Understanding Pension Credit in the UK
Pension Credit is a benefit that you might be entitled to if you’re of State Pension age or over and living in the UK. It’s a complex area of social security, but it could significantly boost your income if you’re eligible. Therefore, it’s worth understanding what it is and how it works.
What is Pension Credit?
Pension Credit is a means-tested benefit designed to provide extra financial support to people of State Pension age and over, who have a low income. The UK government introduced it to ensure that pensioners have a minimum level of income.
The benefit is made up of two parts: Guarantee Credit and Savings Credit.
Guarantee Credit
Guarantee Credit tops up your weekly income if it’s below £177.10 (for single people) or £270.30 (for couples). These figures are correct as of 2025.
Savings Credit
Savings Credit is an extra payment for people who saved some money towards their retirement, such as a pension. However, you need to have reached State Pension age before 6 April 2016 to be eligible for Savings Credit.
Who is Eligible for Pension Credit?
You must live in the UK and have reached State Pension age to be eligible for Pension Credit. Also, your weekly income must be below a certain amount: £177.10 for single people or £270.30 for couples. Your income can include:
- State Pension
- Other pensions
- Earnings from work
- Social security benefits
How to Apply for Pension Credit
You can apply for Pension Credit up to four months before you reach State Pension age. You can apply online, by phone, or by post. For more details, visit the official Pension Credit application page.
How Much Pension Credit Will You Get?
The amount of Pension Credit you’ll get depends on your circumstances, such as your income, whether you’re single or have a partner, and whether you have any disabilities.
The Pension Credit calculator on the government’s website can give you an estimate of how much you could get.
The Impact of Pension Credit on Other Benefits
Claiming Pension Credit could increase the amount you get from other benefits, or make you eligible for other benefits. For example, if you get Guarantee Credit, you’ll also get your Council Tax reduced to zero.
Conclusion
Pension Credit can provide a significant boost to your income if you’re of State Pension age and on a low income. It’s worth checking if you’re eligible and applying if you are. Remember, Pension Credit is not just for people who have retired – you can claim it even if you’re still working or if you have savings.
