State Pensioners Receiving Under £346 May Be Eligible for a £4,300 Increase

New data from the Department for Work and Pensions (DWP) shows a sharp rise in applications for Pension Credit following the July 29, 2024, announcement restricting Winter Fuel Payments to those on Pension Credit and other income-based benefits. In the year since, claims have jumped by 44%, adding 98,200 new applications to reach 320,300 total claims.

By July 2025, approximately 181,100 applications had been successfully approved, reflecting an increase of 57,200 claims compared to the same time last year.

Pension Credit Support Across the UK

Currently, 1.4 million pensioners on low incomes benefit from Pension Credit across the UK. The benefit, valued at over £4,300 per year, is designed to support retirees struggling with living costs.

David Brooks, Head of Policy at Broadstone, highlighted:

“It’s encouraging that over 57,000 more pensioners now access this essential support. However, many households still fail to claim despite being eligible.”

Brooks also emphasized that while the government’s changes have boosted awareness, more must be done to bridge the gap, especially as older citizens continue to face rising living costs, State Pension adequacy concerns, and new tax pressures.

Understanding Pension Credit Eligibility

Pension Credit is divided into Guarantee Credit and Savings Credit.

Guarantee Credit

To qualify:

• Must be State Pension age (66+).
• Weekly income must be below the government’s set threshold:
  • £227.10 for single pensioners
  • £346.60 for couples
• Higher amounts may apply if you are disabled, a carer, or have certain housing expenses.

Savings Credit

Eligibility requires:

• Reaching State Pension age before April 6, 2016, or living with a partner who did.
• Weekly qualifying income of at least:
  • £198.27 for singles
  • £314.34 for couples

How Much You Could Receive

Type of Credit	Weekly Support	For Singles	For Couples
Guarantee Credit	Income top-up	£227.10	£346.60
Savings Credit	Extra payment	Up to £17.30	Up to £19.36

Your actual amount depends on income, savings, and capital above £10,000.

Additional Benefits with Pension Credit

Qualifying for Pension Credit can unlock several other forms of financial help, including:

• Housing Benefit (if renting)
• Support for Mortgage Interest (if owning)
• Council Tax reductions
• Free TV licence for over-75s
• NHS cost support for dental, eye care, and hospital travel
• Warm Home Discount Scheme (help with heating costs)
• Discounted Royal Mail redirection when moving house

Mixed Age Couples Rule

Since May 2019, mixed age couples—where one partner is below State Pension age—are considered a working-age household for benefit purposes. This means they cannot claim Pension Credit until both partners reach State Pension age.

Pension Credit Calculator and How to Apply

To check eligibility, pensioners can:

• Use the Pension Credit Calculator on GOV.UK.
• Call the Pension Credit Helpline on 0800 99 1234 (Monday–Friday, 8am–6pm).
• Seek advice from Citizens Advice, Age UK, Independent Age, or Income Max.

When applying, you’ll need:

• National Insurance number
• Income, savings, and investment details
• Bank account details (if applying by phone or post)

Applications can be submitted up to 4 months before State Pension age and can be backdated for 3 months.

The surge in Pension Credit applications demonstrates that restricting Winter Fuel Payments has heightened awareness of this under-claimed benefit. While more retirees are now accessing support, many still miss out due to misconceptions about eligibility.

With the ongoing cost-of-living crisis, pensioners are strongly encouraged to check their eligibility and claim the financial help they deserve.

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