Advice for pensioners thinking of making a Pension Credit claim, including homeowners on a low income who may still be eligible
Pension Credit is a means-tested benefit intended to assist older people on lower incomes by supplementing their weekly earnings and opening the door to further financial support. However, charities and welfare advisers have repeatedly cautioned that a significant number of pensioners fail to claim because they wrongly assume homeowners are ineligible.
Guidance published on GOV.UK confirms that individuals can still qualify for Pension Credit if they own their property, hold savings or receive a State Pension. An award of as little as £1 per week is sufficient to unlock assistance with housing costs, heating bills and Council Tax.
The DWP recently confirmed nearly 78 per cent of all new claims for Pension Credit are processed – from initial application to award decision letter – within the target timeframe of 50 working days (10 weeks). This means older people on a low income making a new claim this month, could receive their first payment and any arrears by August.
Married pensioners with a combined weekly income of less than £363.25 per week, or single pensioners with an income of below £238.00 could be eligible for Pension Credit, reports the Daily Record.
For 2026/27, Pension Credit tops income up to £238.00 a week for single people and £363.25 a week for couples. Some people may receive more depending on their circumstances, including disability, caring responsibilities or housing costs.
What counts as income
Your income includes:
- State Pension
- other pensions
- earnings from employment and self-employment
- most social security benefits – for example, Carer’s Allowance
What does not count as income
Not all benefits are counted as income. For example, the following are not counted:
- Adult Disability Payment
- Attendance Allowance
- DWP Christmas Bonus
- Child Benefit
- Disability Living Allowance
- Pension Age Disability Payment
- Personal Independence Payment
- social fund payments like Winter Fuel Allowance
- Housing Benefit
- Council Tax Reduction
Savings don’t automatically disqualify someone from claiming Pension Credit, though they can influence the amount received. Based on GOV.UK guidance, savings exceeding £10,000 are considered when determining entitlement.
For those with more than £10,000, every £500 above this threshold is treated as £1 weekly income. For instance, someone with £11,000 in savings would have this counted as £2 income per week.

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