In 2025, nearly one in three eligible pensioners in the UK is still missing out on Pension Credit—an income top-up aimed at helping the lowest-income retirees. As the cost of living continues to put pressure on household budgets, understanding Pension Credit is more crucial than ever.

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What is Pension Credit?

Pension Credit is a means-tested benefit provided by the UK government to supplement the income of retired individuals and couples. It’s designed to ensure older people receive a minimum income level to support basic living expenses.

There are two main parts to Pension Credit:

• Guarantee Credit – tops up your weekly income if it’s below £218.15 (single) or £332.95 (couple).
• Savings Credit – for people who saved some money towards retirement. This is only available to those who reached State Pension age before April 6, 2016.

Who qualifies for Pension Credit?

To qualify, you must:

• Live in the UK
• Have reached State Pension age (currently 66, rising to 67 by 2028)
• Have a weekly income below the minimum guarantee levels

Some pensioners may also be eligible for additional amounts if they:

• Have a severe disability
• Are caring for another adult
• Have housing costs such as ground rent or service charges

How much can you get?

In 2025, the average top-up for eligible single pensioners is £72 per week, while couples may receive up to £115. These amounts vary based on other income sources and circumstances.

“Pension Credit can be a gateway to other vital benefits such as free TV licences, housing benefit, and help with NHS costs,” notes Age UK spokesperson Mary Caldwell.

How to apply

Applying for Pension Credit is straightforward and can be done in several ways:

• Online via the official gov.uk website
• By phone: Call the Pension Credit claim line at 0800 99 1234
• By post: Request a paper application from the DWP

You’ll need your National Insurance number, details of income, savings, and housing costs.

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Common reasons for missing out

Many pensioners assume they aren’t eligible due to owning a home or having modest savings. However, nearly half of those eligible have less than £10,000 in savings—and home ownership does not automatically disqualify you.

Case study: “It changed everything”

Sylvia, 74, from Lancashire, had no idea she qualified until a neighbour helped her apply. “I was skipping meals sometimes to save money,” she says. “Now I can heat my home and buy groceries without fear. I also got a free TV licence!”

Final thoughts

With rising costs and stagnant pensions, every pound matters. Pension Credit remains one of the most underclaimed benefits in the UK. If you or someone you know is of State Pension age, it's worth checking eligibility. Help is out there—you just need to ask.