A major announcement from the Department for Work and Pensions (DWP) has revealed that older couples living on less than £346 per week could be entitled to a surprise £4,300 annual boost through Pension Credit.
With nearly 1.4 million pensioners already claiming the benefit and around 760,000 eligible individuals still not claiming it, the government is ramping up awareness efforts.
This means-tested benefit is designed to top up State Pension income and provide access to a range of additional support.
What Is Pension Credit?
Pension Credit is a tax-free benefit aimed at retired individuals on low incomes. It provides extra income support and can also unlock access to further financial assistance, including:
- Housing Benefit
- Council Tax reductions
- Free TV licences
- Help with NHS costs and heating bills
There are two parts to Pension Credit:
- Guarantee Credit – tops up your weekly income.
- Savings Credit – provides extra money if you’ve made modest savings for retirement (only available to those who reached State Pension age before April 6, 2016).
Eligibility Criteria for 2025/26
To be eligible for Pension Credit in the financial year 2025/26, your weekly income must be below the thresholds outlined below:
| Household Type | Weekly Income Threshold | Annual Pension Credit Value |
|---|---|---|
| Single Pensioner | Less than £227.10 | Up to £3,800 annually |
| Couple (Married/Cohabiting) | Less than £346.60 | Up to £4,300 annually |
Even if your income is slightly above these limits, you may still qualify if you have:
- A disability
- Housing costs
- Savings or modest pensions
- Responsibilities as a carer
What Counts as Income and Savings?
Income Includes:
- State Pension
- Other private or work pensions
- Earnings from employment or self-employment
- Most social security benefits (e.g., Carer’s Allowance)
Income That Doesn’t Count:
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Attendance Allowance
- Winter Fuel Payments
- Housing Benefit
Savings Consideration:
- Below £10,000 – no impact on entitlement.
- Above £10,000 – for every £500, an additional £1 per week is counted as income.
How to Check If You’re Eligible
You can check eligibility quickly by using the Pension Credit Calculator on the GOV.UK website. To use the tool, you’ll need:
- Income details (pension, employment, or benefits)
- Savings and investment details
- Information for both you and your partner (if applicable)
Alternatively, you can call the Pension Credit helpline on 0800 99 1234 between 8am–6pm, Monday to Friday.
How to Apply for Pension Credit
You can apply:
- Online via GOV.UK
- By phone on 0800 99 1234
- By post using a printed claim form
You can apply up to 4 months before you reach State Pension age, and claims can be backdated by up to 3 months if eligible during that time. Documents needed include:
- National Insurance number
- Income and savings details
- Bank account information
Other Benefits If You Get Pension Credit
Qualifying for Pension Credit can unlock a range of additional support, including:
| Support Available | Benefit |
|---|---|
| Housing Benefit | Help with rent or mortgage interest |
| Council Tax Reduction | Discounts on Council Tax |
| Free TV Licence | For pensioners aged 75+ |
| NHS Support | Free dental, glasses, and travel for appointments |
| Energy Bills Assistance | Warm Home Discount, Winter Fuel Payments |
| Royal Mail Redirection Discount | If you’re moving house |
Mixed-Age Couples: Important Update
Since May 2019, mixed-age couples (where one partner is below State Pension age) are no longer eligible for Pension Credit. They are assessed under working-age benefits, and can only claim Pension Credit when both partners reach State Pension age.
With rising costs and inflation affecting everyday living, the £4,300 Pension Credit boost could be life-changing for thousands of older couples and single pensioners. Even a £1 per week award is enough to unlock access to other essential financial help.
If you or someone you know is living on less than £346 a week as a couple, it’s time to check eligibility and apply. Don’t leave money unclaimed – the support is there to help improve your quality of life in retirement.
FAQs
Can I get Pension Credit if I own my home or have savings?
Yes. Many homeowners and those with savings under £10,000 are still eligible. Even if your savings are higher, you may qualify depending on your income and circumstances.
How long does it take to process a claim?
According to the DWP, 78% of claims are processed within 50 working days (10 weeks). You may receive your first payment, including any backdated amount, by September if you apply now.
Can I claim Pension Credit if I already receive State Pension?
Yes. Pension Credit is a top-up benefit, and many State Pension recipients qualify. You can check using the Pension Credit calculator or call the DWP for assistance.