TL;DR
An estimated 770,000 UK pensioner households are entitled to Pension Credit but do not claim it, missing an average top-up of around £4,200 a year. Pension Credit also acts as a passport to free TV licences for those aged 75+, Cold Weather Payments, Warm Home Discount, Council Tax Reduction and Housing Benefit support. Eligibility is income-based, not National Insurance-based.
The full new State Pension stands at £230.25 a week for the 2026/27 tax year, which works out at around £11,973 a year. The basic State Pension stands at £176.45 a week, or £9,175 a year. Both figures are below the official poverty line for a single pensioner household, which is one of the reasons Pension Credit and a range of passported benefits exist.
The Department for Work and Pensions has consistently reported take-up rates for Pension Credit between 63% and 67% by caseload, meaning roughly a third of eligible pensioners do not claim. The Office for National Statistics has put the gap at around 770,000 households.
Pension Credit
Pension Credit tops up weekly income to a guaranteed minimum. For the 2026/27 tax year, the guaranteed minimum is:
- £227.10 a week for a single pensioner
- £346.60 a week for a couple where both have reached State Pension age
If weekly income from State Pension, private pensions, earnings and most savings income falls below those thresholds, Pension Credit makes up the difference. The first £10,000 of savings is ignored entirely; income from savings above that is assessed at £1 per £500.
Claims can be made by phone on the Pension Credit claim line, by post using a PC1 form, or online via gov.uk. A claim can be backdated up to three months.
What Pension Credit unlocks
Pension Credit acts as a gateway to several other forms of support, often more valuable in total than the Pension Credit itself:
- Free TV licence for households where someone aged 75 or over receives Pension Credit. The licence currently costs £174.50 a year.
- Cold Weather Payment: a £25 lump sum for each seven-day period of cold weather between November and March, paid automatically to eligible postcodes.
- Warm Home Discount: a one-off £150 credit applied to the electricity account between October and March.
- Council Tax Reduction: a discount of up to 100% on the council tax bill, depending on the local authority and individual circumstances.
- Housing Benefit support for pensioners not on Universal Credit.
- NHS dental treatment, eye tests and prescription costs fully covered.
Attendance Allowance
Attendance Allowance is a separate benefit paid to people over State Pension age who need help with personal care due to a physical or mental disability. It is paid at two rates for the 2026/27 tax year:
- Lower rate: £73.90 a week, for those needing frequent help during the day or night
- Higher rate: £110.40 a week, for those needing help during both the day and night, or who are terminally ill
Attendance Allowance is not means-tested. Savings, income and a partner's income do not affect entitlement. It is paid in addition to State Pension and Pension Credit.
Council Tax discounts beyond Pension Credit
Pensioners living alone are entitled to a 25% single person discount on council tax regardless of income. Severely Mentally Impaired status (which can apply to dementia diagnoses) makes the household exempt from council tax if all other adults qualify for a disregard, or applies an additional 25% discount if one other adult lives with the person.
Council Tax Reduction (sometimes called Council Tax Support) is a separate income-based scheme run by each local authority. Rules vary by council, but pensioner-age claimants are protected by national rules that prevent councils from reducing pensioner support below set minimums.
Key facts
- Pension Credit tops single pensioner income to £227.10/week, couple income to £346.60/week (2026/27).
- Around 770,000 eligible UK pensioner households do not claim Pension Credit.
- Pension Credit unlocks free TV licence (75+), Warm Home Discount, Cold Weather Payment, Council Tax Reduction.
- Attendance Allowance pays £73.90 or £110.40 a week and is not means-tested.
- Council tax single person discount of 25% applies to pensioners living alone regardless of income.
FAQ
Can someone with savings claim Pension Credit?
Yes. The first £10,000 of savings is ignored. For every £500 of savings above £10,000, weekly income for the Pension Credit calculation is increased by £1. There is no upper savings limit.
Does Pension Credit affect State Pension entitlement?
No. Pension Credit is paid on top of State Pension. State Pension is a National Insurance contributory benefit; Pension Credit is an income-related benefit. They are calculated and paid separately.
How far back can a Pension Credit claim be backdated?
A successful Pension Credit claim can be backdated by up to three months, provided the claimant met the eligibility criteria throughout that period.
Is the free TV licence automatic for over-75s?
No. Free TV licences for the over-75s are only available where someone in the household receives Pension Credit. The licence is no longer free for all over-75s; that policy ended in 2020.
