The Pension Credit standard minimum guarantee increased from £227.10 per week to £238 in April 2026, providing state pensioners with an extra £566 a year. This Department for Work and Pensions (DWP) benefit is available to all pensioners who meet the criteria, regardless of marital status.
What Is Pension Credit?
Pension Credit is an additional benefit that can be claimed on top of the State Pension by those who have retired and reached pension age. It consists of two parts: Guarantee Credit and Savings Credit. Guarantee Credit tops up weekly income to a government-set level, while Savings Credit rewards those who have saved for retirement.
Guarantee Credit Details
For single pensioners, if weekly income is below £238 (2026/27 rate), Pension Credit will top it up to that amount. For couples with a joint income below £363.25 per week, the benefit brings combined income to this level. According to DWP data, around one in ten Pension Credit claimants did not receive the full amount they were entitled to in 2024-25, indicating significant underclaiming.
Savings Credit Phased Out
Savings Credit provides extra money for those who have saved for retirement, such as through a workplace pension. It is being phased out, but remains available for those who reached State Pension age before 6 April 2016. The starting level for Savings Credit is £198.27 per week for single people and £314.34 per week for couples. If income is below this, no Savings Credit is paid. If income is just above, the amount is 60% of the difference, up to a maximum. Higher income reduces the payout, as some is deducted.
Impact on Pensioners
The £566 annual increase helps pensioners cope with rising living costs. Pension Credit also acts as a gateway to other benefits, such as help with housing costs, council tax reduction, and free TV licences for over-75s. The DWP encourages eligible pensioners to apply, as many miss out on the full entitlement.
