The Department for Work and Pensions has outlined cost of living financial support available for people over State Pension age, including details on Pension Credit and winter payments
The Department for Work and Pensions ( DWP ) has outlined the financial support available to help those over State Pension age with the cost of living. Pensions Minister Torsten Bell stated that the Department is “committed to helping pensioners with the cost of living and ensuring financial security in retirement”.
His remarks were made in a written response to Conservative MP Sir Andrew Mitchell, who had enquired about assistance for residents in his Sutton Coldfield constituency dealing with the cost of living. However, the additional financial aid he detailed serves as a useful checklist for pensioners nationwide to ensure they are not missing out on extra funds or benefits, particularly at this time of year.
The Pensions Minister emphasised that the State Pension is the “foundation of income in retirement and will remain so”. He added: “At Autumn Budget 2025 we announced that, in line with the government’s commitment to the Triple Lock throughout this parliament, over 12 million pensioners will benefit from a 4.8 per cent increase to their Basic or New State Pension in April 2026, increasing their income by up to £575 a year.”
Mr Bell pointed out that pensioners received a “substantial increase in 2025/26, with those receiving a full new State Pension getting a £360 boost”.
He further noted that the Pension Credit Standard Minimum Guarantee will rise by 4.8 per cent in April, going up from £227.10 to £238 a week for a single pensioner and from £346.60 to £363.25 a week for a couple, reports the Daily Record.
Mr Bell declared that the Pension Credit rises are “protecting the income of the poorest pensioners”.
Pensioners claiming Pension Credit across England and Wales will automatically qualify for the Cold Weather Payment along with additional benefits.
Scottish pensioners will receive the annual Winter Heating Payment worth £59.75 by mid-February without needing to apply.
The Pensions Minister went on: “The Winter Fuel Payment will benefit over three quarters of pensioners for the duration of this parliament, targeting help to those on lower and middle incomes while ensuring fairness for pensioners and taxpayers.”
Scottish pensioners have already begun receiving their devolved alternative via Pension Age Winter Heating Payments.
These payments range from £101 to £305 and are distributed automatically by Social Security Scotland.
Mr Bell added: “To help with ongoing cost of living pressures, the government will remove around £150 on average off household energy bills across Great Britain from April 2026. By ending the Energy Company Obligation, we are taking some of the expensive legacy levies off bills.
“We are expanding the Warm Home Discount to around an additional 2.7 million households. This means that from this winter, around 6 million low-income households will receive the £150 support to help with their energy bill costs. The Warm Home Discount regulations expire in 2026, and we will want to consider all options for future bill support beyond this point.”
He went on to say that the UK Government is also backing low-income households in England via the Warm Homes Plan, which will “support investment in insulation and low carbon heating – upgrading millions of homes over this Parliament”.
He continued: “At the recent Budget, we announced £1.5 billion in new funding to support households facing fuel poverty.”
Pension Credit
The DWP has recently verified that almost 78 per cent of fresh Pension Credit applications are handled – from the original submission through to the award decision letter – within the 50 working day target (10 weeks). This indicates that elderly people on low incomes submitting new applications this month could see their initial payment and any backdated amounts by mid-February.
Pension Credit remains the most under-utilised benefit and is designed specifically to offer extra financial assistance for elderly individuals on limited incomes – whether single or in couples.
Close to 1.4 million older residents throughout Great Britain, encompassing over 125,000 in Scotland, are presently claiming the means-tested benefit that could deliver an average of £4,300 in additional support over the coming months.
Certain elderly individuals believe that having savings or owning property would disqualify them from the means-tested benefit, which can also grant access to assistance with accommodation expenses, energy bills and Council Tax.
An entitlement of merely £1 weekly is sufficient to access additional support. Here’s a quick guide to the benefit, including who should check their eligibility, how to do it, potential amounts you could receive and where to find help with the application process.
Who can claim Pension Credit?
Pension Credit comes in two forms – Guarantee Credit and Savings Credit.
To be eligible for Guarantee Pension Credit, you must have reached State Pension age (currently 66). Your weekly income needs to fall below the minimum amount the UK Government deems necessary for living.
This stands at £227.10 for single individuals and £346.60 for couples – these figures may be higher if you’re disabled, a carer or have specific housing costs.
