The Department for Work and Pensions has increased the state pension for 2026, providing more money to claimants. State pensioners are now receiving a range of benefits, freebies, and discounts in May. The new DWP rates have raised the full state pension to £241 per week. In addition to the state pension, retirees can access a variety of other perks and benefits.
On top of the state pension, you can claim Pension Credit and eight other benefits. If you live with a partner and one of you is of pension age while the other is not, benefit entitlement can be complex, personal finance experts warn. It is crucial to know what you are owed, especially as global conflicts continue to impact household finances.
Pension Credit – £325 per month
Pension Credit provides extra money for living costs if you are over State Pension age and on a low income. It can also help with housing costs such as ground rent or service charges. You might get extra help if you are a carer, severely disabled, or responsible for a child or young person. Pension Credit is separate from your State Pension, and you can claim it even if you have other income, savings, or own your home. The average Pension Credit award is over £3,900 per year and opens doors to other support, including the Winter Fuel Payment, help with housing costs, council tax, and heating bills. This amounts to an extra £325 per month.
Housing Benefit – up to £1,000 per year
Pensioners who receive the Guarantee element of Pension Credit and rent their home may qualify for the maximum level of Housing Benefit from their local council. While the amount varies, estimates from MoneySavingExpert suggest it could be worth around £1,000 per year. You can claim Pension Credit if you are of State Pension age and on a low income, and you must live in England, Scotland, or Wales. Savings, a private pension, or owning a home are not necessarily barriers to receiving it. When you apply, your income is calculated, and if you have a partner, your income is combined. If your income is higher, you may still be eligible if you have a disability, care for someone, or have housing costs.
Free TV Licence – £180 per year
Anyone aged 75 or over who claims Pension Credit can apply for a free TV licence, saving £180 annually. The government recognises the financial pressures on households and is committed to ensuring the BBC’s funding model is sustainable, fair, and affordable. The Labour government has committed to the licence fee for the remainder of this Charter Period. To support the public, the Simple Payment Plan allows spreading payments through smaller instalments. Free licences remain available for over-75s on Pension Credit, with reduced fees for care home residents and blind individuals.
Council Tax Discount – up to £2,200 per year
Pension Credit claimants can also receive a Council Tax reduction, with the exact amount depending on your local council. Discounts can range from around £550 for a 25% reduction on a typical Band D bill, up to around £2,200 for a full 100% discount. The government advises that you could be eligible if you are on a low income or claim benefits, and your bill could be reduced by up to 100%. You can apply if you own your home, rent, are unemployed, or working.
Free NHS Prescriptions – £9.90 per item
Some groups are automatically entitled to free NHS prescriptions, while others can apply for certificates. Certain prescribed items are always free, including contraceptives and medication given to hospital inpatients. You are entitled to free NHS prescriptions if you or your partner get Pension Credit Guarantee Credit or Pension Credit Guarantee Credit with Savings Credit. If you get Pension Credit Savings Credit on its own, you are not automatically entitled.
Free Eye Care – up to £215
If you receive any amount of the Guarantee element of Pension Credit, you are also entitled to NHS help with eye care, including eye tests and vouchers towards glasses or contact lenses. According to MoneySavingExpert, this support could be worth up to £215, depending on your prescription. You can also get free NHS prescriptions if you have a valid war pension exemption certificate and your prescription is for your accepted disability.
Free NHS Dental Treatment – up to £1,000 per year
Pensioners who qualify for the Guarantee element of Pension Credit can also receive free NHS dental treatment, covering everything from routine check-ups to dentures. MoneySavingExpert estimates this could be worth up to £1,000 per year. The NHS advises that if you know you are not entitled to free prescriptions, or if your exemption certificate has expired, do not claim. Pharmacy staff will inform you of the cost. If you are not currently entitled, you could save money with a Prescription Prepayment Certificate or the NHS Low Income Scheme.
Royal Mail Redirection Discount – £24
Pension Credit claimants are also entitled to a discount on Royal Mail’s redirection service when moving home. You must be in receipt of Pension Credit and Universal Credit (which includes Child Tax Credit, Housing Benefit, Income Support, Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance, and Working Tax Credit). You must provide proof of the benefit dated within the last six months and be moving to another UK address. The service normally costs £84, but those receiving Pension Credit save £24.
Attendance Allowance – £456 per month
Attendance Allowance is a benefit for people over State Pension age who need help with personal care or supervision due to illness or disability. There are two weekly rates, and the amount depends on how much help you need. The allowance does not necessarily need to be spent on care; many people use it for other types of help in the home or equipment to maintain independence, such as paying bills, getting meals delivered, or covering taxi costs. The higher rate is worth £114 per week or £456 per month.
