State pensioners can receive an average of £358 per month on top of their Department for Work and Pensions (DWP) state pension under new Prime Minister Andy Burnham. Mr Burnham, who succeeded Sir Keir Starmer on Monday, has confirmed that Pension Credit will rise by 4.8%, a change announced in April and now being implemented under his leadership.
What is Pension Credit and Who Qualifies?
Pension Credit is a benefit worth an average of £4,300 per year, designed to help those over State Pension age with low incomes cover living costs. The benefit tops up weekly income to £238 for single claimants and £363.25 for couples. Additional amounts, known as ‘Guarantee Credit’, are available for those with extra responsibilities or costs.
Beyond the basic top-up, Pension Credit unlocks further support, including help with housing costs such as ground rent or service charges, council tax reductions, and free television licenses for those over 75.
Government Spending Boost and Economic Context
Between 2026 and 2027, the government will inject an additional £6 billion into State Pensions and pensioner benefits, reflecting Mr Burnham’s prioritisation of the cost of living. This comes as the new Chancellor, John Healey, outlined the government’s economic direction this week.
“I want to make life more affordable,” Healey told the Treasury. “Bringing down the cost of living and beginning a new era of devolution and public control. Not political buzzwords, but principles to underpin the decisions made in this building and in this government. And today, you’ve seen the way that we have cut tax from electricity bills just to give people a little more breathing space with their household finances in the winter. This is the way that we start to build a new economy. This is the way that we start to build new hope. This is the way that we start to advance working people in this country.”
Impact on State Pensioners
The 4.8% rise means that Pension Credit recipients will see an average monthly increase of £358 based on annual payment cycles. For a single person, this equates to a weekly top-up to £238, while couples can receive up to £363.25 per week. The extra financial support aims to alleviate pressure on pensioners facing rising costs.
Mr Burnham’s government has signalled a continued focus on cost-of-living measures, with the £6 billion boost being a key component of its strategy to support older and vulnerable citizens.
