Pension credit: could you be missing out on thousands of pounds?

Brits are missing out on a staggering £1.7 billion in unclaimed Pension Credit, which could make a huge difference to those feeling the strain of rising bills.

Despite 850,000 eligible retirees not claiming, Pension Credit could boost your income by up to £2,677 a year—and unlock an extra £10,000 in perks and benefits.

If you or someone you know is over State Pension age, this article explains what Pension Credit is, the benefits it unlocks, and how to claim what you’re entitled to.

What is pension credit?

Pension Credit is a means-tested benefit that helps top up the income of retirees on a low income. It’s split into two parts:

Guarantee Credit: Tops up your weekly income to a minimum level of £218.15 for single people or £332.95 for couples.
Savings Credit: A small additional payment for those who saved towards their retirement. This is only available to people who reached State Pension age before 6^th April, 2016.

Many people assume they won’t qualify, but it’s always worth checking. Even a small boost can unlock extra financial support that could significantly ease the pressure on your budget.

The hidden perks of pension credit

Claiming Pension Credit doesn’t just increase your income—it can also unlock extra support worth up to £10,000 a year per person. These hidden perks include:

Council tax reductions: Save over £1,000 annually depending on your local council.
Cold Weather Payments: Get £25 for each week of freezing weather to help with heating costs.
Free NHS dental treatment and prescriptions: Potentially save hundreds of pounds a year.
Free TV Licence for over-75s: Worth £159 annually.
Housing Benefit: Help towards rent, easing monthly outgoings.

These perks could make a real difference to anyone feeling the pinch of rising bills.

How much money can you have in the bank on pension credit?

Many people worry that having savings or a small private pension will mean they don’t qualify for Pension Credit—but the rules are surprisingly generous.

You can still claim if you have savings up to £10,000 without it affecting your eligibility.
You still qualify for Pension Credit if you have more than £10,000 saved. However, £1 of income will be assumed for every £500 over this amount.

For example, if you have £12,000 in savings, only £4 of extra income will be factored into the calculation. This means it’s always worth checking, even if you’ve built up some savings.

How much is Pension Credit a week?

Pension Credit aims to ensure retirees meet a minimum income level each week:

£218.15 a week for single people
£332.95 a week for couples

If your income is below these amounts, Pension Credit will top it up. Even if your income is slightly above this threshold, you could still qualify for extra support if you have housing costs, disabilities, or caring responsibilities.

How to claim pension credit

Claiming Pension Credit is simpler than many people think, and it could be the best five minutes you spend this year. Here’s how to do it:

Check your eligibility:

You must be over the State Pension age (currently 66).
Your weekly income must be below £218.15 if single or £332.95 if you’re a couple.

Use the Government’s Pension Credit calculator or call the Pension Credit Helpline on 0800 99 1234 to find out if you qualify.

Gather your information: You’ll need details of your income, savings, investments, and any pensions.

Apply: You can claim Pension Credit:

Online at Pension Credit: Overview - GOV.UK
By calling the Pension Credit Helpline
By post using a form you can request from the Government.

Why claiming pension credit matters

With the cost-of-living crisis pushing bills higher, Pension Credit could be a financial lifeline for many older people. Aside from increasing your weekly income, it unlocks valuable benefits that could save you thousands of pounds each year.

If you think you might qualify—or know someone who could—take a few minutes to check. Even a small amount of Pension Credit could lead to big savings.

By claiming what you’re owed, you’ll not only ease financial stress but also gain access to essential support. Don’t leave money on the table—check your eligibility today.

Disclaimer: We make every effort to ensure content is correct when published. Information on this website doesn't constitute financial advice, and we aren't responsible for the content of any external sites.

Fiona Peake

Personal Finance Writer

Fiona is a personal finance writer with over 7 years’ experience writing for a broad range of industries before joining Ocean in 2021. She uses her wealth of experience to turn the overwhelming aspects of finance into articles that are easy to understand.