The Department for Work and Pensions (DWP) has officially announced an increase in Pension Credit for couples, raising the standard minimum guarantee to £346.60 per week starting April 2025.
This change is aimed at helping low-income pensioners cope with rising costs and ensuring they can afford essential living expenses.
Despite the importance of Pension Credit, over 850,000 eligible pensioners fail to claim it each year, missing out on financial support and additional benefits.
If you or a loved one is retired and struggling financially, this guide explains who qualifies, the benefits available, and how to apply.
| Aspect | Details |
|---|---|
| New Pension Credit Rate (Couples) | £346.60 per week from April 2025 |
| Eligibility Age | Both partners must reach State Pension age (currently 66) |
| Income Limit | Below £346.60 per week (combined) |
| Savings Impact | Savings above £10,000 may reduce entitlement |
| Other Benefits | Council tax reduction, free NHS services, free TV licence (75+), housing support |
| How to Apply | Online, phone, or post (DWP) |
| Official DWP Website | gov.uk/pension-credit |
The increase to £346.60 per week for couples will provide a vital financial boost for retirees facing rising energy bills, food costs, and healthcare expenses. Claiming Pension Credit can unlock additional benefits, ensuring a better quality of life during retirement.
Pension Credit
Pension Credit is a government benefit designed to help retirees on low incomes. It is separate from the State Pension and provides extra financial support to those who qualify. There are two main components:
Guarantee Credit
- Tops up weekly income if it falls below a minimum level.
- New 2025 rates:
- £346.60 per week for couples
- £201.05 per week for single pensioners
Savings Credit
- Provides extra payments for pensioners who have modest savings.
- Only available to those who reached State Pension age before 6 April 2016.
Increase
The cost of living crisis has made it difficult for pensioners to afford basic necessities. According to the Office for National Statistics (ONS), inflation for essentials like food, housing, and energy bills has averaged over 7% annually in recent years.
This increase in Pension Credit will provide much-needed financial relief, helping pensioners cover their daily expenses.
Who Is Eligible?
To qualify for Pension Credit, you must meet the following criteria:
Age Requirement
- At least one partner in a couple must have reached State Pension age (currently 66).
Income Limits
- Your combined household income (including pensions, wages, and certain benefits) must be below £346.60 per week.
- For single pensioners, the limit is £201.05 per week (from April 2025).
- Some benefits, like Disability Living Allowance (DLA) and Personal Independence Payment (PIP), do not count as income.
Residency
- You must live in England, Scotland, or Wales.
- Northern Ireland has separate Pension Credit rules.
Savings
- Savings under £10,000 do not affect your entitlement.
- Savings over £10,000 reduce Pension Credit by £1 per week for every £500 saved above this amount.
Real-Life Example
John and Susan, a retired couple in Birmingham, have a combined weekly income of £310. Under the new rules, they will receive a top-up of £36.60 per week, bringing their income to £346.60 per week.
By claiming Pension Credit, they also qualify for council tax discounts, free NHS services, and a Warm Home Discount, significantly reducing their living costs.
Benefits
Pension Credit doesn’t just increase your weekly income—it unlocks many other financial benefits:
Council Tax Reduction
- Many pensioners pay little to no council tax.
- Some may qualify for 100% council tax relief, depending on their local authority.
Free NHS Services
- Free prescriptions, dental care, and eye tests.
- Help with hospital travel costs.
Cold Weather Payments
- £25 extra payment for each 7-day period of very cold weather (November–March).
Free TV Licence
- Available to pensioners over 75 receiving Pension Credit.
- Saves £159 per year on TV licence fees.
Housing Benefit
- Helps cover rent costs for low-income pensioners.
Warm Home Discount
- A one-off discount on winter electricity bills.
Mortgage Interest Payments
- Support for pensioners still paying off a mortgage.
How to Apply
Applying for Pension Credit is quick and straightforward.
Online
- Visit the official government website: gov.uk/pension-credit.
By Phone
- Call the Pension Credit claim line at 0800 99 1234.
- Open Monday to Friday, 8 AM – 6 PM.
By Post
- Request a paper application form by calling the DWP.
- Fill it out and send it along with required documents.
Apply Early
- Claims can be backdated for up to 3 months if you were eligible during that period.
- The earlier you apply, the sooner you receive payments.
Claim Pension Credit Now
Many pensioners miss out on extra financial support simply because they don’t realise they are eligible.
Even if you only qualify for a small amount of Pension Credit, it can open the door to thousands of pounds in extra benefits.
By applying now, pensioners can secure financial stability and reduce their cost of living in retirement.
FAQs
Who qualifies for the £346.60 Pension Credit increase?
Couples where at least one partner has reached State Pension age and their combined income is below £346.60 per week.
How do I apply for Pension Credit?
You can apply online at gov.uk, by phone at 0800 99 1234, or request a postal application.
What other benefits can I claim with Pension Credit?
You may qualify for council tax reductions, free NHS services, and a free TV licence if over 75.
Does savings impact my Pension Credit?
Savings over £10,000 reduce your Pension Credit by £1 per week for every £500 saved above this amount.
Can I backdate my Pension Credit claim?
Yes, you can backdate a claim by up to 3 months if eligible during that period.
