Around 1.4 million low-income pensioners in the UK will see their Pension Credit payments rise by 3.9% from April 2027, in line with the increase in average weekly earnings, confirming new rates for the 2027-28 tax year.
The uplift, announced by the Department for Work and Pensions (DWP), matches the increase applied to both the basic and new State Pension, which will also rise in April in line with average wage growth. Pension Credit provides extra money to people who have reached State Pension age and are on a low income, and it is paid separately from the State Pension.
New weekly payment rates confirmed
In the current tax year, the benefit tops up weekly income to £238 for single claimants, or a joint weekly income of £363.25 for couples. From April, the 3.9% rise will take weekly payments to £247.30 for single pensioners and up to £377.40 per week for couples.
For single pensioners, the uplift represents a weekly payment increase of up to £9.30, or £483.60 more per year if entitled to the full amount. For couples, the rise adds up to £14.15 more to weekly payments, or a maximum of £735.80 extra per year.
How eligibility is calculated
When applying for Pension Credit, income is calculated taking into account the State Pension, other pensions, savings, earnings and any social security benefits, which can affect eligibility or reduce payments.
Pat McFadden, Secretary of State for Work and Pensions, confirmed the new rates, saying: "I am pleased to announce that the basic and full rate of the new State Pensions will be increased by 3.9%, in line with the increase in average weekly earnings in the year to May-July 2026."
He added: "This delivers on our triple lock commitment throughout this Parliament to increase these rates in line with the highest of growth in prices, growth in earnings or 2.5%. From April, the full annual rate of the new State Pension will increase by around £490. The full annual rate of the basic State Pension will increase by around £375."
Take-up campaign targets eligible households
The DWP said around 1.4 million pensioner households are already benefiting from Pension Credit and will receive the 3.9% boost, but hundreds of thousands of eligible pensioners may still be missing out on the support.
To boost take-up, the DWP last month began sending letters to 660,000 households urging pensioners to check their eligibility and start claiming the benefit, which is currently worth more than £4,500 on average per year. It also opens the door to other support, including a Council Tax discount, help with heating and energy costs, and a free TV licence for those over 75.
Minister for Pensions Torsten Bell said: "Far too many pensioners are missing out on support they're entitled to. Pension Credit is worth more than £4,500 a year on average and can make a real difference to people's finances, while also opening the door to help with bills and other everyday costs."
He added: "If you think you might be eligible, it's worth checking. We want to make sure pensioners get the support they're entitled to and don't miss out on money that could help them in retirement."
