Many pensioners wrongly assume owning a home or having savings automatically rules them out of Pension Credit.
Pension Credit is a means-tested benefit designed to help older people on low incomes by topping up weekly income and unlocking access to additional financial support. However, charities and welfare advisers have repeatedly warned that many pensioners miss out because they mistakenly believe homeowners are not eligible to claim.
Guidance on GOV.UK states that people can still qualify for Pension Credit if they own their home, have savings or receive a State Pension. An award of just £1 per week is enough to provide access to help with housing costs, heating bills and Council Tax.
The DWP recently confirmed nearly 78 per cent of all new claims for Pension Credit are processed – from initial application to award decision letter – within the target timeframe of 50 working days (10 weeks). This means older people on a low income making a new claim this month, could receive their first payment and any arrears by August.
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Married pensioners with a combined weekly income of less than £363.25 per week, or single pensioners with an income of below £238.00 could be eligible for Pension Credit.
For 2026/27, Pension Credit tops income up to:
- £238.00 a week for single people
- £363.25 a week for couples
Some people may receive more depending on their circumstances, including disability, caring responsibilities or housing costs.
What counts as income
Your income includes:
- State Pension
- other pensions
- earnings from employment and self-employment
- most social security benefits – for example, Carer’s Allowance
What does not count as income
Not all benefits are counted as income. For example, the following are not counted:
- Adult Disability Payment
- Attendance Allowance
- DWP Christmas Bonus
- Child Benefit
- Disability Living Allowance
- Pension Age Disability Payment
- Personal Independence Payment
- social fund payments like Winter Fuel Allowance
- Housing Benefit
- Council Tax Reduction
Your savings
Savings do not automatically prevent someone claiming Pension Credit, although they can affect how much is paid.
According to GOV.UK guidance, savings above £10,000 are taken into account when calculating entitlement.
If you have more than £10,000, every £500 over £10,000 counts as £1 income a week. For example, if you have £11,000 in savings, this counts as £2 income a week.
How to check eligibility for Pension Credit
Older people, or friends and family, can quickly check their eligibility and get an estimate of what they may receive by using the online Pension Credit calculator on GOV.UK here.
Alternatively, pensioners can contact the Pension Credit helpline directly to make a claim on 0800 99 1234 – lines are open 8am to 6pm, Monday to Friday.
Expert help and advice is also available from:
More details about claiming Pension Credit can be fond on GOV.UK here.
Other help if you get Pension Credit
If you qualify for Pension Credit you can also get other help, such as:
- Housing Benefit if you rent the property you live in
- Support for Mortgage Interest if you own the property you live in
- Council Tax discount
- Free TV licence if you are aged 75 or over
- Help with NHS dental treatment, glasses and transport costs for hospital appointments
- Help with your heating costs through the Warm Home Discount Scheme
- A discount on the Royal Mail redirection service if you are moving house
Mixed aged older couples and Pension Credit
In May 2019, the law changed so a ‘mixed age couple’ – a couple where one partner is of State Pension age and the other is under it – are considered to be a ‘working age’ couple when checking entitlement to means-tested benefits.
This means they cannot claim Pension Credit or pension age Housing Benefit until they are both State Pension age. Before this DWP change, a mixed age couple could be eligible to claim the more generous State Pension age benefits when just one of them reached State Pension age.
How to use the Pension Credit calculator
To use the calculator on GOV.UK, you will need details of:
- earnings, benefits and pensions
- savings and investments
You’ll need the same details for your partner if you have one. You will be presented by a series of questions with multiple choice answer options.
This includes:
- Your date of birth
- Your residential status
- Where in the UK you live
- Whether you are registered blind
- Which benefits you currently receive
- How much you receive each week for any benefits you get
- Whether someone is paid Carer’s Allowance to look after you
- How much you get each week from pensions – State Pension, private and work pensions
- Any employment earnings
- Any savings, investments or bonds you have
Once you have answered these questions, a summary screen shows your responses, allowing you to go back and change any answers before submitting. The Pension Credit calculator then displays how much benefit you could receive each week.
All you have to do then is follow the link to the application page to find out exactly what you will get from the DWP, including access to other financial support.
There’s also an option to print off the answers you give using the calculator tool to help you complete the application form quicker without having to look out the same details again. Try the Pension Credit Calculator for yourself or your family member to make sure you’re receiving all the financial support you are entitled to claim.
Who cannot use the Pension Credit calculator?
You cannot use the calculator if you or your partner:
- are deferring your State Pension
- own more than one property
- are self employed
- have housing costs (such as service charges or Crown Tenant rent) which are neither mortgage repayments nor rent covered by Housing Benefit
How to make a claim
You can start your application up to four months before you reach State Pension age. You can claim any time after you reach State Pension age but your claim can only be backdated for three months.
This means you can get up to three months of Pension Credit in your first payment if you were eligible during that time.
You will need:
- your National Insurance number
- information about your income, savings and investments
- your bank account details, if you’re applying by phone or by post
If you’re backdating your claim, you’ll need details of your income, savings and investments on the date you want your claim to start.
Apply online
You can use the online service if:
- you have already claimed your State Pension
- there are no children or young people included in your claim
To check your entitlement, phone the Pension Credit helpline on 0800 99 1234 or use the GOV.UK Pension Credit calculator here to find out how much you could get.
