The Department for Work and Pensions (DWP) has confirmed a Pension Credit age rise set to take effect in July 2026 for claimants with certain birthdays. This change is part of the State Pension age increase from 66 to 67, brought forward by eight years under the Pensions Act 2014.
State Pension Age Increase Timeline
According to the DWP, the State Pension age for men and women will increase to 67 between 2026 and 2028. The government has also altered the phasing of this increase, so that instead of reaching State Pension age on a specific date, people born between 6 April 1960 and 5 March 1961 will reach their State Pension age at 66 years plus a specified number of months. For individuals born after 5 April 1969 but before 6 April 1977, the State Pension age was already set at 67 under the Pensions Act 2007.
Pension Credit Components
Pension Credit consists of two parts: Guarantee Credit and Savings Credit. Guarantee Credit provides a guaranteed level of income for those over State Pension age. It is calculated by comparing your income with an amount the government deems necessary for living. Additional amounts may be available for those with disabilities, carers, individuals with children, or those with housing costs. Savings Credit is available to those who reached State Pension age before 6 April 2016. New claims can only be made if you reached State Pension age before this date, though existing claimants can continue to receive it. Savings Credit is based on the level of retirement provision you have made and can be paid alongside Guarantee Credit or on its own.
Eligibility and Conditions
No National Insurance contributions are required to qualify for Pension Credit. Some income and capital affect the credit, while others are disregarded. There is no upper capital limit. Claimants can work and receive Pension Credit, though most earnings are taken into account as income. Pension Credit is not taxable and can be paid to homeowners, tenants, contract holders in Wales, and those living with family, friends, in a care home, or in hospital. It is administered by the Pension Service, part of the DWP.
Detailed Timetable for Age Increase
The DWP has provided a specific timetable for the State Pension age increase from 66 to 67, which also applies to Pension Credit eligibility:
- April 6, 1960 – May 5, 1960: 66 years and 1 month
- May 6, 1960 – June 5, 1960: 66 years and 2 months
- June 6, 1960 – July 5, 1960: 66 years and 3 months
- July 6, 1960 – August 5, 1960: 66 years and 4 months
- August 6, 1960 – September 5, 1960: 66 years and 5 months
- September 6, 1960 – October 5, 1960: 66 years and 6 months
- October 6, 1960 – November 5, 1960: 66 years and 7 months
- November 6, 1960 – December 5, 1960: 66 years and 8 months
- December 6, 1960 – January 5, 1961: 66 years and 9 months
- January 6, 1961 – February 5, 1961: 66 years and 10 months
- February 6, 1961 – March 5, 1961: 66 years and 11 months
- March 6, 1961 – April 5, 1977: 67 years
This means that individuals born on or after March 6, 1961, will have to wait until age 67 to qualify for Pension Credit. The DWP advises claimants to check their exact birth date against this timetable to understand when they will become eligible.
