The government has announced that the standard minimum guarantee for pension credit will rise by 8.5% in the 2024/2025 tax year which starts on the 6 April 2024.
For individuals who are making a single claim the pension credit will be valued at £218.15 per week from £201.05 in the 23/24 tax year.
If you are making a joint claim the pension credit will amount to £332.95 for both individuals which is an increase from £306.85 in the previous tax year.
That’s a minimum increase in pension credit of £17.10 and £26.10 respectively with further increases if you are entitled to an additional amount due to circumstances like being a carer.
If you reached state pension age prior to 6 April 2016, there is a possibility for you to receive an additional amount known as ‘savings credit’.
In the 2022/2023 tax year savings credit amounts to £15.94 per week, or £17.84 if you have a partner. Starting from April 2024 these figures will increase by 6.7 percent to £17.01 or £19.04 respectively.
The bump up in payment is done automatically so you don’t need to contact the pension service to claim the 2024/2025 increase.
Pension and savings credit figures for the 2024/2025 tax year
In the autumn 2023 statement the government confirmed that a number of benefits and credits were being increased from April 2024 including the pension credit and savings credit as follows:
Standard minimum guarantee pension credit:
- Single £218.15 up from £201.05.
- Couple £332.95 up from £306.85.
Additional amount for severe disability:
- Single £81.50 up from £76.40.
- Couple (one qualifies) £81.50 up from £76.40.
- Couple (both qualify) £163.00 up from £152.80.
Additional amount for carers: £45.60 up from £42.75.
Savings credit threshold:
- Single threshold £189.80 up from £174.49.
- Couple threshold £301.22 up from £277.12.
- Single maximum £17.01 up from £15.94.
- Couple maximum £19.04 up from £17.84.
Not claiming Pension Credit yet?
The pension credit is a benefit for some individuals and couples who are of state pension age with a lower income.
It’s an additional weekly payment to help cover living costs paid by the DWP and is free from income tax.
Pension credit and state pension are distinct from each other letting you receive both benefits simultaneously.
The average annual pension credit award is worth £3500 which is a valuable sum of money especially with the cost of living going up substantially over the last few years.
In the summer of 2023 the DWP joined up with the media and charities to put the message out about pension credit because too many pensioners aren’t claiming it.
Caroline Abrahams, Charity Director at Age UK, said:
Pension Credit can make a big difference if you’ve reached State Pension Age and haven’t got much money coming in. With prices rising rapidly at the moment it’s more important than ever to claim what’s rightfully yours. We urge any older person who thinks they may be eligible to put in a claim and Age UK is here to provide advice and practical support to help you with the process.
If you qualify for pension credit you can be eligible for other types of benefit to help cover a variety of living expenses like dental treatment and the warm home grant.
You can make use of the online pension credit calculator to evaluate your and your partners eligibility in most cases.
How do I claim or make a Pension Credit enquiry?
To begin your application for pension credit you have a few options available. One way is to apply for pension credit online via the official GOV.UK website.
Alternatively you can opt to claim pension credit by making a phone call to the pension service claim helpline on 0800 99 1234.
If you prefer to apply by post you can download and complete the pension credit claim form or you call the claim line number and request a form to be sent to your address.
The completed form should be mailed to the following address:
The Pension Service 8 Post Handling Site B Wolverhampton WV99 1AN
During the application process you will be required to provide the following information for yourself and your partner if you have one:
- Your national insurance number.
- Details of your bank or building society.
- Documentation relating to your PAYE and/or self employed income, savings, and any investments.
You can initiate your application up to four months in advance and for successful claims you can retroactively backdate them for up to three months.
For general pension credit enquiries you can call the pension credit helpline on 0800 731 0469 (textphone 0800 731 0464).
