The Department for Work and Pensions (DWP) has announced a Pension Credit increase for couples, set to take effect from April 2025.
This adjustment will raise weekly payments to £346.60, providing much-needed financial assistance to retired couples facing the rising cost of living.
If you or your partner qualify, this increase could make a significant difference in your household budget. Here’s everything you need to know about eligibility, how to apply, and the impact of this boost.
DWP Pension Credit Raise
| Aspect | Details |
|---|---|
| New Weekly Payment | £346.60 for couples |
| Effective Date | April 2025 |
| Eligibility | One partner must be at State Pension age |
| Income Considered | State Pension, private pensions, savings, and other financial assets |
| Additional Benefits | Free NHS prescriptions, council tax discounts, and winter heating assistance |
| How to Apply | Online, by phone, or via paper application |
What Is Pension Credit?
Pension Credit is a government benefit that helps pensioners with low incomes by providing extra financial support.
It ensures that retirees receive a minimum guaranteed income, even if they have limited contributions from pensions or savings.
Pension Credit Has Two Components:
- Guarantee Credit – Tops up weekly income to £201.05 for single pensioners and £346.60 for couples.
- Savings Credit – A small extra payment for those who saved for retirement, but only available for those who reached State Pension age before April 6, 2016.
This increase means couples receiving Pension Credit Guarantee will now receive at least £346.60 per week, helping them manage essential expenses like food, rent, and bills.
Eligibility Criteria for Pension Credit
To qualify for Pension Credit, you must meet these conditions:
- One partner must have reached State Pension age (currently 66).
- Your combined income must be below the new threshold of £346.60 per week.
- Income considered includes:
- State Pension
- Private pensions
- Earnings from work
- Savings over £10,000 (savings above this amount may reduce the benefit slightly).
If your income is slightly higher, you may still qualify for additional benefits, such as help with housing costs or NHS prescriptions.
How to Apply for Pension Credit
Applying for Pension Credit is simple and can be done in three ways:
1. Online Application
- Visit the GOV.UK website and use the Pension Credit application service.
- Provide details about income, savings, and living situation.
2. Phone Application
- Call the Pension Credit claim line at 0800 99 1234.
- A representative will guide you through the application process.
3. Paper Application
- Request a paper form via phone or download it from GOV.UK.
- Fill it out and mail it to your nearest Pension Credit processing center.
Important: Claims can be backdated up to three months, so apply as soon as possible to avoid missing out on payments.
How the Pension Credit Increase Helps Retirees
The increase in Pension Credit will provide significant financial relief for retired couples, allowing them to:
- Afford essential expenses, including food and energy bills.
- Qualify for additional support, such as:
- Free NHS prescriptions
- Council tax discounts
- Cold Weather Payments and Warm Home Discount
For pensioners struggling with rising living costs, this boost ensures greater financial stability.
Additional Benefits for Pension Credit Claimants
Receiving Pension Credit can also unlock other financial assistance, including:
| Benefit | How It Helps |
|---|---|
| Housing Benefit | Helps with rent payments |
| Council Tax Reduction | Lowers council tax bills |
| Winter Fuel Payment | Provides heating cost support in winter |
| Free NHS Prescriptions | Covers prescription costs for pensioners |
| Help with Dental and Eye Care | Covers NHS dental treatment and free eye tests |
If you’re already claiming Pension Credit, you don’t need to reapply—the increase will be applied automatically from April 2025.
Why This Increase Matters
With the cost of essentials rising year after year, pensioners are among the groups most affected by inflation. The government’s increase to £346.60 per week ensures that couples relying on Pension Credit receive the financial security they need.
If you think you might qualify, apply as soon as possible to take advantage of this vital support. Visit GOV.UK Pension Credit page for more details.
