If you’re a UK pensioner or have a loved one who is, this is the news you’ve been waiting for. The Department for Work and Pensions (DWP) has confirmed that thousands more pensioners are now eligible to claim up to £3,900 in extra income annually through Pension Credit—a powerful but underused benefit that helps low-income retirees.
In this guide, we’ll explain:
- What Pension Credit is
- Who qualifies and how to apply
- Extra perks it unlocks (like free TV licences and energy help)
- And how you or someone you love can avoid missing out on thousands of pounds
DWP Confirms Thousands of Pensioners Can Now Claim Extra £3900
| Key Detail | Information |
|---|---|
| Who’s eligible | Pensioners over State Pension age on a low income |
| Average value | ~£3,900 per year |
| Recent claim surge | 181,100 new approvals in the past year |
| Other unlocked benefits | Council tax relief, Warm Home Discount, NHS support, social tariffs |
| Apply via | DWP Pension Credit Portal |
| Help available | Age UK, local councils, MoneyHelper |
| Estimated unclaimed amount | Over £1.7 billion annually |
The DWP’s confirmation that thousands more pensioners can now claim up to £3,900 annually in extra support is more than good news—it’s a lifeline. And with inflation and energy costs climbing, now is the time to act. Whether you’re eligible yourself or helping a family member, Pension Credit can unlock cash and critical support. Don’t leave free money on the table. Check, apply, and enjoy the comfort and dignity you’ve earned.
What is Pension Credit?
Pension Credit is an income-related, tax-free benefit for UK residents over State Pension age. It helps top up your income if you’re not earning enough from your State Pension or other sources.
Why does it matter now?
With energy bills rising, grocery costs sky-high, and inflation stretching every pound, Pension Credit is one of the few tools that puts real money back in your pocket—year after year.
“It’s heartbreaking how many people don’t realise they’re eligible,” says Caroline Abrahams, charity director at Age UK. “This money can be life-changing.”
What Happens Next? Your Pension Credit Timeline
- Now: The DWP is urging all eligible pensioners to check their entitlement and claim Pension Credit, as many are missing out on thousands of pounds.
- Backdating: You can backdate your claim by up to three months, so you can still receive a significant lump sum if you apply soon.
- Ongoing Benefits: If your claim is successful, your regular payments will begin, and you will become eligible for a wide range of other “passported” benefits automatically.
- Future: The DWP will continue to promote awareness of Pension Credit to ensure more people get the financial support they are entitled to.
How Much Is It Worth?
The average Pension Credit award is worth £3,900 per year, or about £75 a week. That’s £325 a month—more than enough to cover groceries, utilities, or heating.
Weekly Income Thresholds (2025)
| Status | Minimum Weekly Income |
|---|---|
| Single | £218.15 |
| Couple | £332.95 |
If your income falls below these thresholds, the government tops you up to meet them.
Comparison Table
| Feature | Pension Credit | State Pension |
| Eligibility | Low income, over State Pension age | Based on National Insurance contributions |
| Purpose | Tops up your weekly income to a guaranteed minimum | A regular income from the government after you retire |
| Extra Benefits | Yes (e.g., free TV licence, Council Tax support) | No, but may enable other benefits if your income is low |
| Claim Process | You must apply and provide details of income and savings | Usually paid automatically once you reach State Pension age |
Eligibility: Who Can Apply?
Here’s your simple checklist
You can apply if:
- You (or your partner) are over State Pension age (currently 66)
- You live in England, Scotland, or Wales
- Your weekly income is below the amounts above
- You don’t have over £16,000 in savings (for Housing Benefit add-ons)
Owning your home DOES NOT disqualify you
Having a private pension is fine
Even if you think “I’ve got too much saved” or “I don’t qualify,” check anyway—you might still be eligible.
Benefits Beyond Cash
Pension Credit opens the door to even more financial support:
Benefits That Come With Pension Credit
- Warm Home Discount – £150 off energy bills
- Free TV Licence (if 75+)
- Council Tax Reductions
- Free NHS Prescriptions & Dental Care
- Cheaper Broadband & Water Bills (Social Tariffs)
- Housing Benefit – rent support
Claiming just Pension Credit can snowball into £1,000s in added support
True Story: Jim & Sheila’s Journey
Jim and Sheila, both 72 and living in Newcastle, thought they “earned too much” to qualify. Turns out, Sheila’s small pension didn’t count as much as they thought.
After applying, they now receive:
- £84/week in Pension Credit
- Free prescriptions
- Council tax help
- And £150 off their winter energy bill
“It was like getting a pay rise in retirement,” said Jim. “All because our neighbour told us to check.”
Don’t Fall for These Myths
“I don’t qualify because I own my home.”
WRONG! Homeownership doesn’t matter.
“I only have a small private pension—it’ll disqualify me.”
Nope. The DWP considers total income, and Savings Credit may apply too.
“I’m too late to apply.”
Not true. You can backdate your claim up to 3 months.
How to Apply (Fast)
You’ll need:
- National Insurance Number
- Income details
- Savings/pension details
- Bank account info
Need Help Applying?
Don’t worry—you don’t have to go it alone. Here’s where to get support:
Trusted Places That Help for Free:
- Age UK Local Advisors – in-person help
- Local councils – many offer benefit assistance drop-ins
- Citizens Advice – free legal and benefit support
- MoneyHelper – easy-to-use calculators and forms
Top 3 Mistakes to Avoid When Claiming Pension Credit
- Myth: “I have a house and savings, so I can’t claim.” This is one of the biggest reasons people miss out. Your home is not included in the calculation, and a certain level of savings is allowed without affecting your entitlement. Always check!
- Mistake: Waiting too long to apply. You can backdate your claim for up to three months. The sooner you apply, the more you could receive in your first payment.
- Mistake: Not claiming because the weekly amount seems small. A small amount of Pension Credit can be your key to unlocking other major benefits that could be worth thousands of pounds a year, such as Council Tax reductions, help with heating bills, and a free TV licence.
How Mary Gained an Extra £4200
Mary, 78, a widow from Dorset, thought she wasn’t eligible for Pension Credit because she had a small private pension and her own home. A friend told her to check the DWP website, and she discovered she qualified. Her weekly income was topped up by £40 a week, amounting to over £2,000 a year. But the real game-changer was the free TV licence and Council Tax reduction she also received, saving her an additional £2,200 annually. She was amazed and wished she had checked sooner.
FAQs
I’m already getting Housing Benefit. Can I still apply?
Yes! Pension Credit can work alongside other benefits and may increase what you get.
My partner is under pension age. Can we apply?
Yes, but you’ll be assessed under “mixed-age couple” rules. You may still qualify.
What’s Savings Credit?
Savings Credit is a bonus benefit for those who saved a bit for retirement but still need help. It’s available to people who reached State Pension age before 6 April 2016.
Is Pension Credit taxable?
No. It’s completely tax-free.
Call to Action: Don’t Miss Out
More than 850,000 households are missing out on this crucial support.
Don’t be one of them. Check today, even if you think you won’t qualify. It’s fast, free, and could add thousands to your annual income.
