The DWP has urged people to check whether they are eligible for Pension Credit
More than 700,000 pensioners are missing out on a Government boost worth up to £4,300 a year. The Department for Work and Pensions (DWP) has warned that they may not realise they qualify for Pension Credit.
Around 1.4 million elderly people in the UK are currently receiving Pension Credit, a means-tested benefit that can provide an average of £4,300 in additional support during the 2025/26 financial year. However, as reported by the Daily Record, the DWP estimates that a shocking 760,000 pensioners are entitled to this State Pension top-up but are not claiming it.
The department will therefore continue its awareness campaign this year, urging people to check their eligibility and make a claim. Married pensioners with a combined weekly income of less than £346 per week, or single pensioners with an income of below £227.10 could be eligible for Pension Credit.
Some elderly people believe that because they have savings or own their home, they would not be eligible for the means-tested benefit, which can also provide access to help with housing costs, heating bills and Council Tax. However, an award of just £1 per week is enough to unlock other support.
The DWP recently confirmed that nearly 78 per cent of all new claims for Pension Credit are processed – from initial application to award decision letter – within the target timeframe of 50 working days (10 weeks). This means that elderly people on a low income making a new claim this month could receive their first payment and any arrears by July.
It’s vital for all elderly individuals – whether single, married or cohabiting – to ensure they’re claiming all the additional financial support they’re entitled to this year to help increase their income and counteract the continuing cost of living crisis.
Here’s everything you need to know about the benefit.
Pension Credit
When you apply for Pension Credit your income is calculated. If you have a partner, your income is calculated together.
Pension Credit tops up:
- Your weekly income to £227.10 if you’re single
- Your joint weekly income to £346.60 if you have a partner.
If your income is higher, you might still be eligible for Pension Credit if you have a disability, you care for someone, you have savings or you have housing costs.
What counts as income
Your income includes:
- State Pension
- Other pensions
- Earnings from employment and self-employment
- Most social security benefits – for example, Carer’s Allowance.
What does not count as income
Not all benefits are counted as income. For example, the following are not counted:
- Adult Disability Payment
- Attendance Allowance
- DWP Christmas Bonus
- Child Benefit
- Disability Living Allowance
- Pension Age Disability Payment
- Personal Independence Payment
- social fund payments like Winter Fuel Allowance
- Housing Benefit
- Council Tax Reduction.
Your savings
If you have £10,000 or less in savings and investments this will not affect your Pension Credit.
If you have more than £10,000, every £500 over £10,000 counts as £1 income a week. For example, if you have £11,000 in savings, this counts as £2 income a week.
How to check eligibility for Pension Credit
Older people, or friends and family, can quickly check their eligibility and get an estimate of what they may receive by using the online Pension Credit calculator on GOV.UK here.
Alternatively, pensioners can contact the Pension Credit helpline directly to make a claim on 0800 99 1234 – lines are open 8am to 6pm, Monday to Friday.
Expert help and advice is also available from:
- Independent Age
- Income Max
- Citizens Advice
- Age UK.
More details about claiming Pension Credit can be found on GOV.UK here.
