Let's talk about Pension Credits

2026-07-31

We'd like to explore Pension Credit, which is one of the more under-claimed benefits, with you all.

What is it? Well, Pension Credit is a tax-free, means-tested benefit in the UK designed to help retirees on low incomes with their living costs. 

Separate from the State Pension, it tops up your weekly income to a guaranteed minimum level and can unlock access to numerous other helpful concessions.

Eligibility

You must live in England, Scotland or Wales and have reached State Pension age to qualify for Pension Credit. So, as you’re a Freebridge customer, you are already halfway there.

If you have a partner

You must include your partner on your application for Pension Credit.

A partner is either:

  • your husband, wife or civil partner - if you live with them

  • someone you live with as a couple, without being married or in a civil partnership

You’ll be eligible if either:

  • you and your partner have both reached State Pension age

  • one of you is getting Housing Benefit for people over State Pension age

Your income

When you apply for Pension Credit your income is calculated. If you have a partner, your income is calculated together.

Pension Credit tops up:

  • your weekly income to £238 if you’re single

  • your joint weekly income to £363.25 if you have a partner

If your income is higher, you might still be eligible for Pension Credit if you have a disability, you care for someone, you have savings or you have 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

  • Child Benefit

  • Christmas Bonus

  • Council Tax Reduction

  • Disability Living Allowance

  • Housing Benefit

  • Pension Age Disability Payment

  • Personal Independence Payment

  • Scottish Adult Disability Living Allowance

  • social fund payments like Winter Fuel Payment

If you’ve deferred your pension

If you’re entitled to a personal or workplace pension and you have not claimed it yet, the amount you’d expect to get still counts as income.

If you’ve deferred your State Pension, the amount of State Pension you would get is counted as income.

You cannot build up extra amounts for deferring your State Pension if you or your partner are getting Pension Credit.

Your savings and investments

If you have £10,000 or less in savings and investments this will not affect your Pension Credit.

If you have more than £10,000, every £500 over £10,000 counts as £1 income a week. For example, if you have £11,000 in savings, this counts as £2 income a week.

Please call us on 0333 240 4444 if you have any questions.

You can also reach out to Norfolk Citizen’s Advice here.

 

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