If you’re a pensioner in the UK, there’s some important news from the Department for Work and Pensions (DWP) for 2025. Changes to Pension Credit thresholds have just been introduced, and they could mean more money in your pocket – or at least a fairer deal to help with the rising cost of living.
This guide will walk you through what’s changed, who can apply, and how to make sure you’re getting everything you’re entitled to.
What is Pension Credit?
Pension Credit is a benefit designed to top up your income if you’ve reached State Pension age and your earnings are below a certain level. It comes in two parts:
- Guarantee Credit – tops up your weekly income to a minimum level.
- Savings Credit – gives a little extra if you’ve managed to put some money aside for retirement.
Many people don’t realise they qualify, which means thousands of pensioners miss out every year.
New Thresholds for 2025
From April 2025, the DWP has raised the income limits:
- Single pensioner: Minimum income topped up to £201.20 per week
- Couples: Minimum income topped up to £306.80 per week
The idea is to help pensioners keep pace with rising household costs. If your income is below these levels, Pension Credit can make up the difference.
Who Can Claim?
To qualify, you need to:
- Have reached State Pension age
- Live in England, Scotland, or Wales
- Have a total income (including pensions, savings, and certain benefits) below the threshold
Savings over £10,000 don’t automatically disqualify you, but they may reduce the amount you receive. The easiest way to check is by using the DWP’s Pension Credit calculator online or calling their helpline.
How to Apply
You can apply:
- Online – via the official GOV.UK website
- By phone – calling the Pension Credit claim line
- By post – with a paper application form
You’ll need details of your income, savings, housing costs, and any benefits you already receive. Processing usually takes 4–6 weeks, so applying early is a good idea.
Extra Benefits You Could Get
Pension Credit doesn’t just boost your income – it can also unlock other forms of support, including:
- Housing Benefit (if you rent)
- Council Tax Reduction
- Free NHS dental treatment and prescriptions
- Cold Weather Payments
- Help with funeral costs
Even if you’re only entitled to a small top-up, the extra benefits can be worth hundreds of pounds each year.
Changes to Savings Credit
Savings Credit is available to people who reached State Pension age before April 2016. With the 2025 adjustments, some pensioners with modest savings or a small private pension may now qualify for extra weekly payments.
Why You Should Check Now
Even small changes in your circumstances – such as reduced income or a new health condition – could make you eligible. It’s worth reviewing your situation at least once a year to make sure you’re not missing out.
Quick Tips to Maximise Your Claim
- Keep your income and savings records up to date
- Apply as soon as you think you might qualify
- Get advice from your local Citizens Advice or Age UK branch
- Check again if your circumstances change
Final Word
With the cost of living showing no signs of slowing down, Pension Credit is an important lifeline for many older people. The 2025 changes mean more pensioners could now qualify – but you won’t know until you check. Taking ten minutes to review your eligibility could make a real difference to your weekly budget.