The rules for Pension Credit in the 2026/27 financial year have been confirmed, clarifying that owning a home, having savings, or receiving a private pension does not automatically prevent eligibility. Pension Credit is a benefit designed for individuals who have reached State Pension age and have a low income.
For the 2026/27 financial year, the standard Guarantee Credit calculation aims to top up assessed weekly income to £238 for a single person or £363.25 for a couple. Savings and investments up to £10,000 do not impact Pension Credit eligibility. For amounts above £10,000, every £500, or part of £500, is treated as £1 of weekly income for benefit calculation purposes.
Private and workplace pensions typically count as income, but certain benefits like Attendance Allowance and Personal Independence Payment do not. Pension Credit can also help unlock access to other support, including Housing Benefit, Council Tax Reduction, a free TV licence for those aged 75 or over, and help with NHS costs for Guarantee Credit recipients.