The Department for Work and Pensions (DWP) is urging people of State Pension age to check if they qualify for Pension Credit, even if they have savings, own their home, or receive a private pension. The DWP is launching a Pension Credit Week of Action from October 12 to 16, aimed at challenging common misconceptions that can prevent older people from making a claim.
One of the key messages is that having money in savings does not automatically rule someone out. The first £10,000 is ignored when Pension Credit entitlement is calculated, and there is no upper capital limit for Pension Credit. For every £500, or part of £500, held above £10,000, the DWP treats a claimant as having £1 of additional weekly income when working out their entitlement.
Common misconceptions addressed
The DWP said: “Many people mistakenly believe that owning a home, having savings or receiving a private pension automatically makes them ineligible. It doesn’t. As a result, many people of State Pension age who could be entitled to Pension Credit never make a claim.”
The department is also stressing that owning your home is not taken into account when entitlement is calculated, while Pension Credit can be paid on top of the State Pension.
How much is Pension Credit?
Pension Credit is a means-tested benefit for people over State Pension age on a low income. Guarantee Credit can top up weekly income to £238 for a single person or £363.25 for couples during the 2026/27 financial year. Some people can receive more if they are a carer, have a severe disability, or are responsible for a child or young person.
An additional £86.05 a week can be available for severe disability, while the additional amount for carers is £48.15. The exact amount someone receives will depend on their individual circumstances. People who reached State Pension age before April 6, 2016 may also be eligible for Savings Credit in certain circumstances, which can provide up to £17.96 a week for a single person or £20.10 for a couple.
How to check eligibility
Older people, or friends and family, can quickly check their eligibility and get an estimate of what they may receive by using the online Pension Credit calculator on GOV.UK. Alternatively, pensioners can contact the Pension Credit helpline directly to make a claim on 0800 99 1234, with lines open 8am to 6pm, Monday to Friday. Expert help and advice is also available from Independent Age, Income Max, Citizens Advice, and Age UK.
If you qualify for Pension Credit, you can also get other help, such as Housing Benefit if you rent, Support for Mortgage Interest if you own, Council Tax discount, free TV licence if aged 75 or over, help with NHS dental treatment, glasses and transport costs for hospital appointments, help with heating costs through the Warm Home Discount Scheme, and a discount on the Royal Mail redirection service if moving house.
To use the calculator on GOV.UK, you will need details of earnings, benefits, pensions, savings and investments, and the same details for your partner if you have one. You will be presented with a series of questions with multiple choice answers, including your date of birth, residential status, where in the UK you live, whether you are registered blind, which benefits you receive, how much you receive each week for any benefits, whether someone is paid Carer’s Allowance to look after you, how much you get each week from pensions, any employment earnings, and any savings, investments or bonds you have.
Once you have answered these questions, a summary screen shows your responses, allowing you to go back and change any answers before submitting. The calculator then displays how much benefit you could receive each week. There’s also an option to print off the answers to help you complete the application form quicker. Full details about Pension Credit can be found on GOV.UK.
