Pension Credit is a means-tested benefit for people in the UK who are over State Pension age and on a low income. It tops up weekly income to a minimum guaranteed level and can also unlock access to other benefits including free TV licences for those aged 75 or over, housing benefit, council tax reduction, cold weather payments, and help with NHS dental and sight costs. Despite this, an estimated 850,000 eligible households do not claim it.
Who can claim Pension Credit
You can claim Pension Credit if you live in England, Scotland or Wales, you have reached State Pension age (currently 66), and your weekly income is below the qualifying threshold. The threshold varies depending on your circumstances, but as a guide, single people with a weekly income below around £218 and couples below around £332 may be eligible. These figures change each tax year.
The two parts of Pension Credit
Pension Credit has two components. Guarantee Credit tops up your weekly income to the minimum level set by the government. Savings Credit is an additional payment available to people who reached State Pension age before 6 April 2016 and have saved some money towards their retirement. You may be eligible for one or both parts.
What counts as income for Pension Credit
Income that is counted includes State Pension, private and workplace pensions, earnings from employment, and certain other benefits. Some income is not counted, including Attendance Allowance, Disability Living Allowance care components, and Personal Independence Payment daily living components. Savings above £10,000 reduce the amount you receive, but having savings does not automatically disqualify you.
Why so many people do not claim
The most common reasons eligible people do not claim are not knowing it exists, thinking they will not qualify because they have some savings or a small pension, or finding the application process daunting. None of these is a good reason to miss out. The application takes around 20 to 30 minutes, and the DWP will check eligibility for you.
How to apply
You can apply by calling the Pension Credit claim line on 0800 99 1234 (free from most phones, Monday to Friday 8am to 6pm). You can also apply online at GOV.UK. You will need your National Insurance number, bank account details, and information about your income, savings, and investments. Claims can be backdated by three months.
Tip: If you or someone you know might be eligible, it is always worth applying or asking the DWP to check. The call is free and there is no penalty for applying and not being eligible.
How Ask Fin can help
The UK Benefits Checker in Ask Fin helps you run a general pre-check across common benefits to identify ones worth exploring. It is a starting point for finding out what you may be eligible for — not a replacement for an official eligibility check.
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Ask Fin provides general guidance only, not regulated benefits advice. Eligibility depends on your personal circumstances. Always check directly with the DWP or GOV.UK for current rules and thresholds.