The UK government has confirmed an increase in Pension Credit for couples, raising the weekly amount to £346.60 starting in April 2025. This change aims to provide financial relief to low-income pensioners, helping them cope with the rising cost of living.
If you or someone you know is eligible, now is the time to check your entitlement and ensure you receive the full benefits available.
UK New £346.60 Pension Credit
Pension Credit is a government benefit designed to boost the income of low-income retirees, ensuring they have enough money to cover essential living costs.
Many eligible pensioners miss out on this benefit simply because they don’t apply, potentially losing access to additional financial help like housing support, NHS benefits, and council tax reductions.
Increase
The 2025 Pension Credit increase offers couples an extra £13.65 per week, helping them maintain financial stability in retirement. Below is a comparison of the current and new rates:
| Key Information | Details |
|---|---|
| New Weekly Rate (April 2025) | £346.60 for couples |
| Current Weekly Rate | £332.95 for couples |
| Eligibility | Must be of State Pension age with low income |
| Application Methods | Online, phone, or post |
| Additional Benefits | Housing support, NHS help, free TV license |
| Official Source | Gov.uk Pension Credit |
Ensuring you claim Pension Credit not only boosts your income but also unlocks other vital financial support that can significantly ease living expenses.
What is Pension Credit?
Pension Credit is a two-part benefit aimed at supporting pensioners with limited income:
- Guarantee Credit – Tops up weekly income to ensure a minimum standard of living.
- Savings Credit – Provides extra payments for those who have modest savings or additional income from private pensions.
By claiming Pension Credit, pensioners automatically qualify for additional financial relief, including heating cost assistance, NHS benefits, and council tax discounts.
Eligibility
To qualify for the new £346.60 weekly rate in 2025, you must meet these criteria:
1. Age Requirement
You must have reached State Pension age, which is currently 66 years. However, future changes to the pension age may affect eligibility, so it’s essential to check government updates regularly.
2. Income Threshold
Your total weekly income, including pensions, savings, and earnings, must be below:
- £201.05 per week for a single person.
- £346.60 per week for couples.
Even if your income slightly exceeds this threshold, you may still be eligible for partial Pension Credit, which can offer valuable financial relief.
3. Residency Requirement
You must live in England, Scotland, or Wales. Northern Ireland has separate Pension Credit rules, so applicants there should check local government guidelines.
Application
Applying for Pension Credit is quick and simple, and you can start up to 4 months before reaching State Pension age.
Step-by-Step Guide to Apply
- Gather Required Information
- National Insurance number
- Details of income, savings, and investments
- Bank account information
- Proof of identity (passport, driving license, or birth certificate)
- Choose Your Application Method
- Online – Apply via the Gov.uk Pension Credit website.
- By Phone – Call the Pension Credit claim line at 0800 99 1234.
- By Post – Download a form from Gov.uk, complete it, and send it to the provided address.
- Receive Confirmation
- Once your application is processed, you will receive a decision letter detailing your entitlement and next steps.
Tip:
If you need help applying, charities like Age UK and Citizens Advice offer free guidance to assist pensioners with their applications.
Benefits
Claiming Pension Credit unlocks several additional financial and social benefits, making life more affordable.
1. Financial Assistance
- Guaranteed Income – Ensures pensioners receive at least £346.60 per week (couples).
- Savings Credit – Provides extra payments for pensioners who saved for retirement.
2. Health Benefits
- Free NHS prescriptions, dental care, and eye tests.
- Help with hospital transport costs, reducing healthcare expenses.
3. Housing and Living Costs
- Council Tax Reduction – Up to 100% discount, significantly lowering bills.
- Help with rent payments – Support through Housing Benefit for eligible claimants.
- Assistance with heating costs – Access to Cold Weather Payments and Winter Fuel Allowance.
4. Free TV License
- Pensioners aged 75 and over can apply for a free TV license, saving £159 per year.
Why This Increase Matters
The 2025 Pension Credit increase is a lifeline for struggling pensioners, helping them cope with rising living costs. While the increase may seem small, it offers vital financial security for low-income retirees.
Many pensioners miss out on Pension Credit simply because they don’t apply. If you meet the eligibility criteria, claiming this benefit can provide peace of mind and access to a wide range of financial support.
If you believe you qualify, don’t delay—apply today and ensure you receive the financial assistance you deserve.
FAQs
When does the new Pension Credit rate start?
The new £346.60 rate begins in April 2025.
Who qualifies for Pension Credit in 2025?
Pensioners with low income who meet the eligibility criteria.
Can I apply for Pension Credit online?
Yes, you can apply online via Gov.uk or by phone or post.
What benefits come with Pension Credit?
It provides housing support, NHS help, and a free TV license.
How much is the Pension Credit increase for couples?
The weekly rate increases from £332.95 to £346.60.
