TL;DR
Pension Credit tops up the weekly income of people over State Pension age who are on a low income. For 2026/27, Guarantee Credit lifts income to at least £238.00 a week for a single person and £363.25 for a couple. There is no upper savings limit, and the first £10,000 of savings is ignored. Even a small award unlocks other help such as Council Tax support, the Warm Home Discount and the Winter Fuel Payment. Hundreds of thousands of eligible pensioners do not claim it.
Last reviewed 30 June 2026
What Pension Credit is
Pension Credit is a means-tested, tax-free benefit that tops up the income of people over State Pension age who are on a low income. It sits alongside the State Pension rather than replacing it, and is administered by the Pension Service. It is often described as the safety net for pensioners, and an award also opens the door to a range of other help.
The two parts: Guarantee Credit and Savings Credit
Pension Credit has two parts. Guarantee Credit is the main element and tops your weekly income up to a minimum level. Savings Credit is a smaller extra amount for people who reached State Pension age before 6 April 2016 and made some provision for retirement; it is worth up to around £17.96 a week for a single person and £20.10 for a couple. People who reached State Pension age on or after that date cannot get Savings Credit.
The 2026/27 thresholds
For 2026/27, Guarantee Credit tops your income up to £238.00 a week if you are single and £363.25 a week if you are a couple. If your weekly income is below these figures, Pension Credit generally pays the difference. Because the calculation is more generous than many expect, it is worth applying even if your income is a little above the threshold, particularly if you have a disability, are a carer, or have housing costs.
How savings are treated
Unlike most means-tested benefits, Pension Credit has no upper savings limit. The first £10,000 of savings and investments is ignored completely. Above that, every £500 or part of £500 is treated as giving you £1 a week of assumed income, which is added to your other income for the calculation. This means people with significant savings can still qualify, just with a reduced award.
Extra amounts that can increase your award
Your Pension Credit can be higher than the basic figures if certain circumstances apply. There is a severe disability addition of £86.05 a week for people who receive a qualifying disability benefit such as Attendance Allowance, a carer addition of £48.15 a week, and additional amounts for some housing costs and for children you are responsible for. These additions raise the income level you are topped up to, so more people qualify than the headline thresholds suggest.
Gateway benefits
One of the most valuable features of Pension Credit is that even a small award acts as a passport to other help. Getting Pension Credit can unlock Council Tax support, the Warm Home Discount, the Winter Fuel Payment, Cold Weather Payments, help with NHS costs, and a free TV licence for those aged 75 and over. For many households these gateway benefits are worth more than the Pension Credit itself.
Mixed-age couples
There is an important rule for couples where one partner is over State Pension age and the other is below it. These mixed-age couples generally cannot make a new claim for Pension Credit and must claim Universal Credit instead until both partners reach State Pension age. If this applies to you, it is worth getting advice, because the two systems can produce very different outcomes.
How to claim and why so many miss out
You can claim Pension Credit online, by phone through the Pension Service, or by post, and a claim can be backdated by up to three months. Hundreds of thousands of eligible pensioners do not claim, often because they assume savings rule them out, or that it is only for the very poorest. Given the gateway benefits, it is worth checking entitlement even where the top-up itself would be small.
Related guides
Disclaimer: This article is general information and not financial or welfare advice. Rates and rules are set by the DWP and can change each April. For a personal estimate, use the GOV.UK Pension Credit calculator or a free adviser such as Citizens Advice or Age UK. Figures are from the GOV.UK sources below.
Frequently asked questions
How much is Pension Credit in 2026/27?
Guarantee Credit tops your weekly income up to £238.00 if you are single and £363.25 if you are a couple. Savings Credit can add a smaller amount for those who reached State Pension age before 6 April 2016.
Does Pension Credit have a savings limit?
No. There is no upper savings limit. The first £10,000 is ignored, and above that £500 of savings is treated as £1 a week of income.
Can I get Pension Credit if I have a disability or am a carer?
Yes, and you may get more. There is a severe disability addition of £86.05 a week and a carer addition of £48.15 a week, which raise the income level you are topped up to.
What other help does Pension Credit unlock?
An award can passport you to Council Tax support, the Warm Home Discount, the Winter Fuel Payment, Cold Weather Payments, NHS cost help, and a free TV licence for those aged 75 and over.
Can a mixed-age couple claim Pension Credit?
Generally no. If one partner is below State Pension age, you usually have to claim Universal Credit instead until both of you reach State Pension age.
Can I backdate a Pension Credit claim?
Yes, by up to three months, provided you were eligible throughout that period.
DWP Pension Credit case review 2026: what it means for you
What the Pension Credit case review campaign is
The DWP has launched a Pension Credit case review campaign, announced at the 2025 Budget, to check that selected claims are correct. The exercise aims to save about £370 million from the benefits bill by April 2031. It involves contacting selected claimants and, in some cases, asking for bank statements to verify their circumstances.
The review is a targeted administrative exercise rather than a change to the rules of Pension Credit. Its stated purpose is to reduce incorrect payments, following figures showing that 33% of Pension Credit claims were overpaid in 2025-26, up from 28% the previous year. The DWP has said that being selected for a review does not mean a claimant has done anything wrong.
