Pension Credit is a means-tested benefit for people over State Pension age on a low income. An estimated 850,000 eligible households do not claim it — often because they do not know it exists. The value can be significant: it tops up income to a minimum weekly level and unlocks additional entitlements.
The two parts of Pension Credit
Guarantee Credit: tops up your weekly income to a minimum guaranteed level. Check GOV.UK for current figures as these are uprated each April.
Savings Credit: an additional payment for people who saved towards retirement, only available to those reaching State Pension age before 6 April 2016.
Who can claim
You must be over State Pension age (currently 66), and your weekly income must fall below the minimum Guarantee Credit level. Income includes State Pension, private pensions, earnings and most other income. Savings above £10,000 are assumed to generate income (reducing entitlement) but do not automatically disqualify you.
What Pension Credit unlocks
Receiving Pension Credit — even a small amount — typically unlocks: full Housing Benefit if you rent, Council Tax Reduction, Cold Weather Payments, free NHS dental treatment, free sight tests and glasses vouchers, and a free TV licence for those aged 75 and over. These additional entitlements can be worth more than the Pension Credit itself.
How to claim
Call the Pension Credit claim line (0800 99 1234), apply online at GOV.UK, or complete a paper form. You can backdate a claim by up to three months.
General guidance only — not regulated financial advice.