Quick summary
Pension Credit tops up a low income in retirement, and claiming it opens the door to Council Tax help, a free TV licence over 75, help with NHS costs and more. Around 880,000 eligible households do not claim it. There is no upper savings limit, and owning your home makes no difference.
What it is
A means-tested top-up from the DWP for people over State Pension age on a low income. It has two parts.
Guarantee Credit is the main part. It brings weekly income up to a guaranteed minimum. For 2026/27 that minimum is around £238 a week for a single person and £363.25 for a couple. If income falls below it, Pension Credit pays the difference.
Savings Credit is a smaller additional amount, and only for people who reached State Pension age before 6 April 2016.
Rates change every April, so check the current figures on GOV.UK or with Age UK before relying on them.
Why it matters more than the weekly amount
Because of what comes with it. Even a very small award acts as a passport.
- Council Tax Reduction, potentially the full bill.
- A free TV licence for anyone aged 75 or over.
- Help with NHS costs, including dental treatment, sight tests and prescriptions.
- Housing Benefit for renters.
- The Warm Home Discount and Cold Weather Payments.
- Help with the cost of a funeral in some circumstances.
This is why claiming even £1 a week is worth doing. A tiny Guarantee Credit award can be worth several thousand pounds a year once the associated help is counted.
The four reasons people wrongly rule themselves out
“We have savings.” There is no upper savings limit for Guarantee Credit. Savings are treated as producing a notional income: broadly, every £500 above £10,000 counts as £1 a week of income. Someone with £20,000 in the bank can still qualify.
“She owns her house.” The home you live in is not counted at all. A pensioner in a house worth £400,000 can receive Pension Credit if their weekly income is low enough.
“He gets the State Pension.” The State Pension is income, and Pension Credit tops income up to the minimum. Plenty of people on the full new State Pension still qualify once additions are included.
“We’re just over the limit.” This is the biggest trap. The guarantee level rises if someone has extra needs, including a severe disability addition and an addition for carers. Those additions can bring someone into entitlement who would not otherwise qualify, which is why an Attendance Allowance award can unlock Pension Credit even though nothing else has changed.
The Attendance Allowance connection
This is the sequence most families miss:
- Claim Attendance Allowance first. It is not means-tested, and from April 2026 it pays £76.70 or £114.60 a week. Our guide to the assessment process and the Attendance Allowance article explain how.
- Then reapply for Pension Credit, even if you were turned down before. Attendance Allowance itself is ignored as income, and it can trigger the severe disability addition, which raises the guarantee level.
- Then claim the Council Tax help that Pension Credit unlocks, and check the severe mental impairment disregard separately if dementia is involved, since that is a different scheme again.
How to claim
- Online through GOV.UK, by phone on the Pension Credit claim line, or by post.
- You can claim up to four months before reaching State Pension age.
- Claims can be backdated up to three months where you were eligible throughout, with arrears paid in the first payment. Ask for backdating explicitly.
- Have to hand: National Insurance number, details of all income including private pensions, savings and investment balances, and details of any disability benefits.
Free help with the form is available from Age UK and Citizens Advice.
The things that catch people out
- Claiming the State Pension does not claim Pension Credit. They are separate, and nobody does it automatically.
- A change of circumstances can create entitlement. Bereavement, a new disability benefit award or a partner moving into a care home all change the calculation.
- Deferring the State Pension to build it up is usually pointless for someone who will rely on Pension Credit, because every extra pound of State Pension reduces Guarantee Credit by a pound. Take advice before paying voluntary National Insurance contributions.
- Being turned down once means nothing later. Rates rise every April and circumstances change.
Where to get help locally
- Age UK Cheshire East for benefits advice and help with forms.
- Citizens Advice, free and independent.
- Cheshire East Council’s Live Well directory, which lists local advice services.
- For Buxton and Whaley Bridge, Age UK Derby and Derbyshire. For Leek, Biddulph and Kidsgrove, Age UK Staffordshire. Our guide to the council boundaries explains which applies where.
Frequently asked questions
Can I get Pension Credit if I have savings?
Yes. There is no upper savings limit for Guarantee Credit. Savings above £10,000 are treated as producing a small notional income, which reduces the award rather than removing eligibility.
Does owning a house stop me claiming?
No. The home you live in is disregarded entirely.
How much is Pension Credit worth?
The award is the gap between income and the guarantee level, so it varies from pennies to a substantial weekly sum. Government estimates put the average value to non-claiming households at several thousand pounds a year once linked help is included.
Can I claim for my mum?
You can help her complete the claim, and she needs to make it. If she cannot manage her own affairs, an attorney or appointee can act for her.
Does Pension Credit affect care charges?
It counts as income in a council financial assessment for care, so it may slightly increase an assessed contribution. It is still worth considerably more than it costs, and it has no effect at all for people paying privately.
What if we were refused before?
Reapply. Rates rise each April, and an Attendance Allowance award or a bereavement can change entitlement entirely.
About Visiting Angels Cheshire East
Visiting Angels Cheshire East provides care at home across Macclesfield, Wilmslow, Knutsford, Congleton, Alsager and the surrounding villages of East Cheshire, along with Buxton, Whaley Bridge and the Staffordshire Moorlands towns. You can see all the areas we cover.
- You choose your caregiver, and meet them before care starts.
- No visit is ever shorter than an hour.
- You see the same faces. Our carer turnover is 12 per cent, against a sector figure of 23.7 per cent (Skills for Care, 2025).
- Carers trained in dementia, Parkinson’s, stroke recovery and complex care.
- Live-in care available, up to full time.
Sharon’s mother had been having visits for a fortnight when she wrote this:
“It is not something we ever thought we would need but Visiting Angels have been wonderful. They came to see us to find out exactly what we needed, even though we weren’t completely sure ourselves, but through our conversation we were able to put a package of support in place. They offered advice on other things that were available to us as well particularly financially. They put our minds at ease during what was quite a stressful time in our lives.”
Sharon Thornton, Google review
Not sure what you need yet? Start with a free assessment
Our free home care assessment is a visit at a time that suits you, with no obligation afterwards. In it we will:
- Work out what is actually difficult, and which times of day.
- Talk through a realistic package, and what it would cost.
- Look at the money with you, including Attendance Allowance, Pension Credit and the Council Tax disregard, and point you at free advice services for the forms.
- Tell you honestly if you do not need us yet.
If money is the reason you have not rung anyone, call us on 01625 720157 and we will go through what may be available first. You can also send an enquiry, and you can see what our services cover.
Authored by Dr Haroon Ahmad, Managing Director, Visiting Angels Cheshire East.
Published 27 September 2026. Last updated 27 September 2026.
This article is general information about benefits, not financial or legal advice, and no substitute for advice about an individual’s circumstances. We are not regulated financial advisers and are not connected to the DWP. Benefit rates change each April and the figures here were correct at the date of publication; check GOV.UK for current amounts before relying on them. Free independent help with claims is available from Age UK and Citizens Advice. To the fullest extent permitted by law, GB Care at Home Ltd accepts no liability for any loss arising from reliance on this article.
