State pensioners could boost payments by £4.3k a year with underclaimed benefit | Personal Finance | Finance
State pensioners could boost their income by an average of £4,300 a year by claiming an underused benefit from the Department for Work and Pensions (DWP). Pension Credit is designed to top up the income of older people on a low income. However, government guidance estimates that up to 910,000 pensioner households may be entitled to the support but are not currently claiming it.
To qualify, you must have reached State Pension age and live in England, Scotland or Wales. The current State Pension age is 66. Pension Credit works by topping up your weekly income to a minimum level known as the Standard Minimum Guarantee. In the 2025/26 financial year, it topped up income to £227.10 per week for single pensioners and £346.60 for couples.
From April 6 this year, those amounts increased by 4.8%. The new thresholds are £238 per week for a single person and £363.25 per week for couples.
When you apply, the DWP looks at your total weekly income. This includes your State Pension, any private or workplace pensions, earnings and most other benefits such as Carer’s Allowance. For couples, income is assessed jointly.
If your income falls below the relevant threshold, Pension Credit makes up the difference.
People may still qualify even if their income is slightly above these figures. The Guarantee Credit element can take into account factors such as disability, caring responsibilities, savings and certain housing costs.
The Government says Pension Credit is worth an average of £4,300 a year. It is also often described as a “gateway benefit” because it can unlock further financial support.
Those receiving Pension Credit may qualify for a free TV licence if they are aged 75 or over. They may also get help with Council Tax, including reductions or, in some cases, no bill at all unless other adults live in the property.
The benefit can also help with housing costs. Renters may have their rent covered through Housing Benefit.
Homeowners may be able to get support with mortgage interest, ground rent and service charges.
Claimants can also get help with health-related costs. According to Age UK, this can include free NHS dental treatment, support with the cost of glasses and help with transport to hospital.
Extra amounts may be added depending on personal circumstances. A Carer Addition can be worth up to £48.15 per week for those caring for someone. A Severe Disability Addition can be worth up to £86.05 per week.
Receiving Pension Credit can also make someone eligible for Cold Weather Payments during particularly cold spells and for the Winter Fuel Payment if they have reached State Pension age.
The Winter Fuel Payment may be clawed back if annual income is above a certain level.
Some benefits are not counted as income when applying. These include Attendance Allowance, Personal Independence Payment, Disability Living Allowance, Housing Benefit, Council Tax Reduction, the Christmas Bonus and Winter Fuel Payments.
Many pensioners miss out because they believe owning their home or having some savings automatically disqualifies them. However, that is not always the case.
Anyone unsure about their eligibility can use the Government’s online calculator or contact the Pension Credit claim line to check if they qualify.
More information can also be found here.
