The Department for Work and Pensions (DWP) has confirmed that Pension Credit rates have increased, offering eligible state pensioners a weekly top-up of £238 for single claimants and £363.35 for couples. The new rates took effect in April 2026, providing a significant financial boost for older Brits on low incomes.
Eligibility and qualifying criteria
Pension Credit is designed to help those over State Pension age with living costs. To qualify, applicants must have reached State Pension age and have a low income. For couples, both partners must have reached State Pension age, or one must be receiving housing benefit for people over State Pension age.
When applying, the DWP calculates income jointly for couples. Income considered includes State Pension, other pensions, earnings from employment and self-employment, and most social security benefits such as Carer’s Allowance.
Income not counted for Pension Credit
Certain benefits are disregarded when calculating income for Pension Credit. These include:
- Adult Disability Payment
- Attendance Allowance
- Child Benefit
- Christmas Bonus
- Council Tax Reduction
- Disability Living Allowance
- Housing Benefit
- Pension Age Disability Payment
- Personal Independence Payment
- Scottish Adult Disability Living Allowance
- Social fund payments like Winter Fuel Payment
Savings and investments impact
Claimants with £10,000 or less in savings and investments will not see their Pension Credit entitlement affected. However, for savings above £10,000, every £500 over the threshold counts as £1 of weekly income. For example, £11,000 in savings would add £2 per week to deemed income.
How to apply for Pension Credit
Eligible individuals can apply up to four months before reaching State Pension age, or at any time after. Applications can be backdated by up to three months, meaning the first payment may include up to three months of arrears if the claimant was eligible during that period.
Applications can be made online, by phone at 0800 99 1234, or by post. To apply, you will need your National Insurance number, details of income, savings and investments, and bank account information (bank name, sort code, account number).