The campaign is part of a wider government drive to reduce fraud and error across the benefits system. The £370 million saving target is set against the total cost of Pension Credit, which is a means-tested benefit for people over state pension age on a low income.
Who is being contacted and why
The DWP is writing to selected Pension Credit claimants as part of the case review. Some will be asked to provide recent bank statements and details of their income, savings and living arrangements. The rise in reviews follows overpayments reaching 33% of claims in 2025-26, driven by under-declared assets and time spent abroad.
An estimated 95,000 to 100,000 claimants could see their payments reduced as a result of the review, although the number of people contacted will be far higher. The DWP has not published a full list of criteria for selection, but the review is understood to focus on claims where circumstances may have changed or where information on file appears incomplete.
Common reasons for overpayment include not reporting a change in savings, receiving an inheritance, or spending more than six months a year outside the UK. Claimants who are contacted should check the letter carefully to see what information is being requested and by what date.
What to do if you are contacted
If the DWP writes to you, respond by the deadline and provide the information asked for. Keep copies of everything you send. Being selected for a review is a check, not an accusation, and does not mean you have done anything wrong.
You should gather the documents requested, which may include bank statements covering a set period, details of any other income, and information about your savings and investments. If you need more time, contact the DWP using the number on the letter before the deadline to explain.
If you are unsure what is being asked, you can get free help from Citizens Advice or Age UK. Do not ignore the letter, as failing to respond could lead to your claim being suspended or reassessed without your input. Keep a record of any phone calls, including the date, time and the name of the person you spoke to.
How to make sure you are getting the right amount
Report changes in your income, savings or living arrangements promptly. Use the free Pension Credit calculator on GOV.UK to check your entitlement, and contact Citizens Advice or Age UK if you need help with a benefits check.
Changes that can affect your Pension Credit include:
- Income going up or down, including from work, pensions or investments
- Savings and capital rising above £10,000
- Moving in with someone, or a partner moving in or out
- Going into hospital or a care home for more than a set period
- Spending more than four weeks a year outside the UK
If your circumstances change, tell the DWP as soon as possible. Your payment may go up or down to match your entitlement. Deliberate non-disclosure can lead to recovery of overpayments, and in serious cases to further action.
What Pension Credit unlocks
Pension Credit is a passport benefit, meaning it can unlock other help. This includes the Winter Fuel Payment, Warm Home Discount, council tax reduction, help with housing costs and a free TV licence for the over-75s.
Even a small Pension Credit award can give access to these additional benefits, which are often worth more than the Pension Credit itself. For example, the Winter Fuel Payment is paid automatically to those receiving Pension Credit, and the Warm Home Discount is applied to electricity bills for eligible households.
Council tax reduction is set by local councils, but Pension Credit claimants are usually entitled to some help. Housing costs, such as rent or service charges, can also be covered in certain circumstances. A free TV licence is available to anyone aged 75 or over who receives Pension Credit.
If you are not currently claiming Pension Credit but think you might be eligible, use the GOV.UK calculator or contact Citizens Advice for a benefits check. Claims can be backdated by up to three months, so it is worth applying even if you are unsure.
DWP Pension Credit case review 2026: what it means for you
The DWP has launched a Pension Credit case review campaign, contacting selected claimants and asking some for bank statements, in a drive to cut £370 million from the benefits bill by 2031. An estimated 95,000 to 100,000 claimants could see payments reduced. Being selected for review does not mean you have done anything wrong.
The review is ongoing and will run until at least April 2031. If you are contacted, respond promptly and provide the information requested. If you are not contacted, there is no action needed, but you should still report any changes in your circumstances to the DWP.
For most claimants, the review will be a straightforward check of their current situation. The DWP has said that the aim is to ensure that payments are correct, not to penalise people who have made an honest mistake. If you are worried about a letter you have received, speak to Citizens Advice or Age UK for free, independent guidance.
Why is the DWP reviewing Pension Credit claims?
To check selected claims are correct and cut about £370 million from the benefits bill by 2031, after overpayments rose to 33% of claims in 2025-26.
Does being selected for a review mean I have done something wrong?
No. The DWP has stressed that being selected is a routine check to confirm your circumstances, not an accusation.
What information might I be asked for?
Selected claimants may be asked for recent bank statements and details of income, savings and living arrangements.
What happens if my circumstances have changed?
Report changes promptly. Your payment may go up or down to match your entitlement; deliberate non-disclosure can lead to recovery of overpayments.
How do I check I am getting the right Pension Credit?
Use the free Pension Credit calculator on GOV.UK, or contact Citizens Advice or Age UK for a benefits check.
- The DWP has begun contacting selected Pension Credit claimants as part of a case review campaign announced at the 2025 Budget.
- The drive aims to cut about £370 million from the benefits bill by April 2031.
- An estimated 95,000 to 100,000 claimants could see payments reduced; the number reviewed will be far higher.
- Some claimants will be asked for bank statements to verify their circumstances; being selected does not imply wrongdoing.
- The review follows figures showing 33% of Pension Credit claims were overpaid in 2025-26, up from 28%.
- Pension Credit is a passport benefit - it can unlock Winter Fuel Payment, Warm Home Discount, council tax help and a free TV licence.
