Who it helps
Pensioners on a low income
Guarantee Credit (2026/27)
£218.15 single / £332.95 couple per week
Also unlocks
Warm Home Discount and other support
GATEWAY BENEFIT · 8 min read
Pension Credit: the benefit 800,000 eligible pensioners are not claiming
This guide covers Pension Credit eligibility, payment amounts, and how to apply. Educational information only. Always confirm your entitlement directly with the Pension Service.
At a glance
Pension Credit summary
Overview
What Pension Credit is
Pension Credit tops up your weekly income if you are over State Pension age and on a low income. It is separate from the State Pension itself. Many people assume they are not eligible because they own their home, have some savings, or receive a small private pension. That assumption is often wrong.
Martin Lewis has repeatedly described Pension Credit as one of the most underclaimed benefits in the UK. Age UK estimates around 800,000 eligible pensioners are not claiming it, missing out on an average of £3,900 per year each. If you have a parent, relative, or neighbour over 66 who is on a low income, checking their eligibility costs nothing.
Components
The two parts of Pension Credit
Pension Credit has two components. You can receive one or both.
Guarantee Credit tops up your weekly income to a minimum level. For 2026/27 that minimum is:
Single person
£218.15 per week
Couple
£332.95 per week
If your weekly income from State Pension, private pensions, savings, and other sources is below those figures, Guarantee Credit makes up the difference. This is the part that unlocks the Warm Home Discount automatically and other payments.
Savings Credit is available only to people who reached State Pension age before 6 April 2016. It rewards people who saved for retirement. The maximum you can receive is £17.01 per week for a single person or £19.04 for a couple. You can receive Savings Credit on top of Guarantee Credit if you qualify for both.
Eligibility
Who qualifies
You must be over State Pension age (currently 66) and living in Great Britain. Your weekly income must be below the Guarantee Credit threshold of £218.15 (single) or £332.95 (couple).
Income counted includes your State Pension, any private or workplace pension, most other benefits, and an assumed income from savings over £10,000 (£1 per week for every £500 above £10,000). Savings below £10,000 are not counted.
Income not counted includes Attendance Allowance, Disability Living Allowance, Personal Independence Payment, and certain other disability-related payments.
You can own your home and still qualify. You can have a small private pension and still qualify. The fastest way to check is to call the Pension Credit claim line or use the eligibility checker at gov.uk.
If you receive any means-tested benefit such as Universal Credit, Housing Benefit, or Council Tax Reduction, and you are over 66, there is a strong chance you also qualify for Pension Credit. Contact the Pension Service to check.
Gateway benefits
What Pension Credit unlocks
Claiming Pension Credit does not just top up your income. It acts as a gateway to several other payments and discounts.
- Warm Home Discount: £150 automatically applied to your electricity bill each winter if you receive Guarantee Credit and your name is on the electricity account.
- Winter Fuel Payment: confirmed for 2025/26 for all pensioners. Pension Credit is not required to receive it under current rules, but claiming Pension Credit means you definitely receive it.
- Cold Weather Payment: £25 for each 7-day period where average temperatures hit 0°C or below in your area.
- Free TV licence: if you are 75 or over and receive Pension Credit, your TV licence is free.
- Housing Benefit: you may qualify for additional Housing Benefit on top of Pension Credit if you rent your home.
- Council Tax Reduction: most councils apply a significant reduction to council tax for Pension Credit recipients. Contact your local council directly.
- NHS benefits: free NHS dental treatment, free sight tests, and help with glasses costs.
Examples
How much you could receive
The amount varies depending on your current income, savings, and circumstances. These are illustrative examples based on 2026/27 figures.
Example 1: Single pensioner with State Pension only
State Pension: £169.50 per week (full new State Pension)
Guarantee Credit threshold: £218.15
Pension Credit award: £48.65 per week
Annual gain: approximately £2,530 plus gateway benefits
Example 2: Single pensioner with State Pension and small private pension of £30 per week
Total weekly income: £199.50
Guarantee Credit award: £18.65 per week
Annual gain: approximately £970 plus gateway benefits
Example 3: Couple with combined State Pensions
Combined income: £339 per week
Threshold for couples: £332.95
In this case the couple would not qualify for Guarantee Credit but may qualify for Savings Credit if either partner reached State Pension age before April 2016.
