Pension credit rates to rise from April 2022

Pension Credit rates will rise from April 2022, with guarantee credit increasing to £182.60 a week for a single person and £278.70 a week for a couple, according to figures published by the government and reported by Which?¹. The same report states that savings credit will rise to £14.48 a week for a single person and £16.20 a week for married couples and civil partners¹.

The increases follow the 2021/22 rates, when guarantee credit stood at £177.10 for a single person and £270.30 for a couple, and savings credit at £14.04 and £15.71 respectively¹.

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Pension Credit has two parts. Guarantee credit tops up weekly income to a guaranteed level, and is available to people who have reached state pension age, currently 66 for both men and women¹. Savings credit is only open to people who reached state pension age before 6 April 2016; those who reached it on or after that date can still get guarantee credit¹. To qualify for savings credit, a single person needs a minimum income of £153.70 a week, or £244.12 a week for a couple¹.

Separate figures from the Department for Work and Pensions, reported on 6 March 2022, show that £1.7 billion of Pension Credit went unclaimed in the 2019/20 financial year, with as many as 850,000 families missing out on an average of £1,900 a year¹. The DWP said 66% of those entitled claimed, with take-up at 73% for guarantee credit and 43% for savings credit¹. The estimated average weekly amount unclaimed was £57 for guarantee credit and £6 for savings credit¹.

Why it matters for households

The new rates apply from April 2022 to people already receiving Pension Credit and to those who become eligible. Because guarantee credit tops up income to a set level, the weekly amount a household receives depends on its other income, so the headline figures are the maximum guaranteed levels rather than flat payments¹.

Pension Credit also acts as a gateway to other support, including cold weather payments, help with NHS costs such as prescriptions, dental treatment, glasses and hospital transport, a TV licence for those aged 75 and over, housing benefit for renters, support for mortgage interest, and council tax support, the amount of which depends on local council criteria¹. The unclaimed figures suggest a substantial number of eligible households were not receiving the benefit and the linked support in 2019/20¹.

Couples are only eligible for guarantee credit once both partners have reached state pension age; if a couple is not eligible, both can apply for Universal Credit instead¹. Couples already receiving Pension Credit before 15 May 2019 can continue to claim regardless of the partner's age¹. Carers, people with severe disabilities and those with certain housing costs may qualify for a higher level of guarantee credit¹.

What happens next

Applications can be started up to four months before eligibility, and applications made after reaching state pension age can be backdated by three months¹. Claims can be made online, by post or by phone on 0800 99 1234, between 8am and 6pm Monday to Friday¹. A government calculator is available to estimate entitlement¹.