A major warning from the Department for Work and Pensions (DWP) has revealed that over 800,000 pensioners in the UK could miss out on a £470 annual increase to their State Pension from April 2025. The reason? They haven’t claimed Pension Credit—a powerful but often-overlooked benefit that not only tops up income but also unlocks extra support. Here’s everything you need to know.
What’s Happening in April 2025?
From April 2025, the State Pension is set to rise by around £470 per year (roughly £9 per week). This hike is a result of the Triple Lock system, which ensures pensions increase annually based on whichever is highest: inflation, average wage growth, or 2.5%.
Why Are So Many Missing Out?
Despite this increase, around 800,000 pensioners are likely to miss the extra money because they haven’t claimed Pension Credit. Without this claim, many low-income retirees won’t qualify for the full pension boost or other related benefits.
What is Pension Credit?
Pension Credit is a benefit designed to help older people with low income. It comes in two parts:
Guarantee Credit – tops up weekly income to:
£218.15 for single people
£332.95 for couples
Savings Credit – extra money for those who saved for retirement (available only to those who reached pension age before 6 April 2016)
Hidden Benefits of Pension Credit
Pension Credit is more than just a top-up. Claimants may also receive:
Free NHS dental treatment
Help with rent or mortgage payments
Council Tax reduction
Winter Fuel Payments
Free TV licence (if over 75)
How Much Could You Be Losing?
By not claiming Pension Credit, some pensioners are losing an average of £3,900 a year in income and benefits. Additionally, they could miss the £470 pension rise in April 2025.
Do You Qualify? Quick Eligibility Checklist
Ask yourself:
Are you over the State Pension age?
Is your weekly income below £218.15 (single) or £332.95 (couple)?
Do you have savings under £10,000? (You may still qualify with more savings)
Do you pay rent, mortgage, or housing costs?
Did you reach pension age before 6 April 2016? (for Savings Credit)
How to Claim Pension Credit: Step-by-Step
Step 1: Check eligibility via GOV.UK Pension Credit Checker
Step 2: Gather information about income, savings, and housing costs
Step 3: Apply in any of these ways:
Online through GOV.UK
Phone: 0800 99 1234
Post: Request a paper form
Step 4: Claims can be backdated up to 3 months
FAQs – Frequently Asked Questions
1. I have savings over £10,000. Can I still claim Pension Credit?
Yes. However, for every £500 above £10,000, £1 is counted as income. This might reduce the amount you receive.
2. Does claiming Pension Credit affect my Housing Benefit?
Not negatively. In fact, Pension Credit often increases your eligibility for additional housing support.
3. Is Pension Credit the same as State Pension?
No. Pension Credit is a separate benefit designed to supplement low-income retirees. It can be claimed in addition to your State Pension.
4. Do couples have different income thresholds?
Yes. For couples, the combined income threshold is £332.95 per week.
5. What if I miss the April 2025 increase?
You can still claim Pension Credit up to 3 months back, but it’s best to act now to avoid missing out on the boost.