Pensioner couples to get £865 extra per year from April | Personal Finance | Finance
State pensioners on a low income and living together can get up to £865 extra per year from the Department for Work and Pensions (DWP) from April.
Chancellor Rachel Reeves delivered her autumn Budget on Wednesday, setting out a series of tax and spending plans for the year ahead, including increases to several benefits payments. As well as State Pension rates, Pension Credit is also being increased by 4.8% from April, benefiting retirees on a low income. The benefit provides eligible pensioners an extra boost of cash to help with living costs and you can get it even if you have other income, savings or your own home, and it can be claimed either individually or as a couple.
For those who live together, the 4.8% increase from April means that pensioner couples can get up to £865 extra per year from the DWP.
Currently, Pension Credit tops up your joint weekly income to £346.60 if you have a partner, which amounts to a maximum of £18,023.20 per year.
But the joint rate is increasing to £363.25 per week from April 2026, which amounts to a maximum of £18,889 per year – a boost of up to £865.80 extra annually.
Of course, not all pensioners will be entitled to the full amount but the DWP says the benefit is currently worth around £4,300 per year on average, with couples getting an average of £115 per week.
The uprating to Pension Credit comes alongside increases to the new and basic State Pension rates, which are also both increasing by 4.8% from April.
Ms Reeves said in her speech: “I am increasing the basic and new State Pension by 4.8%, an increase of £440 per year for the basic State Pension and an increase of £575 per year for the new State Pension in line with our commitment to the triple lock.”
Pension Credit is paid separately to the State Pension and if you’re eligible to claim it, it also unlocks access to a wealth of extra financial support, including help with housing costs, Council Tax discounts, the Winter Fuel Payment, NHS treatment costs, and a free TV licence if you’re aged 75 or over.
Last month the DWP launched a new trial to boost Pension Credit take up among pensioners after new analysis showed large regional disparities, with uptake lowest in the South West.
Minister for Pensions Torsten Bell said: “We’re committed to supporting harder-up pensioners however we can. Pension Credit is a simple way to give those who need it the most some extra support with bills or a free TV licence.
“I’d urge anyone who thinks they, or anyone they know, might be able to claim Pension Credit, to take a few minutes out of their day to check and apply. This country’s pensioners deserve every penny they are entitled to.”
You must live in England, Scotland or Wales and have reached State Pension age – which is currently 66 for both men and women – to qualify for Pension Credit.
When you apply for the benefit your income is calculated and this includes your State Pension, other pensions, earnings from employment and self-employment and most social security benefits.
The DWP explains: “If you have £10,000 or less in savings and investments this will not affect your Pension Credit. If you have more than £10,000, every £500 over £10,000 counts as £1 income a week. For example, if you have £11,000 in savings, this counts as £2 income a week.”
You can use the DWP’s Pension Credit calculator to get an estimate of how much you could get and you can start your application up to four months before you reach State Pension age.
You can apply any time after you reach State Pension age but your application can only be backdated by three months, so you’ll get up to three months of Pension Credit in your first payment if you were eligible during that time.
