches State Pension age.
If you were living with a partner under State Pension age before 15 May 2019 and getting Pension Credit, you’ll keep getting it unless you stop being eligible. If this happens, you usually won’t be able to get Pension Credit again until you and your partner are both eligible.
If you cannot get Pension Credit, you might be entitled to Universal Credit instead, but you and your partner cannot get both at the same time. If one of you starts getting Universal Credit you’ll stop being eligible for Pension Credit.
Common Myths About Pension Credit
Myth 1: “I have too much income to qualify.” Even if your income is slightly above the threshold, you may still qualify for Pension Credit if you have certain disabilities or are a carer.
Myth 2: “It’s not worth the effort.” Claiming Pension Credit can unlock additional benefits worth thousands of pounds per year.
Myth 3: “I’ll have to repay it later.” Pension Credit is not a loan; it’s a benefit, and you won’t need to pay it back.
Frequently Asked Questions (FAQs)
Can I work and still claim Pension Credit? Yes, you can work and still receive Pension Credit, but your earnings will be taken into account when calculating your entitlement.
What happens to my Pension Credit if I live with a partner? If you live with a partner, your income and savings will be assessed jointly. Both of you must have reached State Pension age unless one is already receiving Housing Benefit.
Will Pension Credit affect my other benefits? No, Pension Credit is designed to complement other benefits, not replace them.
Can I get Pension Credit if I’m self-employed? Yes, self-employed individuals can apply for Pension Credit. Your income from self-employment will be assessed as part of the application.
What if my application is denied? If your application is denied, you can ask the DWP to reconsider their decision. If you’re still unsatisfied, you can appeal through an independent tribunal.
Get Help with Benefits and Pensions if you have Accessibility Needs
You can get help if you have difficulties claiming benefits and pensions because of a disability or health condition.
Difficulty using the phone
If you have difficulty using the phone, you can use one of the following services instead.
Relay UK is a national service provided by BT that helps people with hearing and speech difficulties communicate with people over the phone. This can be used to contact all of our benefit and pension services.
Textphone is available for all benefits and pension services. The textphone number is given with the other contact details in benefits and pensions guides.
Video Relay Service allows British Sign Language (BSL) users to communicate with DWP through a BSL interpreter. The service is available for all DWP benefits and services. Check benefit and service contact details to find out where it is available and how to use it.
Other alternatives to the telephone
If you cannot use these, you can ask for:
- communication by email – make sure you tell them this is because of your disability or health condition
- support from a family member, a friend or someone else such as a welfare rights adviser – make sure you give them your permission to help you
- a home visit
Difficulty using a computer
If you have difficulty using our online services, contact the service by phone or letter. Tell them you cannot use the digital service because of your disability. You will be helped to access the service in a different way.
Difficulty reading letters or filling in forms
If you have difficulty reading letters or filling in forms, let us know when you contact them. You can ask for information in other ways, for example:
- larger typesize
- Braille – make clear if you need grade 1 (also known as uncontracted Braille) or grade 2 (also known as contracted Braille)
- audio – you can get letters or leaflets on CD or as an MP3 file
- email – if you use assistive technology, you can get letters and forms emailed to you in a suitable format
- phone – ask for a phone call to explain things in more detail
- paper colour – if you find it difficult to read letters because of the colour you can ask for them in a different colour
- a home visit
Other Support Available if you’re not Eligible for Pension Credit
Attendance allowance
Attendance allowance is a non-means tested benefit designed to support pensioners who need daily living help. It offers a minimum of £3,700 a year, rising to £5,644.60 depending on the level of support needed.
To be eligible for the benefit, you must have needed help or supervision for six consecutive months, even if none has been received. This means you need assistance with daily living, or someone to watch you to avoid danger to yourself.
You can find our Purpl Guide to Attendance Allowance here.
Household support fund
The household support fund is money given to all local councils to support vulnerable households in their area. Councils are free to allocate the funds however they feel is best.
Some have provided cash grants, supermarket vouchers, or energy bill assistance. You will need to visit your local council’s website to find out what help may still be available.
Energy provider help
Some energy suppliers are offering help for those struggling with their energy bills. These include Scottish Power, EDF, E.ON and Octopus. You will need to contact your energy provider to find out if you are eligible.
British Gas also offers a grant of up to £2,000 to customers of any energy provider. You will need to meet specific criteria to be eligible, and can apply on the British Gas Energy Trust website.
Charitable Grants
If you are struggling financially, you may be eligible for certain charitable grants. There are a wide range of grants available depending on your circumstances. However, these grants will typically require you to meet specific criteria and only be able to offer limited funds. You can read our Purpl Guide to charitable grants here.
Pension Credit in Northern Ireland
We are producing a guide to Pension Credit in Northern Ireland, but until then you can use the Pension Credit calculator to work out how much you might get and Contact the Northern Ireland Pension Centre if you’re not sure whether you’re eligible for extra amounts.
You can find more information on the NIDirect website here.
Conclusion
Pension Credit plays a crucial role in supporting older people across the UK, ensuring that retirement years are financially secure and dignified. However, its benefits often go unclaimed due to misconceptions or lack of awareness. By understanding eligibility requirements, knowing how to apply, and dispelling common myths, you or someone you know could benefit significantly from this valuable support system.
If you think you or a loved one might be eligible, don’t hesitate to apply. Every penny counts in retirement, and Pension Credit could open the door to a wealth of additional benefits and opportunities.
About the Author
Georgina is the founder of Purpl, a platform dedicated to helping disabled people save money through exclusive discounts. Living with Multiple Sclerosis (MS) and ADHD, she understands firsthand the financial challenges of living with a disability. Her mission is to work with brands to secure discounts that ease the cost of essential products, services, and everyday expenses for the disabled community.
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