A guide to Pension Credit
What is Pension Credit? How does it work? What's the difference between Savings Credit or Guarantee Credit? We'll walk you through what you need to know
Key takeaways
A pension credit is designed to help older people with day-to-day costs and is different to your state pension
Minimum income levels for Guarantee Credit for 2025/26 are £227.10 per week for single people and £346.60 per week for couples
To get Savings Credit, you’ll need to be bringing in more than £189.90 if you’re single and £301.22 if you're in a couple. You'll need to have reached State Pension age before 6 April 2016 to claim this
What is Pension Credit?
Pension Credit is a financial top-up designed to help older people with day-to-day living costs. It’s separate from the State Pension and must be applied for through the government website. Even if you have savings or other assets, you might still qualify.
Pension Credit claimants can also access other benefits, such as free dental care, discounted Council Tax, Warm Home Discount, Housing Benefit for those who are renting, and help with mortgage interest for homeowners.
According to Carers UK, four out of 10 people who are eligible for Pension Credit don’t claim it, so it’s always worth checking if you can. You may also be able to get additional help if you are severely disabled, are a carer or look after children.
How does Pension Credit work?
Pension Credit comes in two parts and you may be eligible for both when you apply:
Guarantee Credit
This part of Pension Credit tops up your income to ensure it reaches a guaranteed minimum level.
The threshold changes each financial year. For 2025/26, the minimum income levels are:
£227.10 per week for single people
£346.60 per week for couples
Savings Credit
Savings Credit is an extra payment for people who reached State Pension age before 6 April 2016 and have a small amount of savings or income on top of their basic State Pension – for example, from a workplace or private pension.
For the 2025/26 tax year, this works out as:
£17.30 per week if you're single
£19.36 per week if you're a couple
*Savings Credit is only available if you reached State Pension age before 6 April 2016.
What are the income and savings thresholds for Pension Credit eligibility?
In order to receive Pension Credit, your income and any savings will be taken into account on application.
If you have less than £10,000 in savings, this will not impact your Pension Credit claim. For every £500 over £10,000, £1 a week will be considered as income. So if you have £11,000 in savings, that will count as £2 of income a week.
It’s worth remembering that company or private pensions that have not yet been claimed are counted as income. And if you defer the State Pension, that amount still counts as income too.
The minimum weekly income thresholds are £227.10 per week for single people and £346.60 for couples.
To get Savings Credit, you’ll need to be bringing in more than £189.90 if you’re single, rising to £301.22 for couples.
Remember, you’ll need to have reached State Pension age before 6 April 2016 to claim Savings Credit. At that time, the retirement ages were 65 for men and 63 for women.
How do I apply for Pension Credit?
You can apply for Pension Credit via the Gov.uk website if you’re from England, Scotland, Wales or Northern Ireland.
You can apply up to four months before you reach retirement age. Applications can be backdated, but only by three months.
You’ll need:
National Insurance number
Bank details
Information about any savings, income and investments you have
The government says it takes roughly 20 minutes to apply for Pension Credit. You can also apply by phone by calling 0800 99 1234 or post by printing out the claim form.
Am I likely to be accepted for Pension Credit?
If you’re over the current State Pension age, currently 66, you will be accepted for Guarantee Credit if your weekly earnings don’t exceed the weekly minimum thresholds of £227.10 per week for single people and £346.60 for couples.
For Savings Credit, you’ll be accepted if you reached State Pension age before 6 April 2016 (which was 63 for women and 65 for men at the time) and match the criteria of earning more than £189.90 if you’re single, rising to £301.22 for couples.
If you have large amounts of savings and earn more than the weekly minimum for Guarantee Credit, you are unlikely to be accepted.
However, if you feel you are eligible and are rejected for Pension Credit, you can challenge that decision as part of a process called mandatory reconsideration.
Is Pension Credit taxable?
No, Pension Credit is tax-free. Recipients do not need to have made National Insurance pension contributions to be eligible, unlike the State Pension.
How much could I receive in pension credit?
If you are eligible for Pension Credit, you can top up your weekly income through Guarantee Credit to £227.10 per week for single people and £346.60 for couples.
Savings Credit can add up to £17.01 per week if you’re single and £19.04 per week if you’re a couple.
If you’re severely disabled, you could get an additional £82.90 a week if you claim any of these other benefits:
Attendance Allowance
The middle or highest rate from the care component of Disability Living Allowance (DLA)
The daily living component of Personal Independence Payment (PIP)
Armed Forces Independence Payment
The daily living component of Adult Disability Payment (ADP) at the standard or enhanced rate
Carers for other adults can get £46.40 a week if they also receive Carer’s Allowance, Carer Support Payment, or if they’ve claimed Carer’s Allowance but aren’t being paid because they already get another benefit paying a higher amount.
Those looking after young people under 20 can claim £67.42 a week for every child, rising to £78.10 for the first child (as long as they were born before 6 April 2017). Children aged 16–20 must be in approved training or studying for GCSEs, A levels or equivalent.
If any of the children being cared for have a disability, it’s possible to claim:
£36.54 a week if they get DLA, PIP or ADP
£114.12 a week if they’re blind, receive the highest rate care component of DLA or CDP, or the enhanced daily living component of PIP or ADP
How does Pension Credit work if I have a partner?
You can claim Pension Credit if you have a partner. However, you’ll both need to be above State Pension age. Only one person can apply, as the Pension Credit payment will be made to one person to cover both of you.
Can I claim the State Pension and Pension Credit?
Yes, you can claim the State Pension and Pension Credit, as they are separate.
Pension Credit is designed to top up any income, ensuring that those above State Pension age have a greater minimum income.
What happens if my circumstances change while I'm on Pension Credit?
It’s your responsibility to inform pension services of any changes to your personal or financial circumstances. You can do this via the government website.
Such changes include a change of address, the death of a partner, stopping looking after dependents or changing your bank.
Are there any other services available to offer additional support?
Yes. Remember that claiming Pension Credit can help you access additional support, such as the Warm Home Discount, Council Tax discounts, housing benefit for those renting, help with mortgage interest for homeowners, free TV licence for over 75s and free NHS dental treatment.
Other useful guides
We have a range of guides to help you navigate your pensions decisions:
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