The only way to get an accurate figure for your situation is to contact the Pension Service directly.
Backdating
The three-month backdating rule
If you are eligible, you can ask the Pension Service to backdate your claim by up to three months. You do not need to give a reason for the delay. The money is paid as a lump sum alongside your first payment.
For a single pensioner receiving £48.65 per week in Pension Credit, three months of backdating adds approximately £630 to the first payment.
You must apply for backdating when you make your claim. Ask for it specifically. It is not applied automatically.
Application
How to apply
Pension Credit is not applied for automatically. You must make a claim.
Phone (easiest): 0800 99 1234
Monday to Friday, 8am to 6pm. Free to call. An agent takes your details over the phone. You do not need to complete a form.
Online: gov.uk/pension-credit/how-to-claim
Takes around 20 minutes if you have your National Insurance number, bank details, and income details to hand.
By post: the Pension Service can send a paper form if you call the number above and ask.
What you need:
- Your National Insurance number
- Your bank account details
- Details of your income including State Pension, private pensions, and other benefits
- Details of any savings or investments
- If you are a couple, the same details for your partner
The Pension Service can also appoint someone else to claim on your behalf if you are unable to manage your own affairs.
You can also use a benefits calculator such as the one at entitledto.co.uk or Turn2us.org.uk to check your likely entitlement before calling. Both are free and do not share your details.
Supporting others
If you are helping someone else claim
If you are helping a parent or relative who may qualify, Age UK runs a free benefits check service. Call Age UK's advice line on 0800 678 1602 (free, 8am to 7pm daily).
Citizens Advice also helps people check eligibility and complete the claim. Find your local Citizens Advice office at citizensadvice.org.uk.
FAQ
Pension Credit questions
Does owning my home affect Pension Credit eligibility?
No. Owning your home does not affect your eligibility for Pension Credit. The property you live in is not counted as savings or capital.
I have savings. Does that stop me qualifying?
Savings below £10,000 are not counted at all. Above £10,000, the Pension Service assumes you receive £1 per week of income for every £500 over that threshold. So £15,000 in savings adds £10 to your assumed weekly income. You may still qualify even with moderate savings.
Can I claim Pension Credit if I already receive Universal Credit?
Universal Credit and Pension Credit cannot normally be received at the same time. When you reach State Pension age, you are generally expected to move from Universal Credit to Pension Credit. Contact the Pension Service for guidance on your specific situation.
How is Pension Credit paid?
Pension Credit is paid directly into your bank, building society, or credit union account, usually every four weeks. You can request payment every week or every two weeks if preferred.
Will claiming Pension Credit affect my other benefits?
Claiming Pension Credit can increase your entitlement to other benefits including Housing Benefit, Council Tax Reduction, and the Warm Home Discount. It does not reduce your State Pension or most other payments.
I claimed Pension Credit before and was refused. Should I try again?
Yes, if your circumstances have changed or if the previous assessment was more than 12 months ago. Eligibility rules and thresholds change each year. A previous refusal does not prevent you from claiming again.
Key terms explained
- Guarantee Credit: The part of Pension Credit that tops up your weekly income to the minimum threshold. Unlocks the Warm Home Discount automatically.
- Savings Credit: The part of Pension Credit that rewards people who saved for retirement. Available only to those who reached State Pension age before 6 April 2016.
- State Pension age: Currently 66 for both men and women in the UK.
- Gateway benefit: A benefit that automatically unlocks or increases eligibility for other payments. Pension Credit is the most significant gateway benefit for pensioners.
- Backdating: Applying for a benefit to start from an earlier date than your application. Pension Credit can be backdated up to three months.
Check the other support you may be entitled to
Use the support finder to see which schemes may apply to your household, then read the relevant guides for application steps.
Use the support finderWhile you are reviewing your energy costs, it may also be worth checking whether a cheaper tariff is available at your postcode. Compare at Utility Matchmaker →