Pension Credit and Housing Benefit form a powerful combination for pensioners renting their homes. Here’s how the two benefits connect and how to claim both.
For the wider Pension Credit picture, including eligibility, savings and linked support, use the main Pension Credit hub.
For the wider rent-support picture, including LHA, DHPs and council-tax help, use the main Housing Benefits & Support hub.
How They Work Together
| Benefit | What It Does | Who Administers |
|---|---|---|
| Pension Credit | Tops up your income to a minimum level | DWP |
| Housing Benefit | Covers your rent costs | Local council |
The Passport Effect
Receiving Pension Credit Guarantee Credit acts as a passport to:
- Full Housing Benefit (no income deductions)
- Full Council Tax Reduction
- Warm Home Discount
- Cold Weather Payments
- Free TV licence (if 75+)
Claiming Housing Benefit Alongside Pension Credit
If You Already Get Pension Credit
| Step | Action |
|---|---|
| 1 | Contact your local council |
| 2 | Apply for Housing Benefit (separate form/application) |
| 3 | Provide your Pension Credit award letter |
| 4 | Provide your tenancy agreement and rent details |
| 5 | Council calculates HB — Guarantee Credit = maximum HB |
If You’re Claiming Both for the First Time
| Step | Action |
|---|---|
| 1 | Call Pension Credit helpline: 0800 99 1234 |
| 2 | Start your Pension Credit claim |
| 3 | Ask DWP to notify your council about Housing Benefit |
| 4 | Your council may contact you, or you may need to apply separately |
| 5 | Both claims can be backdated |
How Housing Benefit Is Calculated
With Pension Credit Guarantee Credit
If you receive Guarantee Credit, Housing Benefit covers your full eligible rent — no taper applies.
| Housing Type | What’s Covered |
|---|---|
| Social housing (council/HA) | Full rent minus any non-dependant deductions |
| Private rented (within LHA rate) | Full LHA rate for your area |
| Private rented (above LHA rate) | LHA rate only — you pay the excess |
Without Guarantee Credit (Savings Credit Only)
If you only receive Savings Credit, your Housing Benefit is calculated based on your income:
- Your income is compared against an ‘applicable amount’
- 65% of excess income is deducted from your maximum HB
- The calculation is more complex but often still results in substantial HB
Non-Dependant Deductions
If other adults live with you (adult children, friends), their income can lead to deductions from your Housing Benefit:
| Non-dependant’s Gross Weekly Income | Weekly Deduction |
|---|---|
| On certain benefits or under 25 on UC | Nil |
| Under £176 | £19.30 |
| £176 - £255.99 | £44.50 |
| £256 - £337.99 | £61.20 |
| £338 - £419.99 | £100.65 |
| £420+ | £116.75 |
Exception: No non-dependant deductions if you (the claimant) receive Attendance Allowance, DLA care, or PIP daily living component.
Local Housing Allowance Rates
For private tenants, Housing Benefit is capped at the Local Housing Allowance (LHA) rate:
| Bedrooms Allowed | Based On |
|---|---|
| 1 bedroom (shared rate) | Single, under 35, no dependants |
| 1 bedroom | Single (35+) or couple without children |
| 2 bedrooms | Plus 1 for children (certain rules apply) |
| 3 bedrooms | Plus bedrooms as needed |
| 4 bedrooms (maximum) | Maximum LHA covers |
Pensioners are exempt from the shared accommodation rate — if you’re over State Pension age and single, you qualify for the 1-bedroom rate.
Mixed-Age Couples
If one partner is over State Pension age and the other is under:
| Situation | What You Claim |
|---|---|
| Both over State Pension age | Pension Credit + Housing Benefit |
| One over, one under (new claim after May 2019) | Universal Credit (for both) |
| One over, one under (existing claim before May 2019) | May remain on Pension Credit + HB |
This is a significant issue — mixed-age couples on UC often receive less than they would on Pension Credit and Housing Benefit.
Mortgage Interest
If you own your home with a mortgage, Pension Credit can include help with mortgage interest through the Support for Mortgage Interest (SMI) scheme:
| Feature | Detail |
|---|---|
| What it covers | Interest on your mortgage (not capital repayments) |
| How it’s paid | As a loan secured against your property |
| Interest rate | Standard rate set by DWP |
| When it starts | After a 9-month waiting period on qualifying benefits |
| Maximum mortgage | £200,000 |
Backdating
| Benefit | Backdating |
|---|---|
| Pension Credit | Up to 3 months — automatic, no reason needed |
| Housing Benefit (pensioners) | Up to 3 months — must request and give good cause |
| Combined effect | Applying for both can unlock months of backdated payments |