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Part of:
Best Pensions and Retirement UK 2026
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| Pension Credit 2026 — Key Figures | |
|---|---|
| Guarantee Credit threshold (single) | £218.15 per week (2026/27) |
| Guarantee Credit threshold (couple) | £332.95 per week (2026/27) |
| Savings Credit (max single) | £17.01 per week (2026/27) |
| Savings Credit (max couple) | £19.04 per week (2026/27) |
| Eligible age | State Pension age (currently 66) |
| Unclaimed | Estimated 850,000 eligible households not claiming (DWP 2024) |
Pension Credit is means-tested state support that tops up your income in retirement. Despite being worth on average £3,900 per year (DWP figures), it is one of the least claimed benefits available. Claiming Pension Credit also passports you to a range of other support that has significant cash value.
The Two Components
Guarantee Credit
Guarantee Credit tops up your weekly income to the standard minimum guarantee: £218.15/week for a single person or £332.95/week for a couple in 2026/27. If your income (including state pension, private pension, earnings and deemed income from capital) is below these thresholds, DWP pays the difference. The threshold rises with the triple lock annually.
Savings Credit
Savings Credit is only available if you (or your partner) reached state pension age before 6 April 2016. It is a small additional amount for people who made modest savings or private pension provision. The maximum is £17.01/week (single) or £19.04/week (couple). It is calculated as 60p for every £1 of income above the Savings Credit starting point (£189.80 single, £301.22 couple in 2026/27). (Source: DWP Pension Credit technical guidance)
Tariff Income from Capital
Capital (savings, investments) above £10,000 is treated as generating a notional 'tariff income' of £1/week for every £500 (or part £500) above £10,000. This is added to your actual income when calculating entitlement. Example: savings of £15,500 means £5,500 above the threshold = 11 × £500 = tariff income of £11/week. Capital below £10,000 is ignored. There is no upper capital limit for Pension Credit (unlike some other means-tested benefits). (Source: Pension Credit Regulations 2002)
| Savings | Tariff income added to weekly income |
|---|---|
| Under £10,000 | £0 |
| £12,000 | £4/week (£2,000 above threshold = 4 × £0.50 = £2... wait: 4 × £1 = £4) |
| £15,000 | £10/week |
| £20,000 | £20/week |
| £30,000 | £40/week |
Passported Benefits — The Real Value of Claiming
Claiming Pension Credit (even a small amount of Guarantee Credit) passports you to several other entitlements with significant annual value:
| Benefit | Annual value (approx) | Notes |
|---|---|---|
| Free TV licence (over-75) | £174.50/yr | Only if you or your partner are 75+ |
| Cold Weather Payment | £25/week | Triggered by temperatures below 0°C for 7 consecutive days |
| Housing Benefit | Up to full rent | If you rent; claim separately via local council |
| Council Tax Reduction | Up to 100% of council tax | Varies by local authority |
| NHS dental treatment | Free | Automatic via HC2/HC3 certificate |
| NHS sight tests and glasses | Free/reduced | Via NHS vouchers |
| Warm Home Discount | £150/winter | Check scheme eligibility each year |
| 💡 Tip: Even £1 of Pension Credit Guarantee Credit passports you to most of these benefits. If your income is very close to the threshold, it is worth applying — the passported support alone can be worth £500–£1,000 per year. |
How to Claim
Claim by phone: Pension Credit claim line 0800 99 1234 (free, 8am–6pm Mon–Fri). You can also claim online at gov.uk/pension-credit/how-to-claim or by post (ask DWP to send a claim form). You will need: your National Insurance number; bank account details; information about your income, savings and investments; and your housing costs if you pay rent. You can backdate a claim for up to 3 months. (Source: gov.uk/pension-credit)
Carer Premium
If you provide at least 35 hours per week of unpaid care for a severely disabled person you may be entitled to Carer's Allowance (£81.90/week in 2026/27) and an additional Carer Addition within Pension Credit of £45.60/week. You do not need to receive Carer's Allowance to receive the Carer Addition in Pension Credit, but you must meet the eligibility conditions. (Source: DWP — Carer's Allowance and Pension Credit)
| Disclaimer: This article is for information only and does not constitute financial, legal or tax advice. Figures are correct at date of publication but may change. Always check primary sources (gov.uk, FCA register) and consult a qualified adviser for guidance tailored to your situation. |
Frequently Asked Questions
Does owning my home affect Pension Credit?
No. Owner-occupiers can claim Pension Credit. The value of your home is not treated as capital for Pension Credit purposes. However, if you own a second property (other than your main home) its value does count as capital.
Does Pension Credit affect my State Pension?
No. Pension Credit is paid in addition to your State Pension. It tops up your total income to the minimum guarantee level.
My partner is under State Pension age — can I still claim?
Yes, but only if you are over State Pension age. A mixed-age couple (one partner over, one under pension age) has been assessed under Universal Credit rules since May 2019 for new claims — you cannot claim Pension Credit until both partners reach State Pension age unless you were already receiving it before May 2019.
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