If you’re eligible for Pension Credit you could receive over £3,900 a year in extra support
16:30, 01 Aug 2025Updated 18:04, 03 Aug 2025
Over a million pensioners in the UK claim Pension Credit(Image: PA)
Over a million pensioners in the UK claim Pension Credit. The benefit gives you extra money to help with your living costs if you’re over State Pension age and on a low income. Pension Credit can also help with housing costs such as ground rent or service charges.
You might get extra help if you’re a carer, severely disabled, or responsible for a child or young person. Pension Credit is separate from your State Pension. You can get Pension Credit even if you have other income, savings or own your own home.
If you’re eligible, you could receive over £3,900 a year in extra support, the Department for Work and Pensions (DWP) believes up to £2.1bn in Pension Credit is left unclaimed every year.
Pension Credit is a top-up to the State Pension for those on the lowest incomes. It’s separate from the amount you receive in your State Pension. To claim Pension Credit, you’ll need to reached State Pension age.
Pension Credit isn’t automatically added to your State Pension, so you’ll need to apply over the phone, by post or on the DWP website.
The current State Pension age in the UK is 66 for both men and women. However, this age is gradually increasing, with plans to raise it to 67 between 2026 and 2028 and to 68 between 2044 and 2046. We have rounded up some of the extra support people on Pension Credit can get:
Housing Benefit if you rent the property you live in
Housing Benefit can help you pay your rent if you’re unemployed, on a low income or claiming benefits. It’s being replaced by Universal Credit.
You can only make a new claim for Housing Benefit if either you have reached State Pension age or you are living in supported, sheltered or temporary housing.
You may get help with all or part of your rent. There’s no set amount of Housing Benefit and what you get will depend on whether you rent privately or from a council.
Your Housing Benefit could be reduced if you live in council or social housing and have a spare bedroom. If you rent privately, your eligible rent amount is either your Local Housing Allowance (LHA) rate or your actual rent, whichever is lower.
You’ll need to provide some information and evidence to support your claim for Housing Benefit. Housing Benefit is being replaced by Universal Credit. Most people will need to claim Universal Credit instead.
Winter fuel payment
Everyone over the State Pension age in England and Wales with an income of, or below, £35,000 a year will now benefit from a Winter Fuel Payment this winter.
Pensioners do not need to take action as they will automatically receive the payment this winter, for those who have incomes above the threshold it will be recovered by HMRC. No one will need to register with HMRC for this or take any further action.
The amount people receive from the Winter Fuel Payment is £200 per household, or £300 per household where there is someone over 80. For winter 2025/26, the qualifying week will be September 15 to 21 2025. A person needs to have reached State Pension age by the end of the qualifying week to be eligible.
Support for mortgage interest if you own the property you live in
You may be able to get help towards interest payments on the mortgage for the home you live in and loans you’ve taken out for certain repairs and improvements to your home.
It’s paid as a loan, which you’ll need to repay with interest when you sell or transfer ownership of your home. You may be able to transfer the loan if you’re buying a new home. You could speak to your mortgage lender before you apply for SMI.
Council Tax discount
You could be eligible for Council Tax discount if you’re on a low income or claim benefits. Your bill could be reduced by up to 100%. You can apply if you own your home, rent, are unemployed or working. You should check with your council if you’re eligible for a discount which will reduce the Council Tax you pay.
If the pension-age Council Tax Reduction (CTR) rules apply to you, the way the local council works out your CTR will depend on if you or your partner gets Pension Credit. If you’re part of a couple and only one of you has reached State Pension age, the person who has reached State Pension age should apply for CTR if you want your application to be assessed under the pension-age rules.
A free TV licence if you are aged 75 or over
The cost of a TV licence is due to increase in line with inflation each year until 2027, following an agreement made in 2022. You need a TV Licence to watch or record programmes on a TV, computer or other device as they’re broadcast, and to watch on-demand BBC programmes on iPlayer.
You can get a free TV licence if you’re 75 or older and you either:
get Pension Creditlive with your partner who gets Pension Credit
The licence covers everyone living at your address.
Warm Home Discount Scheme and other help
The Warm Home Discount Scheme is a one-off £150 discount off your electricity bill. If you’re eligible, your electricity supplier will apply the discount to your bill. The money is not paid to you.
There are different ways to qualify for the Warm Home Discount Scheme depending on where you live. You qualify if you either:
get the Guarantee Credit element of Pension Creditare on a low income and have high energy costs
If you are eligible, your electricity supplier will apply the discount to your bill. If you do not get the Guarantee Credit element of Pension Credit, you may still be eligible if you’re on low income.
People on State Pension age can also get help with NHS dental treatment, glasses and transport costs for hospital appointment. If you get a certain type of Pension Credit you may get a discount on the Royal Mail redirection service if you’re moving house.