The government offers a range of support towards pensioners, with recent measures made to help cover the cost of energy bills.

Many are already aware of the support systems available including the Winter Fuel Payments and the Cost of Living Payments.

However, there is one measure that many are now aware of that could help them in terms of finance.

Pension Credits are often forgotten about, as the Money Saving Expert website states that nearly 880,000 eligible households don't claim them.  

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What is a Pension Credit?

Created to help retired people on low incomes, it is there to help those on state pensions top up their household budgets.

The credit is built on two parts, with some only eligible for one of the two.

The first is the Guarantee credit which is the main part of the pension credit and gives you a top-up of your weekly income to a minimum guaranteed level. 

As Money Saving Expert (MSE) states: "If you're retired and have income less than £218 a week as an individual, or £332 a week as a couple, you may be due £1,000s a year in Pension Credit. Plus, it then entitles you to a whole raft of other benefits."

They added: "For 2024/25, this is £218.15 a week if you're single, and £332.95 a week if you're in a couple."

The second part is the Savings Credit, which is for "those who reached state pension age before April 2016, there's an extra boost available if you've made provision for your retirement via savings, work or a private pension" according to MSE.

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Who qualifies for Pension credit?

Over three million households qualify, but an estimated 880,000 do not claim. 

To qualify for pension credit you must: 

  • Live in the UK
  • Reach state pension age
  • If you're a couple and have both reached pension age (you do not need to be married or in a civil partnership, and just need to live together)

You can also get savings credit if you cover the criteria

  • Have reached 65 if a man and 63 if a woman before April 6, 2016
  • Have been awarded savings credit before April 6, 2016
  • Remained entitled to savings credit at all times since April 6, 2016

You can find out more information on the government website.