State pensioners in the UK are being urged to come forward and claim Pension Credit, a benefit that many are missing out on. This under-claimed benefit can offer financial relief to those who need it the most, with some individuals potentially receiving up to £12,000 in support. In 2025, the Department for Work and Pensions (DWP) is set to increase Pension Credit payments, providing further assistance to older people on low incomes.
What is Pension Credit?
This Article Includes
Pension Credit is a benefit designed to provide additional financial support for older people living on low incomes. It is available to both single individuals and couples who meet specific eligibility criteria. The benefit is most commonly under-claimed, which means that many people who are entitled to it are not taking advantage of the financial support it offers.
Who Can Claim Pension Credit?
To qualify for Pension Credit, you must meet certain age and income requirements. The benefit is available to individuals who have reached the State Pension age and live in England, Scotland, or Wales. You must also have a weekly income below £218.15 if you are single or £332.95 if you have a partner.
In addition to income, certain circumstances may allow you to qualify for Pension Credit even if your income exceeds the thresholds. For instance, if you have a disability, care for someone, have savings, or need to pay specific housing costs, such as mortgage interest, you may still be eligible for this support.
The Two Parts of Pension Credit
Pension Credit comes in two parts: Guarantee Credit and Savings Credit.
Guarantee Credit: This provides a minimum guaranteed income for those on low incomes, helping ensure they don’t fall below a certain threshold.
Savings Credit: This part is designed to reward people who have some savings or a small income above the basic level. However, it is only available to people who reached the State Pension age before April 6, 2016.
How Pension Credit Can Help
Even if you are only eligible for a small amount of Pension Credit, it’s still worth applying. This benefit can unlock access to other forms of financial support, such as Housing Benefit and other benefits related to health and care. Additionally, some people may qualify for additional benefits or discounts on utility bills, further easing financial pressures.
No Savings Limit, but Impact of Large Savings
There is no strict savings limit for Pension Credit. However, if you have savings above £10,000, it can reduce the amount you receive. For people with significant savings, it is crucial to assess how this may affect their eligibility before applying.
What Has Changed for Couples?
Recent changes in eligibility rules for couples may impact those already receiving Pension Credit or considering applying. Under the new guidelines, both individuals in a couple must be over the State Pension age to qualify for the benefit. This means that if one person is younger than the State Pension age and moves in with a partner who is eligible, they may no longer qualify for Savings Credit.
Claiming Pension Credit: Act Now
With the increase in the standard minimum guarantee for Pension Credit, now is the time to act. From April, the Pension Credit guarantee will rise by 4.1%, boosting annual payments from around £11,400 to £11,850 for single pensioners. This increase could significantly improve the financial security of eligible individuals, especially those struggling to make ends meet.
However, it is important to remember that Pension Credit is one of the most under-claimed benefits, meaning many eligible pensioners miss out on this crucial support. If you meet the criteria, applying for Pension Credit could help you unlock further benefits, providing financial relief in your later years.
Final Thoughts
Pension Credit offers invaluable assistance to pensioners in need, ensuring they can live with dignity and financial stability. If you are eligible, it is essential to make a claim as soon as possible, especially with the upcoming increase in payments. Don’t miss out on the opportunity to access this crucial financial support.