The Department for Work and Pensions (DWP) has announced a major update to its Pension Credit scheme, speeding up payments and making it easier for eligible pensioners to receive a potential annual boost of up to £3,900. The move is part of a national campaign to encourage more low-income pensioners to claim the benefit they’re entitled to and to do it quickly.
An estimated 880,000 eligible households across the UK are still not claiming Pension Credit, missing out not only on monthly income top-ups but also access to other financial support such as free TV licences, council tax reductions, and Winter Fuel Payments.
What Is Pension Credit?
Pension Credit is a means-tested benefit for people over the State Pension age (currently 66), designed to help with living costs. It’s different from the State Pension itself and is intended to top up low incomes to a guaranteed minimum level.
As of April 2025, those eligible may see their income topped up to:
- £218.15 per week for single pensioners
- £332.95 per week for couples
Additional amounts may be available for those with a disability, caring responsibilities, or certain housing costs.
The DWP has also made it clear that claiming Pension Credit opens the door to other benefits, including:
- Free TV licences for over-75s
- Cold Weather Payments
- Council Tax Reduction
- Help with NHS costs
- Winter Fuel Payment worth up to £600
Why the Urgency?
Under the new update, the DWP is working to accelerate the application process, with claims now averaging just 16 minutes to complete. This improvement means eligible pensioners can begin receiving their entitlement — which can total over £3,900 per year more quickly than before.
The government is urging pensioners to apply as soon as possible, especially if they want to qualify for linked benefits like the Winter Fuel Payment and Cost of Living boosts, which come with set deadlines.
Missing the deadline could mean missing out on hundreds of pounds in extra support, which is why awareness campaigns are currently being rolled out by the DWP and charitable partners.
Am I Eligible?
To qualify for Pension Credit, you must:
- Be over 66 years old (State Pension age)
- Live in the UK
- Have a weekly income below:
- £218.15 if single
- £332.95 if in a couple
Even if your income is higher, you may still qualify if you have:
- A disability
- Caring responsibilities
- Certain housing costs (like service charges or ground rent)
You can also still be eligible if you have savings — there is no upper savings limit, although savings over £10,000 may affect the amount you receive.
You can use the official Pension Credit calculator to quickly check if you’re eligible.
How to Claim Pension Credit
There are three main ways to apply for Pension Credit:
- Online: Visit the official Pension Credit application page and complete the form.
- By Phone: Call the Pension Credit claim line on 0800 99 1234, Monday to Friday, 8am to 6pm.
- By Post: Request a paper application form via the claim line.
When applying, you’ll need:
- National Insurance number
- Bank account details
- Information about your income, savings, and investments
- Details about housing costs and any benefits you receive
Claims can be backdated for up to three months, so long as you were eligible during that period.
More detailed instructions can be found at the How to Claim Pension Credit guide.
Help Is Available
If you’re unsure how to apply or whether you qualify, several trusted organisations can help:
- Citizens Advice – Offers step-by-step guidance on eligibility and claims
- Age UK – Provides advice tailored to older people
- Independent Age – Delivers free and impartial help for older adults
These organisations can help ensure your application is accurate, reducing the risk of delays.
Don’t Miss Out
The DWP’s updated process is intended to reduce financial hardship among pensioners and close the gap for those not currently claiming. Given the high cost of living and increased energy bills, every pound counts — and Pension Credit could be the difference between struggling and stability.
If you or someone you know may be eligible, act quickly. The sooner you apply, the sooner you can access this vital support — including any seasonal payments you might otherwise miss.
Final Thoughts
The DWP’s recent update to Pension Credit is a timely reminder that help is available but it’s up to individuals to take that crucial first step. With thousands of pensioners missing out on nearly £4,000 a year, spreading awareness is vital. The improved application process, now quicker and more accessible than ever, removes many of the traditional barriers to claiming.
If you’re over State Pension age or know someone who is, it’s worth checking eligibility today. A short phone call or a quick online application could unlock financial support that makes a real difference. Don’t leave money on the table claim what you’re entitled to.
