What does Pension Credit pay and how is it calculated?

Pension Credit is a means-tested benefit that tops up your weekly income if you're over State Pension age and your money coming in falls below a set level. In 2026/27, that level is £218.15 a week for a single person and £332.95 a week for a couple. If your income is below those figures, the DWP makes up the difference. It really is that direct. The complication comes when you factor in savings, disability top-ups and the older Savings Credit element, so let me take those one at a time.

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What are the two parts of Pension Credit?

Most people only need to think about Guarantee Credit. It's the main element, and it applies to virtually everyone over State Pension age whose income is below the minimum threshold.

Savings Credit is something different, and it's increasingly rare. It was introduced to reward people who had saved modestly for retirement, on top of a basic State Pension, rather than relying entirely on the state. You can only qualify for Savings Credit if you (or your partner) reached State Pension age before 6 April 2016. Anyone who hit State Pension age after that date is subject to the new State Pension rules and is not eligible. If you're reading this in 2026 and you're 66, you won't qualify. If you're 76 and reached pension age in 2015, you might.

The two elements can, in principle, be paid at the same time, though in practice Savings Credit often tops up Guarantee Credit by a small weekly amount rather than standing alone.

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How much is Guarantee Credit in 2026/27?

The standard figures from April 2026 are:

• Single person: £218.15 per week
• Couple: £332.95 per week

These are the "appropriate minimum guarantee" figures set by the DWP each April, usually uprated by inflation or earnings growth under the triple lock rules (though Pension Credit uprating follows a slightly different track to the State Pension itself).

If your income is, say, £175 a week as a single person, you'd receive £43.15 a week in Guarantee Credit to bring you up to £218.15. If your income already exceeds £218.15, you won't get Guarantee Credit, though you might still qualify for Savings Credit if you reached pension age before April 2016.

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How much is Savings Credit in 2026/27?

The maximum Savings Credit is:

• Single person: £17.01 per week
• Couple: £19.04 per week

In practice, most people receive less than the maximum. The calculation is genuinely fiddly, and I'd recommend using the GOV.UK Pension Credit calculator rather than trying to work it out manually. The calculator handles both elements and accounts for your specific income and savings position.

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What additions can be added on top?

The standard Guarantee Credit rate isn't the ceiling. Several additions can be layered on, and these are worth knowing about because they're not always flagged clearly during a claim.

Severe Disability Addition If you receive the daily living component of Personal Independence Payment, Attendance Allowance, or Disability Living Allowance care component at the middle or highest rate, and nobody receives Carer's Allowance for looking after you, you can get an additional £81.50 a week (single person rate, 2026/27).

Carer Addition If you're entitled to Carer's Allowance, an extra £45.60 a week is added. You don't have to actually be receiving Carer's Allowance, only to meet the underlying entitlement conditions. This catches people out: many carers don't realise they're notionally entitled to Carer's Allowance even when they can't receive it because of an earnings rule.

Enhanced Disability Addition A further £31.50 a week for a single person if you receive the daily living component of PIP at the enhanced rate.

These can stack. A single person receiving enhanced-rate PIP, with no one claiming Carer's Allowance on their behalf, could have a Guarantee Credit minimum of £218.15 plus £81.50 plus £31.50, putting their weekly income floor at over £330 before any savings income adjustments.

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How does the DWP treat savings and investments?

This is where people often talk themselves out of claiming before they've even picked up the phone, and in my experience that's a mistake.

Pension Credit uses what's called a "tariff income" calculation for capital above £10,000. For every £500 you hold above that figure, the DWP assumes you're earning £1 a week from it. So if you have £16,000 in savings, that's £12,000 above the £10,000 threshold, which equals £24 a week of assumed income added on top of your real income.

The first £10,000 in savings is ignored entirely. And crucially, the value of your home is not counted at all.

If the assumed income, added to your real weekly income, still falls below £218.15 (for a single person), you're entitled to the difference.

A quick example: a single woman with a State Pension of £160 a week and £20,000 in a savings account. The £20,000 is £10,000 above the threshold, so the DWP adds £20 a week of assumed income. Her assessed income is £180 a week. She's still £38.15 below the guarantee, so she'd receive £38.15 in Guarantee Credit. Straightforward enough, once you know the rule.

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Does the State Pension count as income for Pension Credit?

Yes, it does. Your full State Pension counts as weekly income when the DWP calculates your Pension Credit entitlement. So does any private or workplace pension, most annuity income, and any earnings if you're still working.

Things that are not counted as income include Attendance Allowance, the care component of Disability Living Allowance, PIP daily living components, and certain other disability benefits. Housing Benefit is also disregarded.

This is one reason the new full State Pension (currently £221.20 a week in 2025/26, to be uprated in April 2026) creates a slightly odd situation: some people receiving the full new State Pension may be just over the Guarantee Credit threshold for a single person and miss Pension Credit entirely. But anyone on a reduced State Pension, or with a lower income from other sources, should certainly check.

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How is Pension Credit calculated if I have a partner?

The couple's threshold of £332.95 applies if you and your partner are both over State Pension age. If one of you is below State Pension age, the calculation shifts to Universal Credit rules rather than Pension Credit, which can make a material difference. Age UK has a useful summary of this mixed-age couple rule if your situation falls into that bracket.

For standard couples where both are over State Pension age, the DWP pools your income and savings, applies the same tariff income rules to joint capital above £10,000, and measures the combined total against £332.95 a week.

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Why do so many people miss out?

About 880,000 households eligible for Pension Credit aren't claiming it, according to DWP's own estimates (DWP, Income-related benefits: estimates of take-up, 2023/24). That's a staggering gap, and it costs those households an average of around £3,900 a year in unclaimed benefit.

The reasons I hear most often: people assume they won't qualify because they have savings, or they assume the amounts involved aren't worth the paperwork, or they haven't heard of Savings Credit and don't realise it applies to them. Some are put off by memories of previous claim forms that were unnecessarily complex.

The claim itself has actually become more manageable. You can call the Pension Credit claim line on 0800 99 1234 (free, including from mobiles), and if you'd rather have a hand getting started, Age UK's benefits advice service will help you without charge.

For a full walkthrough of the application process, see our guide to how to claim Pension Credit.

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