Pension Credit is a means-tested state benefit for people in Great Britain aged over State Pension age (currently 66). It tops up your weekly income to a guaranteed minimum. There are two parts: Guarantee Credit, which tops up your income to at least £218.15/week (single) or £332.95/week (couple) in 2024/25, and Savings Credit, available to those who reached State Pension age before 6 April 2016 and saved towards their retirement.

You may be eligible if you live in Great Britain (England, Scotland, or Wales), have reached State Pension age (currently 66), and your weekly income is below the standard minimum guarantee. Having savings or a private pension does not automatically disqualify you — the DWP assesses your full financial picture. If you’re in a couple, both of you usually need to have reached pension age, or one of you must be receiving Housing Benefit.

Guarantee Credit is calculated by taking the standard minimum guarantee (£218.15/week single, £332.95/week couple in 2024/25), adding any applicable additional amounts (carer, severe disability, children), then subtracting your total weekly income. If your income is below the adjusted guarantee, the shortfall is your Guarantee Credit. Savings above £10,000 are treated as generating £1/week per every £500 over the threshold and are added to your actual income before the comparison.

Savings up to £10,000 are completely ignored. For every £500 of savings above £10,000, £1 per week is added to your assumed income (this is called “tariff income”). For example, if you have £14,000 in savings, £4,000 is over the threshold, giving 8 × £1 = £8/week of assumed income added to your actual income. This assumed income is then used when working out whether you qualify and for how much.

Income that counts includes: State Pension, private and workplace pension income, earnings from employment or self-employment, most other benefits (such as Jobseeker’s Allowance or Carer’s Allowance), and tariff income from savings over £10,000. Income that does not count includes: Disability Living Allowance, Personal Independence Payment, Attendance Allowance, Housing Benefit, and a £5/week disregard on earnings for single people (£10 for couples, £20 if disabled).

You may qualify for additional amounts on top of the standard guarantee: a carer addition of £45.60/week if you care for someone for at least 35 hours per week; a severe disability addition of £81.50/week if one partner receives a qualifying disability benefit (or £163.00 if both partners do); and a child addition of £66.29 per child per week if you’re responsible for a dependent child. These additions raise the threshold your income is compared against, making it easier to qualify and increasing the amount received.

Receiving Pension Credit (even a small amount) can unlock a range of other means-tested benefits, including: Housing Benefit; Council Tax Reduction; a free TV licence if you’re aged 75 or over; Cold Weather Payments; the Warm Home Discount scheme; free NHS dental treatment; help with glasses and hospital travel costs; and a Christmas Bonus. The combined value of these additional entitlements can be significantly more than the Pension Credit itself, which is why it’s important to claim even if you think you’ll only get a small amount.

You can claim Pension Credit by calling the Pension Credit claim line on 0800 99 1234 (Monday to Friday, 8am to 6pm), by post using a form downloaded from GOV.UK, or online via the GOV.UK digital claim service if you’ve reached State Pension age and don’t receive other benefits. Claims can be backdated by up to 3 months if you were eligible during that period. Citizens Advice or Age UK can help you apply if needed.

This calculator uses official 2024/25 DWP rates and the standard Pension Credit formula to provide a reasonable estimate. However, it is a simplified tool and cannot account for every individual circumstance — such as housing costs, complex income arrangements, capital disregards, or transitional protection. Your actual entitlement should be confirmed by claiming through the official DWP Pension Credit claim line or by using the government’s official eligibility checker at GOV.UK. Always treat this as an indicative figure, not a formal benefit decision.