Pension Credit could be worth thousands of pounds a year — plus it unlocks other benefits like free TV licences and Council Tax Reduction. Here’s how to calculate your entitlement.
For the wider rates, savings and claiming framework, use the main Pension Credit hub.
Pension Credit Rates 2026-27
| Component | Single | Couple |
|---|---|---|
| Guarantee Credit minimum | £218.15/week | £332.95/week |
| Savings Credit maximum | £17.01/week | £19.04/week |
| Severe disability addition | £81.50/week | £81.50/week each |
| Carer addition | £45.60/week | £45.60/week |
How the Calculation Works
Step 1: Your Appropriate Amount
Start with the basic Guarantee Credit level and add any applicable premiums:
| Component | Weekly Amount |
|---|---|
| Basic (single) | £218.15 |
| Basic (couple) | £332.95 |
| Severe disability (single) | + £81.50 |
| Severe disability (couple, both qualify) | + £163.00 |
| Carer premium | + £45.60 |
| Housing costs (mortgage interest etc.) | + Actual amount |
Your appropriate amount = Basic + any premiums
Step 2: Calculate Your Income
Income includes:
| Counted as Income | Not Counted |
|---|---|
| State Pension | Attendance Allowance |
| Private/occupational pensions | DLA/PIP |
| Other benefit income (ESA, bereavement) | Housing Benefit |
| Earnings (with some disregards) | Council Tax Reduction |
| Tariff income from savings above £10,000 | War Disablement Pension (up to £10/week disregarded) |
Step 3: Guarantee Credit Calculation
Guarantee Credit = Your Appropriate Amount minus Your Income
If the result is positive, that’s your weekly Guarantee Credit. If negative or zero, you don’t qualify for Guarantee Credit (but may still get Savings Credit).
Worked Examples
Example 1: Single Person, State Pension Only
| Item | Amount |
|---|---|
| State Pension | £180/week |
| Other income | None |
| Savings | £5,000 (below £10,000, ignored) |
| Appropriate amount | £218.15/week |
| Total income | £180/week |
| Guarantee Credit | £38.15/week (£1,983.80/year) |
Example 2: Couple, Mixed Income
| Item | Amount |
|---|---|
| His State Pension | £180/week |
| Her State Pension | £100/week |
| Her small private pension | £20/week |
| Savings | £12,000 (tariff: £4/week) |
| Total income | £304/week |
| Appropriate amount | £332.95/week |
| Guarantee Credit | £28.95/week (£1,505.40/year) |
Example 3: Single Person With Disability
| Item | Amount |
|---|---|
| State Pension | £175/week |
| Receives Attendance Allowance | Not counted as income |
| No one receives Carer’s Allowance for them | Severe disability addition applies |
| Appropriate amount | £218.15 + £81.50 = £299.65/week |
| Total income | £175/week |
| Guarantee Credit | £124.65/week (£6,481.80/year) |
Savings Credit
Savings Credit rewards people who have some income above the basic State Pension level:
| Feature | Detail |
|---|---|
| Who qualifies | Must have reached State Pension age before 6 April 2016 |
| How it works | 60% of qualifying income above the ‘savings credit threshold’ |
| Threshold (single) | £189.80/week |
| Threshold (couple) | £301.22/week |
| Maximum (single) | £17.01/week |
| Maximum (couple) | £19.04/week |
Note: Savings Credit is only available to people who reached State Pension age before 6 April 2016. If you reached State Pension age after this date, only Guarantee Credit applies.
How Savings Affect Your Claim
| Savings Amount | Effect on Pension Credit |
|---|---|
| Up to £10,000 | No effect — fully ignored |
| £10,001 - £16,000 | Tariff income of £1/week per £500 over £10,000 |
| Over £16,000 | Still eligible — no upper limit for Guarantee Credit |
This is a major difference from Universal Credit, which has a £16,000 savings cap.
Tariff Income Examples
| Savings | Tariff Income Added |
|---|---|
| £10,000 | £0/week |
| £11,000 | £2/week |
| £12,500 | £5/week |
| £15,000 | £10/week |
| £20,000 | £20/week |
| £50,000 | £80/week |
Using the Official Calculator
Online Calculator
Visit gov.uk/pension-credit-calculator:
- Enter whether you’re single or a couple
- Enter your State Pension amount
- Enter any other pension income
- Enter your savings and investments
- Enter housing costs (mortgage interest, service charges)
- The calculator shows your estimated weekly Pension Credit
Phone Calculator
Call the Pension Credit helpline: 0800 99 1234 (free, Mon-Fri 8am-6pm) An adviser will calculate your entitlement and can start your claim in the same call.