The Department for Work and Pensions (DWP) has highlighted one of the UK’s most underclaimed benefits—Pension Credit.
Despite being worth an average of £4,200 a year, around 700,000 pensioners are not claiming this support, leaving millions of pounds unclaimed every year.
Pension Credit is a means-tested benefit designed to top up the incomes of low-income pensioners. Yet, many elderly people remain unaware of their entitlement, missing out not only on extra cash but also on other valuable perks linked to the benefit.
What Is Pension Credit?
Pension Credit was created to supplement the income of those who have reached the State Pension age and are struggling to make ends meet. It ensures older people can afford basic living costs while also unlocking additional benefits such as:
- Housing support (ground rent, service charges).
- Council Tax reductions.
- Free TV licences for over-75s.
- Extra allowances if you are a carer, severely disabled, or responsible for children or young people.
Since Pension Credit is not paid automatically, eligible pensioners must actively apply through the DWP.
Why So Many Pensioners Miss Out
Experts suggest that the main reason for underclaiming is lack of awareness. Many pensioners assume they are not eligible because they have small savings or modest pensions. Others mistakenly believe it will affect their State Pension, which is not the case.
Rachel Vahey, Head of Public Policy at AJ Bell, noted that Pension Credit has historically been underclaimed, urging pensioners to apply even if they are close to the income threshold.
Pension Credit Eligibility
To qualify for Pension Credit, applicants must:
- Live in England, Scotland, or Wales.
- Be aged 66 or older (current State Pension age).
- Have a low income below the DWP thresholds.
- Include all sources of income when applying (State Pension, private pensions, earnings, and most benefits).
Not all benefits count as income. Exemptions include Disability Living Allowance (DLA), Personal Independence Payment (PIP), Attendance Allowance, Christmas Bonus, and Winter Fuel Allowance.
Pension Credit Rates 2025
The following are the weekly amounts available under Pension Credit as of 2025:
| Type | Weekly Amount | Annual Equivalent |
|---|---|---|
| Single person (minimum guarantee) | £227.10 | ~£11,800 |
| Couple (minimum guarantee) | £346.60 | ~£18,000 |
| Severe Disability addition | +£81.50 | ~£4,238 |
| Carer addition | +£45.60 | ~£2,371 |
| Child/young person addition | +£66.29 (first £76.79) | ~£3,449 – £3,993 |
| Disabled child addition | £35.93 – £112.21 | ~£1,868 – £5,830 |
| Savings Credit (pre-2016 retirees) | £17.01 (single), £19.04 (couple) | ~£884 – £991 |
This means pensioners could receive over £4,200 a year extra depending on their circumstances, on top of their State Pension.
How to Apply for Pension Credit
Applying is straightforward and can be completed in just 16 minutes online.
Steps to apply:
- Visit the official gov.uk Pension Credit page.
- Apply online or call the Pension Credit helpline at 0800 99 1234 (textphone 0800 169 0133).
- Provide details of your income, pensions, and savings.
- Submit supporting documents if required.
- Await confirmation from the DWP.
Over 90% of new customers now apply online or via phone, making the process simpler than ever.
Why Pension Credit Matters
Beyond topping up weekly income, Pension Credit unlocks a range of secondary benefits such as:
- Free NHS dental treatment and eye tests.
- Help with heating costs through the Warm Home Discount.
- Council Tax reductions.
- Free TV licences for over-75s.
For pensioners struggling with rising living costs, claiming Pension Credit could make a life-changing difference.
The DWP’s Pension Credit remains one of the UK’s most underclaimed benefits, with 700,000 pensioners missing out on support worth up to £4,200 annually. For those living on a low income, it can be the difference between struggling and living comfortably.
Pensioners are urged to check eligibility and apply, as the process is simple and quick. Claiming not only boosts income but also opens doors to other essential benefits, ensuring that older citizens receive the support they are entitled to.
FAQs
How much can a single pensioner claim with Pension Credit?
A single person can get up to £227.10 per week, around £11,800 a year, plus possible top-ups.
Can you claim Pension Credit if you have savings or own a home?
Yes. Savings and homeownership do not automatically disqualify you. Eligibility is based on income thresholds.
How long does it take to apply?
On average, the application takes just 16 minutes online, according to the DWP.