Finance expert Martin Lewis urges UK pensioners to check their eligibility for Pension Credit, a benefit that could deliver annual savings of up to £3,000. Government data reveals that over 900,000 of the 2.3 million eligible retirees currently fail to claim this essential support. Recent increases for the new tax year expand eligibility, making it vital for low-income state pensioners to act now.
Pension Credit not only supplements weekly income but also grants access to additional perks, such as a free TV licence and energy bill discounts.
A Real-Life Success Story
Martin Lewis shared a compelling example from a pensioner who followed the advice. “Many of your success emails make me smile, but this recent one below had me beaming,” Lewis stated. “I’ve long waged a communications battle against the hideously underclaimed and overcomplex Pension Credit system.”
“Terribly, this crucial top-up for state pensioners on the lowest incomes is still being missed out on, using the Government’s own numbers, by over 900,000 of the 2.3m eligible. And as it’s just been increased for the new tax year, even more people are now eligible, some who weren’t before. So here’s some inspiration, showing the power of Pension Credit as a gateway benefit – even if it isn’t worth that much itself.”
A retired couple, aged 83 and 76, both receiving state pensions, applied successfully. The wife explained: “By a direct result of Martin and the Government impressing on the older generation to apply for Pension Credit, I have saved almost £3,000 in the last year.”
Their Pension Credit award of £6.10 per week triggered backdated benefits, eliminating council tax for the year—a £2,500 saving. Additional gains included a free TV licence, Warm Home Discount, and reduced water bills, totaling over £3,000 annually. “This has made such a difference to my husband and me, with less worry over the cost of living,” she added. “I am still budgeting very carefully, but with less pressure and anxiety.”
Who Qualifies for Pension Credit?
Pension Credit comes in two forms: Guarantee Credit and Savings Credit.
Guarantee Credit requires State Pension age (currently 66) and weekly income below government thresholds: £238 for singles or £363.25 for couples. Higher amounts apply for those who are disabled, carers, or with specific housing costs.
Savings Credit applies if you or your partner reached State Pension age before April 6, 2016, with minimum qualifying income of £208.07 weekly for singles or £329.75 for couples.
How Much Can You Receive?
Guarantee Credit tops up income to £238 weekly for singles or £363.25 for couples, with extras for disabilities, caring duties, or housing. Savings Credit offers up to £17.96 weekly for singles or £20.10 for couples, based on income and savings (including assumed income from capital over £10,000).
Check Eligibility and Apply Today
Use the official Pension Credit calculator on GOV.UK for a quick eligibility check and payment estimate. Alternatively, call the Pension Credit helpline at 0800 99 1234 (8am to 6pm, Monday to Friday) to start your claim.
