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Find out more8 things to know about pension credit
Pension credit is a gateway to other benefits, such as this year's Winter Fuel Payment
1.4 million pensioners receive pension credit, but an estimated 880,000 eligible households are missing out, according to the latest figures.
Pension credit has come under the spotlight after Chancellor Rachel Reeves announced only those claiming this or other means-tested benefits would be eligible for the Winter Fuel Payment this year.
Here, Which? reveals eight things you need to know about pension credit, including what it’s worth and how to check your eligibility.
1. It can top up your weekly income to £332.95
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 are over state pension age (66), single and your income is less than £218.15 a week, then guarantee credit will top you up to that amount. For a couple, the combined income figure is £332.95.
Your income includes your state pension, other pensions, employment or self-employment earnings and most social security benefits.
If you're a carer, have severe disabilities or need to cover certain housing costs, you might qualify for more guarantee credit.
- Find out more: pension credit explained
2. You might be eligible for savings credit
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. If you reached SPA on or after 6 April 2016, you can still get guarantee 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: how much do you need in retirement?
3. You can get it even if you have savings
Pension credit is separate from your state pension and having savings, a private pension or owning a home are not necessarily barriers to receiving it.
If you have £10,000 or less in savings and investments, this will not affect your entitlement to guarantee or savings credit.
If you have more than £10,000, every £500 over £10,000 counts as £1 income a week. For example, if you have £11,000 in savings, this counts as £2 income a week.
- Find out more: 5 retirement regrets and how to avoid them
4. It’s a gateway to other benefits
Depending on your circumstances, there are some additional allowances and benefits that you may get via pension credit in addition to the Winter Fuel Payment:
- If you're a carer and are entitled to Carer's Allowance, you could get an additional £45.60 per week (2024-25) with the carer addition.
- If you're severely disabled and eligible for disability benefits, you could get an additional £81.50 per week (2024-25) with the Severe Disablement Allowance.
- If you're responsible for a child or you have to pay housing costs, you may also be eligible for a higher amount.
- You may also be entitled to the Warm Home Discount – a payment of £150 (2024-25) to help those struggling to pay their energy bills during winter.
- If you or someone you live with is over 74 and receives pension credit, you can apply for a free TV licence.
So it's worth claiming pension credit, even if you're only entitled to a few pounds, as it can help you to qualify for other benefits.
- Find out more: the perks and benefits of being retired
5. You need to apply soon to keep the Winter Fuel Payment
The Winter Fuel Payment is an annual payment to help pay for your gas or electric heating in winter. If entitled, you would usually receive it at the end of January.
This year, the winter fuel payment will be restricted to those on pension credit or other means-tested benefits, following a speech made by the new Chancellor Rachel Reeves.
It’s been confirmed by the government that in 2024-25, it will be worth £300 for households with someone aged 80 and over, and £200 for households with someone aged 66-79.
The qualifying week will be 16-22 September, and anyone who is entitled to pension credit for at least one day of the qualifying week will have automatic entitlement to Winter Fuel Payment.
The last date for making a backdated claim for pension credit (assuming you meet the entitlement conditions for the previous three months) is 21 December.
6. It takes minutes to check if you’re eligible
You can easily check if you’re eligible for the benefit by 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 between Monday to Friday from 8am to 6pm.
7. You can apply before your 66th birthday
You can start your application up to four months before you reach state pension age.
You can apply any time after you reach state pension age but your application can only be backdated by three months. This means you can get up to three months of pension credit in your first payment if you were eligible during that time.
- Find out more: how much could the state pension pay in 2025?
8. You can apply online, by phone or post
If eligible, you can apply for pension credit in three ways:
- Online you can use the online service if you have already applied for your state pension.
- Phone you can call the pension credit claim line on 0800 99 1234 between Monday - Friday, 8am-6pm.
- Post print and fill in the pension credit claim form or call the claim line to request a form.
To claim, you will need your National Insurance number, information about your income, savings and investments, and your bank account details.
