The Department for Work and Pensions (DWP) is opening up a benefit worth up to £4,300 to more state pensioners by August, provided they submit their claims now. Pension Credit remains one of the most underclaimed benefits in the country, with as many as 760,000 eligible pensioners yet to claim it.
How Much is Pension Credit Worth?
Pension Credit is worth up to £4,300 per year and opens the door to additional discounts and freebies, such as a free TV licence from the BBC. The benefit consists of two parts: Guarantee Pension Credit and Savings Pension Credit.
Guarantee Pension Credit
This tops up your income to a guaranteed minimum amount set by the government. In the 2026/27 tax year, this is £238 a week for a single person and £363.25 for a couple. You could get a higher amount if you are a carer, disabled, or have certain housing costs. You may be eligible even if you have savings, a pension, or own your own home.
Savings Pension Credit
This is an extra payment for people who have saved money towards retirement. It is being phased out and can only be claimed if you reached State Pension age before 6 April 2016.
Additional Amounts
If you are entitled to Carer's Allowance (or Carer Support Payment in Scotland), you can get a Carer Addition of £48.15 per week (2026/27) added to your minimum amount. You may also qualify for a Severe Disability Addition of £86.05 per week (2026/27), or £172.10 if both you and your partner qualify.
Claiming Before July
DWP data shows that 78 per cent of new applications are processed within the target timeframe of 50 working days (10 weeks). This means those who claim this week could receive their first payment at the end of July or the start of August. For example, submitting a claim on June 3 could result in payment on July 23.
Pension Credit is a vital benefit that can significantly boost the income of eligible pensioners. The DWP encourages all those who think they may be entitled to apply as soon as possible to avoid missing out on these payments.
