Why Pension Credit matters more than most people think
The payment from Pension Credit is useful. But for many people, the real value is what it unlocks. Qualifying for Pension Credit makes you eligible for a cluster of other entitlements that can be worth significantly more than the credit itself.
Around 850,000 eligible households are not claiming Pension Credit, according to DWP estimates. That is a large number of people missing out, not just on the weekly payment, but on everything attached to it. If you have a parent, grandparent, or older friend on a low income, it is worth checking together.
If you get even a small amount of Pension Credit, you qualify for the full range of linked entitlements. There is no minimum amount required.
What Pension Credit unlocks — this is the key section
If you receive Pension Credit, you may also be entitled to:
- Free TV licence if you are 75 or over (via the BBC's over-75 scheme, verify eligibility at GOV.UK as rules may change)
- Full Housing Benefit to cover eligible rent, rather than a partial payment
- Full Council Tax Reduction from your local council (local authority discretion applies, amounts vary)
- Cold Weather Payment when temperatures drop
- Free NHS dental treatment, glasses, and help with health costs (including free prescriptions via the relevant NHS scheme)
- Warm Home Discount from your energy supplier (eligibility criteria apply, verify at GOV.UK)
- Carer's Allowance Supplement if you are in Scotland and receive Carer's Allowance
This is why the advice is: if you are eligible for Pension Credit, apply even if the payment seems small. The linked entitlements can be worth considerably more.
Two parts
Pension Credit has two components
Guarantee Credit and Savings Credit. Most new claimants will only receive Guarantee Credit.
66+
You must be State Pension age to claim
State Pension age is currently 66 — verify at GOV.UK as it may change.
3 months
Maximum backdating period
You can backdate a claim by up to 3 months. Many people do not know this.
The two parts of Pension Credit
Guarantee Credit tops up your weekly income to a minimum level set by the government. If your income is below that level, Guarantee Credit bridges the gap. The threshold changes each April. Check the current minimum income guarantee at GOV.UK before applying, rather than relying on figures from any other source.
Savings Credit is available only to people who reached State Pension age before 6 April 2016. If you reached State Pension age on or after that date, you cannot receive Savings Credit as a new claimant. The threshold and amount also change annually.
Most new claimants only receive Guarantee Credit
Savings Credit was introduced for people who saved for retirement before the new State Pension system took effect. If you reached State Pension age on or after 6 April 2016, you are under the new State Pension system and Savings Credit is not available to you as a new claimant. Do not rule out applying because you assume Savings Credit is the only component, Guarantee Credit has its own eligibility rules.
Who qualifies for Pension Credit
To receive Pension Credit you must:
- Have reached State Pension age (currently 66, verify at GOV.UK)
- Live in England, Scotland, or Wales (Northern Ireland has Pension Credit NI, which is a separate scheme administered by the NI Department for Communities)
- Have an income below the relevant minimum guarantee threshold for your circumstances (the threshold is higher for people with disabilities, carers, and certain housing costs)
Savings above £10,000 are treated as generating tariff income that reduces your Pension Credit award. For every £500 of savings above £10,000, an assumed income of £1 per week is added to your actual income for assessment purposes. Savings below £10,000 are ignored. Savings above £10,000 do not automatically disqualify you, they reduce the amount, but you may still receive something. Use the GOV.UK Pension Credit calculator to see your position.
Couples must both be over State Pension age to make a new claim. The mixed-age couple rule changed in May 2019: couples where one person is below State Pension age can no longer make a new Pension Credit claim. Couples who were already receiving Pension Credit before May 2019 are not affected.
Home ownership does not affect eligibility. Pension Credit is assessed on income, not assets or property ownership.
Mixed-age couples: the May 2019 rule change
Before 15 May 2019, a couple could claim Pension Credit if one person was over State Pension age. That changed. Now both people in a couple must be over State Pension age to make a new Pension Credit claim. If one person is under 66, the couple should claim Universal Credit instead, and note that Housing Benefit for mixed-age couples also changed at the same time. If your couple was already on Pension Credit before May 2019, your existing claim is not affected.
How to check whether you qualify
Before calling or applying, use the GOV.UK Pension Credit calculator. It takes around 10 minutes. You need your National Insurance number, information about your income and pensions, your savings and investment amounts, and details of any housing costs.
