What is Pension Credit?

Pension Credit is a benefit for people who are on a low income and have reached state retirement age.

The aim is to make sure everyone of qualifying age has a certain amount of income every week.

Pension Credit has two parts, Guarantee Credit and Savings Credit:

  • Guarantee Credit tops up your weekly income to a set amount, known as the ‘Standard minimum guarantee’. The 2023/2024 set amounts are £201.05 per week for single claimants and £306.85 for couples. You may be eligible for more if you are eligible for 'premiums', see below.
  • Savings Credit provides extra money for people over state pension age who have extra savings or investments. New claims are being phased out. Unless someone reached state pension age by 6th April 2016, they cannot make a new claim for the Savings Credit. People who already receive it will continue to do so.

Disability benefits such as Attendance Allowance, Personal Independence Payment or Disability Living Allowance are not included as ‘income’ for this purpose. 

The ‘Standard Minimum Guarantee’ is the minimum amount of money that the Government says you need to live on if you’re over state pension age. However, it can vary according to your circumstances. Additional amounts or ‘premiums’ can be added to this figure. Some examples of these additional amounts are:

  • £76.40 per week if you have a severe disability
  • £42.75 if you are a carer

Once any premiums are added, this figure becomes known as your ‘appropriate minimum guarantee’. Your actual income will be compared with this figure, and Pension Credit may be paid to cover any shortfall between the amounts. 

If you have savings over £10,000 this may reduce the amount you receive.

The free TV licence for people over 75 applies to people in receipt of either part of Pension Credit - Guarantee Credit or Savings Credit (or both).

Who can get Pension Credit? 

Pension Credit is available for people over the state pension age, who live in England, Wales and Northern Ireland. It is a good idea to have a benefits check to make sure you are getting everything you are entitled to. 

If you are going to become eligible for Pension Credit in the future (e.g. coming up to state pension age or about to have a drop in income) a claim can be made up to four months in advance of this change. Pension Credit can also be backdated for up to three months if the qualifying conditions are met. 

Pension Credit cannot be claimed if one member of a couple has reached pension age, but their partner has not.  

If you are a mixed age couple who didn’t claim Pension Credit before 15 May 2019, you will have to be assessed for Universal Credit to get this extra income, which doesn’t qualify you for a free TV licence.