The Department for Work and Pensions (DWP) is urging state pensioners to apply for Pension Credit, a valuable benefit worth up to £4,300 per year, ahead of upcoming payments scheduled before the end of July. Despite its significant support, Pension Credit remains one of the most underclaimed benefits in the UK, with approximately 760,000 eligible pensioners yet to claim.
Pension Credit not only boosts the income of eligible pensioners but also unlocks access to additional benefits, such as a free TV licence from the BBC. According to recent DWP data, 78% of new applications are processed within the target timeframe of 50 working days (about 10 weeks). This means that pensioners submitting claims this week can expect payments by late July or early August.
Pension Credit consists of two parts: Guarantee Credit and Savings Credit. Guarantee Credit guarantees a minimum income level, topped up by the government, helping those with lower incomes. The standard weekly rates for the 2026/27 financial year are £238 for a single pensioner and £363.25 for a couple. Additional amounts may be added depending on individual circumstances, such as disability or caring responsibilities.
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The Savings Credit, which provides an extra payment for pensioners who saved towards their retirement, is being phased out and is only available to those who reached State Pension age before 6 April 2016.
Additional top-ups include the Carer Addition, worth £48.15 per week, for those entitled to Carer’s Allowance or Carer Support Payment in Scotland. A Severe Disability Addition of £86.05 per week (or £172.10 for qualifying couples) may also be available.
Pensioners should apply promptly to secure these payments and any extra benefits they may be entitled to, helping improve financial security during retirement.