State pensioners can boost their income by up to £8,329.90 with eight freebies and discounts available under new Prime Minister Andy Burnham. The money is up for grabs through several Department for Work and Pensions (DWP) benefits that are designed to support pensioner households with rising living costs, potentially giving them thousands of pounds worth of extra financial help.
Pension Credit as a Gateway Benefit
The income boost comes from the DWP benefit Pension Credit, which is available to pensioners in England, Scotland and Wales on a low income and is paid separately to the State Pension. Following a 4.8% uplift in April this year, the DWP says Pension Credit is now worth an average of £4,300 per year, topping up weekly income to £238 for a single person or joint weekly income to £363.25 for a couple.
But it’s not just the weekly payment that makes Pension Credit worth claiming, as it also acts as a gateway to other financial help, potentially unlocking a raft of freebies and discounts worth around £8,329.90 on average.
Declining Applications and Regional Disparities
According to the latest DWP statistics published in March, there was a 34% decrease in Pension Credit applications in the 2025/26 financial year compared to the year before, while 24% fewer claims were awarded in the same period. The DWP launched a trial at the end of last year to help boost the number of claims after analysis showed large regional disparities, with uptake lowest in the South West.
The new Prime Minister inherits the current Pension Credit system from his predecessors Sir Keir Starmer and ex-Chancellor Rachel Reeves, and with Burnham vowing to lead a “cost of living government”, it’s unlikely that this benefit will undergo a massive overhaul. Any potential changes to Pension Credit would not be announced until the Autumn Budget, expected in late October or early November.
Expert Comment on Missing Out
Sarah Pennells, consumer finance specialist at Royal London, said: “Pension Credit is a valuable benefit because it is a ‘gateway’ benefit. That means, if you’re able to claim it, you may also be able to get help with housing costs (through Council Tax discount and Housing Benefit or Support for Mortgage Interest).
“You’re also eligible for a free TV licence if you’re aged 75 or over and you may be able to get help with NHS dental treatment, prescriptions and transport costs.
“If you’re entitled to these benefits, the state help you get could be very valuable and that could make a real difference to your finances. However, hundreds of thousands of people are missing out on Pension Credit. Our research showed that two in five people over State Pension age hadn't checked to see if they were entitled to Pension Credit.”
Eligibility and How to Apply
To be eligible for Pension Credit, you must live in England, Scotland or Wales and have reached State Pension age. When you apply, your income is calculated, including your State Pension, other pensions, earnings from employment and self-employment, and most social security benefits. You can apply any time after reaching State Pension age, but your application can only be backdated by three months.
Eight Freebies and Discounts Worth Up to £8,329.90
Pension Credit – £4,300: Following a 4.8% uplift on April 6, Pension Credit now tops up weekly income to £238 if single or £363.25 for a couple. You must live in England, Scotland or Wales and have reached State Pension age.
Housing Benefit – £1,000: If you rent your home and get the Guarantee element of Pension Credit, you’re eligible for maximum Housing Benefit. Martin Lewis’ MSE says you could get around £1,000 per year.
Free TV Licence – £180: Anyone aged 75 and over claiming Pension Credit can get £180 off their TV Licence bill. As of April 1, the annual fee is £180.
Council Tax discount – £1,600: Pension Credit claimants can get a Council Tax discount. The amount varies by local council, from around £300 for a 25% reduction on a typical Band D bill up to £1,600 for a 100% discount.
Free NHS prescriptions – £9.90: In England, the NHS prescription charge is frozen at £9.90 for 2026/27. If you get the Guarantee Credit element of Pension Credit, you’re entitled to free prescriptions in England.
Free eye care – up to £215: If you get the Guarantee element of Pension Credit, you are entitled to help with NHS eye care, including a voucher for glasses or contact lenses worth up to £215.
Free NHS dental treatment – up to £1,000: Pensioners qualifying for the Guarantee element of Pension Credit are entitled to free NHS dental treatment, worth up to £1,000 per year.
Royal Mail redirection discount – £25: Pension Credit claimants get a discount on the Royal Mail redirection service when moving house. The service normally costs £87 for up to 12 months, but you pay £62 – a saving of £25.
