The Department for Work and Pensions (DWP) has announced that from April 2025, eligible couples receiving Pension Credit will receive £346.60 per week.
This increase aims to help low-income retirees cope with the rising cost of living, ensuring they can afford daily essentials like food, utilities, and healthcare.
Despite its benefits, many pensioners are missing out on this financial support. Reports show that over 850,000 eligible retirees fail to claim Pension Credit, losing not just direct financial aid but also additional government benefits.
If you or someone you know may qualify, here’s everything you need to know about eligibility, benefits, and how to apply.
What’s Changing?
Starting April 2025, the new Pension Credit rates for couples will be:
| Aspect | Details |
|---|---|
| New Pension Credit Rate | £346.60 per week (for couples) |
| Eligibility Age | Both partners must be State Pension age (66+ in 2025) |
| Income Limit | Combined income must be below £346.60 per week |
| Savings Impact | Savings over £10,000 may reduce entitlement |
| Other Benefits | Council tax reduction, free NHS services, free TV license (75+), and more |
| How to Apply | Online, by phone, or via post |
| Official Website | gov.uk/pension-credit |
Pension Credit
Pension Credit is a government benefit designed to boost the income of low-income retirees. It is not the same as the State Pension—it is an extra payment to help pensioners meet their living costs.
There are two parts to Pension Credit:
- Guarantee Credit – Tops up your weekly income if it’s below a certain level.
- Savings Credit – Extra payment for those with modest savings or income (only available to those who reached State Pension age before April 6, 2016).
Increase
With inflation continuing to drive up costs, this increase provides critical financial relief for pensioners. According to the Office for National Statistics (ONS), inflation for essential goods (such as food and energy bills) has averaged over 7% annually in recent years. For retirees on fixed incomes, this increase ensures they can afford basic living expenses.
Who is Eligible
To qualify for Pension Credit, you must meet specific criteria:
Age Requirement
- At least one person in a couple must have reached State Pension age (66+ in 2025).
Income Limits
- Your combined income (from pensions, wages, and certain benefits) must be below £346.60 per week.
- For single applicants, the income threshold is £201.05 per week (2025 rate).
- Disability benefits, housing benefits, and some other social support payments do not count toward this limit.
Residency
- You must live in England, Scotland, or Wales.
- Northern Ireland has different Pension Credit rules.
Savings
- If you have over £10,000 in savings, your Pension Credit may be reduced.
- For every extra £500 above £10,000, your Pension Credit is reduced by £1 per week.
- Savings under £10,000 do not impact your eligibility.
Benefits
If you qualify for Pension Credit, you could also receive:
- Council Tax Reductions – Up to 100% off your council tax bill.
- Free NHS Services – Includes prescriptions, dental care, and eye tests.
- Cold Weather Payments – Extra support during cold months.
- Free TV License – Available for pensioners aged 75+.
- Housing Benefit – Helps with rent payments.
- Warm Home Discount – One-off discount on electricity bills.
- Mortgage Interest Assistance – Support for homeowners with existing mortgages.
Many pensioners do not realize that claiming Pension Credit automatically increases their eligibility for other government benefits.
How to Apply
Applying for Pension Credit is simple and can be done in three ways:
Online Application
- Visit the official UK government website: gov.uk/pension-credit
By Phone
- Call the Pension Credit claim line at 0800 99 1234 (Monday to Friday, 8 AM – 6 PM).
By Post
- Request a form by calling the Pension Credit claim line.
- Complete the form and send it to the DWP with the required documents.
Tip
- You can backdate your Pension Credit claim by up to 3 months if you were eligible during that period.
- Applying early ensures you do not miss out on payments.
Final Thoughts
The Pension Credit increase to £346.60 per week for couples in April 2025 is a significant financial boost for low-income retirees. Beyond direct financial support, claiming Pension Credit unlocks additional benefits such as council tax reductions, free NHS services, and energy bill assistance.
Despite its benefits, many pensioners do not claim Pension Credit, missing out on vital financial assistance. If you or a loved one qualifies, it’s crucial to apply as soon as possible and take full advantage of the support available.
FAQs
What is the new Pension Credit rate for couples in 2025?
From April 2025, eligible couples will receive £346.60 per week.
Who is eligible for Pension Credit?
Couples where at least one partner has reached State Pension age (66+) and have a combined income below £346.60 per week.
What extra benefits can I get with Pension Credit?
You may qualify for council tax reductions, free NHS services, a free TV license (if 75+), and more.
How do I apply for Pension Credit?
You can apply online at gov.uk/pension-credit, by phone at 0800 99 1234, or by post.
Can I backdate my Pension Credit claim?
Yes, you can backdate your claim by up to 3 months if you were eligible during that period.
