Pension credit: 5 ways you may qualify without realising

Pensioners caring for a friend or loved one are among those being urged to check their eligibility for pension credit.

National charity Carers UK estimates that 880,000 households could be missing out on pension credit they're entitled to. This important benefit not only boosts eligible pensioners' income but also opens the door to additional support, including this year’s Winter Fuel Payment. 

Here, we break down what it’s worth and reveal five surprising ways you may qualify, including if you’re an unpaid carer.

How much is pension credit worth?

There are two parts to pension credit – guarantee credit and savings credit – and you may get one or both parts.

In 2024-25, if you're over the state pension age (66) and single, and your income is less than £218.15 a week, guarantee credit will top you up to that amount. For a couple, the combined income figure is £332.95.

Savings credit provides extra money if you’ve made some provision towards your retirement by saving, or with a pension other than the basic state pension. 

Only people who reached state pension age (SPA) before 6 April 2016 qualify to claim savings credit. The maximum savings credit you can get per week is £17.01 for a single person and £19.04 for a couple.

To qualify, you must have a minimum income in 2024-25 of £189.80 a week if you're single, and £301.22 a week if you're a couple. For every £1 by which your income exceeds this savings-credit threshold, your savings credit is reduced by 40p.

• Find out more: pension credit explained

5 surprising ways you may be eligible

With one in four eligible pensioners currently not claiming pension credit, here are five ways you may qualify without realising. 

1. You're an unpaid carer

Carers UK estimates that only about 100,000 unpaid carers who are pensioners get pension credit and the Carer Addition, suggesting many more could be missing out.

Eligible unpaid carers can get up £45.60 extra a week (£2,370 a year) through the Carer Addition to pension credit. However, the application process can be complex. 

To qualify, carers first need to apply for Carer’s Allowance, which requires them to spend at least 35 hours a week caring for someone who receives a disability benefit, such as Attendance Allowance or Personal Independence Payment.

Current benefit rules state that if someone’s state pension is more than £81.90 per week, you will not get the Carer's Allowance payment. However, carers still need to apply for Carer’s Allowance in order to prove they have an ‘underlying entitlement’ to the benefit, which would increase their chances of being eligible for pension credit and the amount of pension credit awarded. 

Carers UK has created a guide to help pensioners and their families through the process.

• Find out more: 8 things to know about pension credit

2. You own a home

Homeownership doesn’t disqualify you, because eligibility for pension credit is based on your income and not assets, such as property. This means you could quality for pension credit regardless of whether you own or rent your home.

However, owning a second property may affect your eligibility, because it’s counted as part of your income – unless specific conditions apply, such as actively trying to sell it or it being occupied by a close relative who is over state pension age or incapacitated.

• Find out more: how to get the winter fuel payment

3. You live in a care home

If you live in or move into a care home, you may still be entitled to pension credit because your eligibility will be calculated as if you were still living at home. 

However, if you are in a couple but one of you is permanently resident in a care home, you will be treated as two separate individuals rather than a couple, and eligibility for pension credit will depend on your individual levels of income and capital. 

If you are a temporary resident in a care home, perhaps for respite or a trial period, and your pension credit includes housing costs, these can usually continue to be paid for up to 13 weeks and sometimes up to 52 weeks.

• Find out more: care home costs explained

4. You have savings

If you have £10,000 or less in savings and investments, it won’t impact your pension credit eligibility.

Savings include any money you can readily access or financial products you could sell. For couples, the combined value of both partners' savings and capital is considered when determining eligibility.

These countable savings include:

• Cash and money in bank or building society accounts, even non-interest-paying current accounts
• National Savings & Investments products, such as savings accounts and Premium Bonds
• Stocks, shares and other investments
• Inheritance money
• Any pension pot you’re drawing from
• Property that isn’t your main residence

If you have more than £10,000, every £500 over £10,000 counts as £1 in income a week. For example, if you have £11,000 in savings, this counts as £2-worth of income a week.

• Find out more: the benefits of being retired

5. You've previously been rejected

If your pension credit application is rejected, you can reapply at any time, especially if your circumstances change – for example, if you start claiming a disability benefit, lose a partner or spend your savings. 

If you disagree with a rejection, you can ask the Department for Work and Pensions (DWP) for a written statement of reasons explaining the decision.

If you believe the decision is incorrect, you have the right to request a 'mandatory reconsideration', which is free and asks the DWP to review your application. This has to be done within one month.

Once the decision-maker has reconsidered, they’ll send you a mandatory reconsideration notice, which includes information about your right to appeal.

• Find out more: 5 ways to boost your state pension

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How to check if you're eligible for pension credit

If you think you may be eligible, it's worth using the government's pension credit calculator.

You’ll need details of your earnings, benefits and pensions, and your savings and investments. You’ll also need the same details for your partner if you live with them.

If you would prefer to have a chat with someone, you can use the Pension Service helpline on 0800 731 0469 from Monday to Friday, 8am-6pm.