What is Pension Credit and are you eligible? (2026/27)

Pension Credit is a top-up that raises the weekly income of people over State Pension age to at least £238 if single or £363.25 for a couple in 2026/27. It is not an alternative to the State Pension but sits on top of it. You can qualify even if you own your home or have savings, and it can open the door to other help.

At a glance

• Guarantee Credit tops income up to £238 a week (single) or £363.25 (couple) in 2026/27.
• Extra amounts: £86.05 for severe disability, £48.15 for carers, plus some housing costs.
• Savings of £10,000 or less are ignored; above that every £500 counts as £1 a week of income.
• Claim by phone on 0800 99 1234, online or by post; claims can be backdated by three months.
• Getting it can lead to Housing Benefit, Council Tax Reduction, a free TV licence at 75 and over, and the Warm Home Discount.

What is Pension Credit?

Pension Credit has two parts. The Guarantee Credit tops up your weekly income to a set minimum, and the Savings Credit is a smaller extra for some people who saved for retirement. It is run by the Department for Work and Pensions through the Pension Service and covers England, Scotland and Wales. Northern Ireland has its own scheme.

It is means-tested, which means your income and savings are checked, but it is more generous to people with disabilities, carers and some housing costs than many expect. Checking costs nothing and takes a phone call.

Who is eligible?

You must live in England, Scotland or Wales and have reached State Pension age. If you have a partner, you apply together and your income is counted jointly. You are eligible as a couple if you have both reached State Pension age, or if one of you gets Housing Benefit for people over State Pension age.

What counts as income?

Counted: State Pension, other pensions, earnings from work and most social security benefits, including Carer’s Allowance. If you have deferred a personal or workplace pension or your State Pension, the amount you would get still counts.

Not counted: Attendance Allowance, Disability Living Allowance, Personal Independence Payment, Child Benefit, Housing Benefit, Council Tax Reduction and payments such as the Winter Fuel Payment.

What about savings and property?

If you have £10,000 or less in savings and investments, Pension Credit is not affected. Above £10,000, every £500 counts as £1 of weekly income, so £11,000 in savings counts as £2 a week. There is no upper savings limit for Guarantee Credit, and owning your home does not stop you claiming.

How much could you get?

The severe disability addition is for people who get Attendance Allowance, the middle or highest care rate of DLA, or the daily living part of PIP, among other benefits. The carer addition is for those who receive Carer’s Allowance, or have claimed it but are not paid because another benefit pays more. Savings Credit is only for people who reached State Pension age before 6 April 2016.

Worked examples (illustrations only)

• A single person on the full basic State Pension of £184.90 and no other income would be topped up by £53.10 a week to reach £238.
• The same person with a £30 a week private pension has income of £214.90 and would be topped up by £23.10.
• A single person on the full new State Pension of £241.30 who also gets Attendance Allowance (not counted as income) has a minimum of £324.05 (£238 plus £86.05), so would be topped up by £82.75.

Real awards depend on all your income, savings and housing costs, so ask the Pension Service to calculate yours. A low State Pension is a good reason to check.

What else can Pension Credit unlock?

• Housing Benefit if you rent, and Council Tax Reduction.
• Support for Mortgage Interest if you own your home.
• Cold Weather Payments of £25 for each 7-day period of very cold weather (average temperature of 0 degrees Celsius or below in your area) between 1 November 2026 and 31 March 2027, paid automatically.
• The Warm Home Discount, a one-off £150 discount on your electricity bill if your supplier is in the scheme and your name is on the bill (different rules apply in Scotland, and it is not available in Northern Ireland).
• A free TV licence if you are aged 75 or over.
• Help with NHS costs, including dental treatment, glasses and hospital travel, if you get the Guarantee Credit part.

This is why Pension Credit is sometimes called a gateway benefit. Our guides on the Winter Fuel Payment and Warm Home Discount and benefits for pensioners over 70 cover the wider picture, and Attendance Allowance and Pension Credit explains how the two work together.

How do you claim?

1. Gather your National Insurance number and details of income, savings and investments for you and any partner, plus bank details.
2. Apply by phone on 0800 99 1234 (Monday to Friday, 8am to 6pm), online if you have already applied for your State Pension, or by post with a claim form.
3. A friend or family member can phone for you if you cannot use the phone.
4. Ask for backdating. A claim can be backdated by three months, and you can start applying up to four months before reaching State Pension age.
5. If you disagree with a decision, ask for a mandatory reconsideration. Citizens Advice and Age UK can help with forms.

What about carers, care homes and changes?

If a carer claims Carer’s Allowance for you, tell the Pension Service first. GOV.UK says the person cared for will usually lose the severe disability addition in their own Pension Credit, so the household’s total can go up or down. See our Carer’s Allowance guide. A carer who is over State Pension age and receives Pension Credit may not be paid Carer’s Allowance if their State Pension is higher than the Carer’s Allowance rate, but their Pension Credit rises instead.

You must report changes in your circumstances, including a stay in a care home, changes in pensions, savings or investments, or moving in with a partner. A move into a care home can end an assessed income period, after which you have to report all changes. You can face a penalty or have to repay money if you give wrong information or fail to report a change. Our guide to State Pension and benefits in a care home explains what usually continues.

Frequently asked questions

What is Pension Credit in simple terms?

It is a means-tested benefit that tops up the weekly income of people over State Pension age to £238 (single) or £363.25 (couple) in 2026/27, with extra amounts for disability, caring and some housing costs.

Can I get Pension Credit if I own my home?

Yes. Owning your home does not stop you claiming. Savings and investments above £10,000 are counted as income at £1 a week for every £500, but there is no upper savings limit for Guarantee Credit.

Does Attendance Allowance affect Pension Credit?

It does not count as income, so it does not reduce Pension Credit. It can increase it, because you may get the severe disability addition of £86.05 a week, and it can unlock extra Housing Benefit or Council Tax Reduction.

How far back can Pension Credit be backdated?

Three months. If you were eligible during that time, up to three months of Pension Credit can be included in your first payment. You need information about your income and savings on the date you want to backdate to.

Does Pension Credit give a free TV licence?

It can. If you receive Pension Credit and are aged 75 or over, you are eligible to apply for a free TV licence. You must apply for it separately.

Where to get help next

Call the Pension Service on 0800 99 1234 to ask for a calculation. If you or a parent may move to a care home, use the funding checker, learn about Attendance Allowance, and see TV licences in care homes. You can also browse find care for local options.

Sources

• GOV.UK: Pension Credit
• GOV.UK: Pension Credit, what you’ll get
• GOV.UK: Pension Credit, eligibility
• GOV.UK: Benefit and pension rates 2026 to 2027
• GOV.UK: Carer’s Allowance, effect on other benefits

Reviewed by The Care Panel team on 9 November 2026. This guide is general information about care in England, not legal, medical or financial advice. Rules and rates change; check with your council or an adviser before making decisions.