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9 pensioner perks and benefits to boost your income
Claiming pension credit can unlock a raft of benefits that can save you money
Only six in 10 pensioners entitled to get pension credit did so in the 2021-22 tax year leaving around £2.1bn unclaimed, according to the latest figures from the Department for Work and Pensions (DWP).
This equated to 880,000 families missing out on £2,200 each on average, which could help households in need during the cost of living crisis.
Pension credit has historically been underclaimed by those who are eligible yet it can be a gateway to other benefits, including NHS dental treatment and the Warm Home Discount.
Here, Which? explains how pension credit works and the income-boosting benefits you might be entitled to.
How does pension credit work?
Pension credit tops up the state pension for those on a low income.
It can be claimed for you and your partner, whether that's your husband, wife, civil partner or someone you live with as though you are married/civil partners. If you have a partner, your collective income and capital are taken into account when your pension credit is calculated.
Pension credit is made up of two parts:
- Guarantee credit This tops up your weekly income to a minimum guaranteed level of £201.05 in 2023-24 if you're single and £306.85 for a couple. If you're a carer, have severe disabilities or certain housing costs, you might qualify for more guarantee credit.
- Savings credit This is available for people who reached retirement age before 6 April 2016, with incomes of at least £174.49 if you're single, or £277.12 if you're part of a couple. However, if you're a couple and your partner reached state pension age before 6 April 2016, you could still qualify. Savings credit pays out £15.94 to a single person and £17.84 to a couple, per week, if you meet the qualifying criteria.
There is a pension credit calculator on the gov.uk website to help you check your eligibility for pension credit. The calculator also gives an estimate of the pension credit payment due, based on your earnings, benefits, pensions, savings and investments.
- Find out more: how pension credit works
How do I claim pension credit?
There are two ways you can claim pension credit. You can either fill in and post the Pension Credit claim form to your local pension centre, or phone The Pension Service on 0800 99 1234.
To claim, you will need your National Insurance number, information about your income, savings and investments and your bank account details.
Pension credit can be backdated for up to three months as long as you have satisfied the entitlement conditions during that period. You'll need to request backdating on the claim form as it's not automatic.
A pension credit claim can also be lodged up to four months in advance if you're approaching the qualifying age or are about to become entitled for another reason.
If you're helping someone else check if they're eligible, you can call the Pension Service on their behalf if they can't do it themselves.
9 pensioner perks and benefits to boost your income
Even if you're only entitled to a small amount of pension credit, it's still worth claiming as it can help unlock heaps of other perks.
We outline some of the ways you can get extra retirement income via pension credit below, as well as other discounts and freebies available to retirees.
1. Housing Benefit
If you get pension credit you may get your some or all of your rent paid in full by your local authority.
When you claim pension credit, you might be asked if you want to make a claim for housing benefit at the same time. If not, you can contact your local council yourself and apply.
There’s no set amount of housing benefit, and what you get will depend on whether you rent privately or from a council.
If you own your home, you won't be eligible for housing benefit, but you could get help paying your mortgage interest.
2. Medical freebies and discounts
Once you reach 60, you can get free NHS prescriptions in England (they’re free for everyone in Scotland, Wales and Northern Ireland), plus free eye tests (free for everyone in Scotland). You’ll only be entitled to free NHS dental treatment if you’re receiving the guarantee credit part of pension credit.
If you get the guarantee credit part of pension credit, you can also claim help with travel costs to the hospital. To do this, tell the hospital (or the place where you're getting treatment) that you want to claim back the cost of your journey. They'll tell you what you need to do – you may need to show proof you're eligible to claim costs, such as your latest benefit letter.
Note that you get could a fine if you claim help with NHS costs when you're not entitled to it. The government's eligibility test can help you find out whether there are any NHS costs you can get help with.
- Find out more: how to save money on your prescriptions
3. Carer perks
If you're a carer and receive carer's allowance, you may get what's known as the 'carer addition' included in your pension credit payments. This is worth up to £42.75 per week.
To receive the carer addition, you need to spend at least 35 hours a week caring for someone who needs regular and substantial care.
4. Free TV Licence
In August 2020, the BBC introduced a new scheme that offers some over-75s a free TV Licence.
You can get a free TV Licence if you are 75 years or older and receive pension credit, or if your partner (living at the same address) receives pension credit.
5. Warm Home Discount
If you get the guarantee credit element of pension credit, you'll qualify for the Warm Home Discount.
You would have got £150 off your electricity bill for winter 2022-23 under the scheme.
The qualifying date is usually in July, and if you're eligible you should receive a discount the following winter.
You should receive a letter from DWP between October 2023 and January 2024 telling you how to get the discount if you qualify.
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Listen now6. Cold Weather Payment
The Cold Weather Payment scheme runs from 1 November 2023 to 31 March 2024 and gives £25 payments for each seven-day period of cold weather.
Cold weather is defined as the average temperature in your area being recorded as being 0°C or below.
You’ll be eligible for a cold weather payment if you claim any other income-related benefits, such as Pension Credit, Income Support or Universal Credit, and it will be paid automatically
You cannot get Cold Weather Payments if you live in Scotland - but you might get the annual £50 Winter Heating Payment instead. You’ll get this payment regardless of weather conditions in your area.
7. Winter fuel payment
If you were born on or before 25 September 1956, you could get between £100 and £300 to help meet the cost of your heating bills.
You’ll need to have lived in the UK for at least one day during the qualifying week (19-25 September in 2022).
If you receive the state pension or certain other benefits, you’ll usually get the payment automatically between November and December. The government announced a £300 cost of living top-up for 2022.
This year there'll also be a winter fuel payment boost, meaning eight million pensioners will get an extra £300. This will be sent automatically by the DWP from 1 November.
- Find out more: Cold Weather Payment, Winter Fuel Payment and Fuel Direct
8. Cheaper days out
Whether or not you're claiming pension credit, pensioners can get discounts on a range of leisure activities including:
- Museum visits: most museums offer concessions for senior citizens; English Heritage and National Trust also offer reduced memberships.
- Cinema tickets: Odeon, Vue and Empire offer cheaper tickets to pensioners.
- Sports tickets: older sports fans can get discounted matchday season tickets for football, cricket and rugby games. The cheaper tickets are usually available for those over the age of 65.
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9. Travel discounts
You can also save money on travel if you're over a certain age, such as:
- Free bus pass: in Wales, Scotland, Northern Ireland and London you can get a pass for free travel when you reach 60; in the rest of England you usually only become eligible for one when you reach state pension age.
- Senior railcard: available to those over 60, it costs £30 a year and enables you to get a third off standard and first class anytime, off-peak and advance fares.
- Some travel operators offer discounts for older people. For example, National Express has a Senior Coachcard, which costs £15 (plus £3 postage and packing) for 12 months travel and offers a third off your travel. You need to be 60 years old to apply.
Find out more: the perks and benefits of being retired
This article was first published on 6 June 2021 and has been updated multiple times since. It was last updated on 30 October 2023.
