State pensioners are set to receive a confirmed £483.60 annual boost to their Pension Credit payments from April, on top of their regular state pension. The increase follows a 3.9% wage growth figure, which the Treasury has confirmed will translate into a £9.30 per week rise for a single pensioner, or £483.60 per year.
Pension Credit increase confirmed
Pension Credit, unlike the main part of the state pension, is not automatically uprated by the triple lock but is instead increased by wage growth. The rise was confirmed in the Autumn Budget by John Healey. For a couple, the increase is up £14.15 to £377.40 per week.
Pension Credit is a pension-age benefit that increases weekly income for those below a certain level. It is means-tested, meaning those with other income such as savings, salary, or property income will not be able to claim it if they exceed the threshold.
Who can benefit
While the basic new state pension maxes out at £241.30 (which will go up to £250), this is only for those with a full National Insurance record. Some who receive less than this in their weekly payments will be able to claim Pension Credit to top up the difference to close to the same as the full state pension anyway.
Older state pensioners can benefit too, as they receive less in their weekly state pension payments (£192 per week as of April even with a full National Insurance record) and can use Pension Credit to top up most of the difference to the new state pension.
Underclaiming and additional benefits
According to savings firm Raisin, the benefit is underclaimed, meaning many who could get it are still not receiving it. Raisin states: “Pension Credit is a tax-free financial benefit for pensioners who are on a low income. However, many people don’t realise they’re eligible to claim it.”
“According to the Department for Work and Pensions, in 2025, approximately 1.7% of eligible people failed to claim Pension Credit, worth a total of £100m.”
Pension Credit is also a ‘gateway benefit’ that can allow access to various other benefits, handouts, and discounts, such as a free TV Licence, a Council Tax discount, the Warm Home discount, Housing Benefit, and free NHS eyecare and dental care.
