The Department for Work and Pensions (DWP) has confirmed a substantial increase to a key benefit for older people on low incomes, set to take effect in the coming financial year.
Significant Boost to Pensioner Incomes
From April 2026, Pension Credit payments will rise by 4.8 per cent, in line with average earnings growth. This increase forms part of the government's Triple Lock policy, which ensures state pensions and certain benefits rise by the highest of price inflation, earnings growth, or 2.5 per cent.
For single pensioners, the Standard Minimum Guarantee under Pension Credit will increase by £10.90 per week, taking the total to approximately £238.00 weekly. This equates to a monthly rise of around £47.27, or an annual boost of over £566.
For couples, the increase is even more pronounced. The weekly rate will rise by £16.65, reaching about £363.25. Over the course of a full year, this represents a significant uplift of £865 for eligible couples.
Understanding Pension Credit and Eligibility
Pension Credit is a vital, yet often under-claimed, benefit designed to provide additional financial support for people over State Pension age who are on a low income. There are two main components: Guarantee Credit and Savings Credit.
To qualify for the core Guarantee Credit, you must have reached the State Pension age, which is currently 66. Your weekly income must be below the minimum amount the government says you need to live on. As of now, this threshold is £227.10 for a single person and £346.60 for a couple. This amount can be higher if you have disabilities, are a carer, or have specific housing costs.
Savings Credit is available to those who reached State Pension age before 6 April 2016. It provides extra money if you have made some provision for retirement through savings or a private pension. Currently, it can offer up to £17.30 a week for a single person or £19.36 for a couple.
Why This Increase Matters
This planned increase is a direct intervention aimed at protecting the living standards of some of the most financially vulnerable pensioners during a period of economic pressure. The DWP emphasises that Pension Credit acts as a crucial top-up, ensuring that no pensioner's income falls below a certain weekly level.
The exact amount an individual receives depends on their specific circumstances, including their total income and any savings over £10,000. The DWP encourages all eligible pensioners, or their families, to check their entitlement, as claiming Pension Credit can also act as a gateway to other support such as help with council tax, NHS costs, and a free TV licence for those aged 75 and over.
With the confirmed rise set for April 2026, retirees are advised to review their eligibility for this important benefit to ensure they receive the full financial support they are entitled to.
