The Department for Work and Pensions (DWP) is providing state pensioners aged over 66 with a significant annual payment of up to £4,300 through Pension Credit. This financial boost comes amid the ongoing Cost of Living crisis, offering a valuable lifeline for retirees who may be unaware of their eligibility.
Unclaimed Benefits Amount to Billions
Hannah Martin, founder of Rich Retiree, notes that many retirees do not realize they qualify for Pension Credit. According to the DWP, approximately £2.5 billion in Pension Credit goes unclaimed each year. An estimated 910,000 families who are entitled to the benefit do not apply, missing out on an average annual payment of £4,300.
Eligibility Criteria for Pension Credit
Pension Credit consists of two parts: Guarantee Credit and Savings Credit. Guarantee Credit tops up weekly income to a guaranteed minimum level. Savings Credit provides extra money for those with savings or higher income than the basic State Pension.
To qualify for Guarantee Credit, you must have reached State Pension age (66 for both men and women in April 2026, rising to 67 in 2028). Your weekly income must be less than £238 if single, or less than £363.25 if you are a couple. For Savings Credit, you must have reached State Pension age before 6 April 2016, and if in a couple, both must have reached that age before that date.
There is no savings limit for Pension Credit, but savings over £10,000 will affect the amount received. Age UK advises, "You have nothing to lose by applying – and potentially a lot to gain. Pension Credit doesn’t just top up your income. It’s also your passport to other benefits."
Real-Life Impact
Steve, 68, shared with Age UK: "Claiming Pension Credit means my other half and I have that bit extra. It’s really helped." Personal finance experts encourage those over State Pension age struggling financially to check their eligibility and apply.
