The Department for Work and Pensions (DWP) has announced a 4.8% increase in Pension Credit for the 2026/27 financial year, effective from July 2026. This means eligible state pensioner couples will receive an extra £66.60 per month, while single pensioners see their weekly allowance rise to up to £238.
New Weekly Rates and Monthly Impact
From July, single pensioners eligible for Pension Credit will receive up to £238 per week, up from the previous rate. For couples, the joint weekly rate increases to £363.25, a rise of £16.65 per week from the former £346.60. This translates to an additional £66.60 per month for couples.
Pension Credit is a means-tested benefit designed to help those over State Pension age with low income cover living costs. Existing claimants remain eligible unless their circumstances change.
Eligibility and Claiming Rules
If your partner is under State Pension age, you generally cannot make a new claim for Pension Credit. However, exceptions apply if you reached State Pension age before 15 May 2019 and have been claiming Housing Benefit since before that date. Individuals can also claim alone if their partner cannot due to immigration status.
Applicants must provide details of their weekly income, including private pensions, State Pension, earnings from employment or self-employment (averaged if variable), and benefits like Jobseeker's Allowance or Employment and Support Allowance.
Savings and Investments Impact
Savings and investments over £10,000 affect the amount of Pension Credit received. For every £500 above £10,000, the DWP treats the claimant as having £1 per week of income. Property owned (except the main home), shares, and bank savings are all considered.
If a single person's weekly income is below £238, Guarantee Credit tops it up to that amount. For couples with joint income under £363.25, the top-up applies. Claimants may qualify for extra amounts if they receive severe disability or carer's additions, or if they pay a mortgage.
