Older people living alone and struggling with a low income could be eligible for a Pension Credit boost of up to £4,200 in the coming months, offering much-needed financial relief at a time when living costs remain high. This support, specifically designed for low-income pensioners, is one of the most underclaimed benefits in the UK.
According to Devon Live, many older people may be unaware of their entitlement, missing out on extra payments that could significantly improve their financial situation.
The Department for Work and Pensions (DWP) has recently confirmed that most new claims are processed within 50 working days, meaning those who apply now could receive their first payment before Easter Sunday on 20 April, along with any backdated amounts they may be owed.
Pension Credit and why it matters
Pension Credit is a means-tested benefit designed to help older people on low incomes by topping up their weekly payments. It also provides access to additional financial assistance, including help with heating bills, housing costs, and Council Tax.
Despite this, many eligible pensioners do not claim it, often assuming they are ineligible due to savings or home ownership. With recent changes to eligibility rules for the Winter Fuel Payment, only pensioners claiming certain benefits—including Pension Credit—received the 2024/25 payment.
Those who apply successfully before September 2024 will qualify for the 2025/26 Winter Fuel Payment, including the higher rate of the Pension Age Winter Heating Payment in Scotland.
Understanding the two types of Pension Credit
There are two types of Pension Credit: Guarantee Credit and Savings Credit.
- Guarantee Credit is available to people of State Pension age (currently 66) whose weekly income is below:
- £218.15 for a single person
- £332.95 for a couple
- Higher thresholds apply for those with disabilities, carers, or housing costs.
- Savings Credit is available only to people who reached State Pension age before 6 April 2016 and have qualifying income above:
- £189.80 per week (single person)
- £301.22 per week (couple)
Claiming the right type of Pension Credit can make a significant difference in financial stability, ensuring older people receive the support they need to cover essential living costs.
How Much Could You Receive?
A successful Pension Credit claim can provide a substantial boost to income, helping older people on low earnings better manage essential living costs and access additional financial support. This extra income can make a real difference, particularly for those facing higher household expenses, such as heating bills, rent, or mortgage payments.
- Guarantee Credit tops up weekly income to:
- £218.15 for a single person
- £332.95 for a couple
- Savings Credit can provide up to:
- £17.01 per week (single person)
- £19.04 per week (couple)
The total amount received depends on income, savings, and capital over £10,000.
Why Claiming Pension Credit Is More Important Than Ever
Taking the time to check eligibility and apply could make a significant difference, ensuring older people receive the financial support they are entitled to and helping them manage rising living costs more comfortably.
For many older people, Pension Credit is a vital financial lifeline, particularly as living costs remain high. Even an award of just £1 per week can unlock additional support, including free NHS prescriptions, Cold Weather Payments, and council tax reductions.
Given the significant number of older people living alone—3.3 million in England and Wales, including 337,000 single pensioner households in Scotland—ensuring all eligible pensioners claim their full entitlement could provide much-needed financial security.
With applications currently being processed within 50 working days, those eligible should act soon to maximise their benefits before next winter.
