An estimated 880,000 pensioner households are entitled to Pension Credit but not claiming it — leaving £2.5 billion unclaimed every year. Here's the complete guide to rates, eligibility and the significant additional benefits it unlocks. Updated April 2026

Pension Credit Rates 2026/27

Source: Mega Software April 2026 payment dates; housingsystems.co.uk benefit rates 2026/27; govexplained.co.uk. Guarantee Credit rates ensure a minimum income floor. The Severe Disability Premium is additional if you or your partner receive Attendance Allowance or PIP Daily Living component and live alone (or only with another disabled person).

How Pension Credit Is Calculated — Example

Example: A single pensioner receives the new State Pension of £241.30/week. Their total weekly income exceeds the Guarantee Credit threshold of £218.15 — so they do not receive basic Guarantee Credit. However: if they also have Attendance Allowance, the Severe Disability Premium (£86.05/week) may be added to the threshold, increasing it to £304.20/week — now their State Pension of £241.30 is below this higher threshold, and they qualify for Pension Credit after all. This is why it is important to check rather than assume you are over the limit.

What Pension Credit Unlocks — The Additional Benefits

How to Apply for Pension Credit

Apply by phone: 0800 99 1234 (Monday-Friday, 8am-6pm). You can also apply online at gov.uk/pension-credit/how-to-claim or by post. You will need: your National Insurance number; information about your income and savings; bank account details; details of any disability benefits you receive; information about housing costs. Pension Credit can be backdated for up to 3 months — always claim as soon as you think you might be eligible and ask for backdating.

The Savings and Income Rules

Many pensioners mistakenly believe that having savings disqualifies them from Pension Credit. This is not true. Savings under £10,000 are completely ignored. Savings between £10,000 and £16,000 are assessed at £1/week of notional income per £500 of savings above £10,000. Savings above £16,000 may affect the Savings Credit element but not necessarily the Guarantee Credit. Similarly, a small private pension does not necessarily disqualify you — it is counted as income but may still leave you below the threshold.

This article is for informational purposes only. Benefit rules are complex and change frequently. Always check gov.uk, Citizens Advice or Turn2us for your personal entitlement. All rates verified from GOV.UK, HMRC and House of Commons Library, April 2026.