Everything about Pension Credit including Guarantee Credit and Savings Credit. How much you could get, how to claim, and the extra benefits it unlocks like Winter Fuel Payment.
·5 min read
Pension Credit is a weekly benefit for people over State Pension age on low income. It’s hugely underclaimed — around 850,000 eligible people don’t claim it.
What is Pension Credit?
Two Parts
Part
What It Does
Guarantee Credit
Tops up income to minimum level
Savings Credit
Rewards those who saved for retirement
Who Can Claim
Requirement
Details
Age
State Pension age or over
Residency
Live in UK
Income
Below Pension Credit limits
Couples
Both assessed together
Current Rates (2026/27)
Status
Weekly Minimum Income
Single
£218.15
Couple
£332.95
If your income is below these amounts, Guarantee Credit tops it up.
Guarantee Credit
How It Works
Your Situation
What Happens
Income below minimum
Topped up to minimum
No other income
Get full £218.15/£332.95
State Pension only
Get difference as Pension Credit
Other income
Reduces Pension Credit pound for pound
Example Calculations
Example
Calculation
Single, State Pension £169.50
£218.15 - £169.50 = £48.65/week Pension Credit
Couple, one pension £169.50
£332.95 - £169.50 = £163.45/week Pension Credit
Single, pension + £30 other
£218.15 - £199.50 = £18.65/week
Additional Amounts
Circumstance
Extra Weekly Amount
Severe disability
£81.50
Carer
£45.60
Disability (couple, both qualify)
£163.00
Housing costs
Mortgage interest, service charges
Savings Credit
What It Is
Feature
Details
Purpose
Reward for having saved for retirement
Who gets it
Those with income over basic State Pension from savings/pension
Maximum
£17.01/week (single) or £19.04/week (couple)
Phasing out
Gradually reducing for higher incomes
Important Limitation
Who Cannot Get Savings Credit
Details
Reached State Pension age after 6 April 2016
New State Pension rules
Younger partner if couple
Uses younger person’s pension age
How It’s Calculated
Factor
Impact
Qualifying income
Must be above threshold
Income threshold
£189.80 (single) / £301.22 (couple)
Above threshold
60p for each £1 up to maximum
Above Guarantee Credit level
Reduces by 40p per £1
How Savings Affect Your Claim
Capital Rules
Savings Amount
Treatment
Under £10,000
Ignored
£10,000 - £16,000
£1/week assumed for every £500
Over £16,000
May still qualify if costs high
What Counts as Savings
Counted
Not Counted
Bank accounts
Your home
Building society
Personal possessions
ISAs
Business assets (if trading)
NS&I
One vehicle
Shares
Surrender value of life insurance
Investment property
Examples
Savings
Impact on Claim
£8,000
No effect
£12,000
£4/week assumed income
£15,000
£10/week assumed income
£18,000
May still qualify — apply anyway
What Pension Credit Unlocks
Since 2024 Changes — Crucial Benefits
Benefit
What You Get
Winter Fuel Payment
£200 (under 80) or £300 (80+)
Free TV licence
If 75 or over
Cold Weather Payment
£25 per cold week
Warm Home Discount
£150 off electricity
Maximum Help With Housing
Benefit
What You Get
Housing Benefit
Maximum rate
Council Tax Reduction
Usually 100% reduction
Mortgage interest
Help with interest payments
NHS Benefits
Benefit
Details
Free NHS dental
All treatments
Free sight tests
Plus voucher for glasses
Free prescriptions
Already free if 60+
Wigs and fabric supports
If needed
Travel to hospital
Fares reimbursed
Other Passported Benefits
Benefit
Details
Funeral Expenses Payment
If arranging funeral
Sure Start Maternity Grant
For grandchildren you’re caring for
Social tariffs
Cheaper broadband from some providers
How to Claim
Before You Apply
Step
Action
Check eligibility
Use gov.uk calculator
Gather information
Income, savings, housing costs
Find documents
NI number, bank statements
Ways to Claim
Method
Details
Phone
0800 99 1234 (free, 8am-6pm Mon-Fri)
Online
gov.uk/pension-credit/how-to-claim
Post
Request form by phone
Information Needed
Information
Why
National Insurance number
Identity
Bank details
Payment
Income details
State Pension, private pension, other
Savings
All accounts
Housing costs
Rent, mortgage interest, service charges
Partner’s details
If applicable
Claiming by Phone
What to Expect
Details
Call 0800 99 1234
Free call
Duration
20-40 minutes
Helpful
Advisor guides you through
Recommended
Often easiest method
Backdating
Important Rule
Feature
Details
How far back
Up to 3 months
Automatic
Request during claim
No extra form
Just ask
Lump sum
Backdated amount paid in one go
Example
Scenario
Outcome
Entitled for 5 years
Only get 3 months back
Claim in March for Feb start
Get Feb + March if eligible both
Should have claimed earlier
Can only go back 3 months
Mixed-Age Couples
Rules
Situation
What Happens
One partner pension age, one under
Usually must claim Universal Credit
Exception
Already on Pension Credit/Housing Benefit before May 2019