If the calculator shows you may qualify, or you are not sure, the following services can give free, impartial advice:
- Citizens Advice, available in person, by phone, and online
- Age UK, particularly helpful for older people and their families
- Pension Wise, part of MoneyHelper, for pension-related queries
- Pension Credit claim line, you can apply by phone; details on GOV.UK
How to claim Pension Credit
You can claim Pension Credit in three ways:
By phone via the Pension Credit claim line (details at GOV.UK). An adviser will take your information and complete the form on your behalf. This is often the easiest route for people who find forms difficult.
Online at GOV.UK, if you have a Government Gateway account.
By post using form AA1PC, available to download from GOV.UK or request by phone.
Backdating: Pension Credit claims can be backdated by up to three months if you were eligible during that period. This is worth doing if you have been eligible for a while but only just finding out. Ask about backdating explicitly when you make your claim.
What to have ready: your National Insurance number, your bank account details, details of all income (State Pension, private pensions, any other income), your total savings and investments, and if you rent, your tenancy details.
Get a reminder when Pension Credit rates are updated each April — and the other benefits it unlocks.
Common questions about Pension Credit
My savings are over £10,000. Can I still claim?▾
Yes. Savings above £10,000 reduce your Pension Credit award rather than disqualifying you. For every £500 of savings over £10,000, £1 per week is added to your assumed income. This means a smaller payment, not no payment at all. Use the GOV.UK Pension Credit calculator with your actual savings figure, you may still be entitled to something, and even a small entitlement qualifies you for all the linked benefits.
Do I need to have worked to qualify?▾
No. Pension Credit is based on income, not National Insurance contributions or employment history. Anyone over State Pension age whose income falls below the relevant threshold may qualify, regardless of their work history.
My partner is under 66. Can I claim Pension Credit?▾
Not as a new claim since May 2019. The rule changed so that both people in a couple must be over State Pension age. If your partner is below State Pension age, you would need to claim Universal Credit instead. If you were already receiving Pension Credit as a couple before 15 May 2019, your existing claim continues under the previous rules and you are not affected by this change.
I already get State Pension. Can I still get Pension Credit?▾
Yes. State Pension is counted as income in the Pension Credit assessment, but if your total income (including State Pension) falls below the minimum income guarantee, Pension Credit tops it up. Most people who receive Pension Credit also receive the State Pension, the two are not mutually exclusive.
What happens if my income changes after I start claiming?▾
You must report changes to the Pension Credit team. Changes in income, savings, or living situation can affect your entitlement. If your income goes up, your Pension Credit may reduce or stop. If it goes down, you may be entitled to more. Reporting is your responsibility, overpayments caused by unreported changes may need to be repaid.
Can I get Pension Credit if I own my home?▾
Yes. Home ownership does not affect eligibility. Pension Credit is assessed on income, not property or assets. Owning your home outright does not count against you.
Is Pension Credit the same as the State Pension?▾
No. They are completely different. The State Pension is an entitlement based on your National Insurance contribution record, you build it up through working years. Pension Credit is a means-tested top-up for people over State Pension age whose income falls below a minimum level. You can receive both at the same time, and receiving State Pension does not disqualify you from Pension Credit.
Will Pension Credit reduce my other benefits?▾
No. Pension Credit does not reduce other entitlements. It tends to unlock additional ones. Receiving Pension Credit can trigger eligibility for the free TV licence (if over 75), full Housing Benefit, full Council Tax Reduction, free NHS dental treatment, and other support. The payment itself is tax-free.
Related guides
- →Attendance AllowanceAttendance Allowance is for over-66s with care needs. Receiving it can increase your Pension Credit.
- →Winter Fuel PaymentIn England and Wales, you now need to receive a qualifying benefit including Pension Credit to get the Winter Fuel Payment.
- →Council TaxPension Credit can unlock full Council Tax Reduction — how council tax works and who pays less.
- →TV Licence exemptionsPension Credit is the qualifying benefit for the free TV licence for over-75s.
- →NHS prescriptionsPension Credit recipients qualify for free NHS prescriptions, dental treatment, and sight tests.
- →Benefits overviewAll the main UK benefits explained — means-tested and non-means-tested.