You can only qualify for Savings Credit if:
- You reached State Pension age before April 6, 2016, or you have a partner who reached State Pension age before this date and was already receiving it
- You have qualifying income of at least £198.27 a week for a single person and £314.34 a week for a couple
How much could you receive from DWP?
Guarantee Credit boosts your weekly income to:
- £227.10 for a single person
- £346.60 for a couple (married, in a civil partnership or cohabiting)
Additional amounts may be available if you’re disabled, a carer, or have certain housing costs.
Savings Credit can provide up to:
- £17.30 a week for a single person
- £19.36 a week for a couple (married, in a civil partnership or cohabiting)
The exact sum you’ll receive hinges on your income and savings. This includes assumed income from savings and capital over £10,000.
How to check eligibility for Pension Credit
Older individuals, or their friends and family, can swiftly verify their eligibility and get an estimate of potential benefits using the online Pension Credit calculator on GOV.UK here.
Alternatively, pensioners can ring the Pension Credit helpline directly to lodge a claim on 0800 99 1234 – lines are open from 8am to 6pm, Monday to Friday.
Expert assistance and advice is also accessible from:
You can find more information on how to claim Pension Credit on the GOV.UK website here.
Additional Support with Pension Credit
If you’re eligible for Pension Credit, you may also qualify for other forms of assistance, such as:
- Housing Benefit if you rent the property you live in
- Support for Mortgage Interest if you own the property you live in
- Council Tax discount
- Free TV licence if you are aged 75 or over
- Help with NHS dental treatment, glasses and transport costs for hospital appointments
- Help with your heating costs through the Warm Home Discount Scheme
- A discount on the Royal Mail redirection service if you are moving house
Changes for Mixed Age Older Couples and Pension Credit
In May 2019, legislation was altered so that ‘mixed age couples’ – where one partner is of State Pension age and the other isn’t – are now classified as a ‘working age’ couple when assessing entitlement to means-tested benefits.
This implies they can’t claim Pension Credit or pension age Housing Benefit until both partners reach State Pension age. Prior to this DWP amendment, a mixed age couple could be eligible to claim the more generous State Pension age benefits when just one of them reached State Pension age.
How to Use the Pension Credit Calculator
To utilise the calculator on the GOV.UK site, you’ll need details of:.
- Your earnings, benefits, and pensions
- Your savings and investments
If you have a partner, you’ll need their details too. You will then be asked a series of multiple-choice questions.
This includes:
- Your date of birth
- Your residential status
- Where in the UK you live
- Whether you are registered blind
- Which benefits you currently receive
- How much you receive each week for any benefits you get
- Whether someone is paid Carer’s Allowance to look after you
- How much you get each week from pensions – State Pension, private and work pensions
- Any employment earnings
- Any savings, investments or bonds you have
Once you’ve answered these queries, a summary screen will display your responses, allowing you to go back and amend any answers before submitting. The Pension Credit calculator will then show how much benefit you could receive each week.
All that’s left to do is follow the link to the application page to discover exactly what you’ll receive from the DWP, including access to other financial support.
There’s also the option to print off your responses from the calculator tool, which can speed up the application process by eliminating the need to dig out the same details again. Give the Pension Credit Calculator a go for yourself or a family member to ensure you’re claiming all the financial support you’re entitled to.
Who cannot use the Pension Credit calculator?
The calculator is not suitable if you or your partner:
- Are deferring your State Pension
- Own more than one property
- Are self employed
- Have housing costs (such as service charges or Crown Tenant rent) that are neither mortgage repayments nor rent covered by Housing Benefit.
How to make a claim
You can initiate your application up to four months prior to reaching State Pension age. You can claim any time after you reach State Pension age but your claim can only be backdated for three months.
This means you could receive up to three months of Pension Credit in your first payment if you were eligible during that period.
You will need:
- Your National Insurance number
- Details about your income, savings and investments
- Your bank account details, if you’re applying by phone or by post
If you’re backdating your claim, you’ll need information about your income, savings and investments on the date you want your claim to commence.
Apply online
You can utilise the online service if:
- You have already claimed your State Pension
- There are no children or young people included in your claim
To verify your entitlement, ring the Pension Credit helpline on 0800 99 1234 or utilise the GOV.UK Pension Credit calculator here to ascertain how much you could receive.
