Pension Credit rates are going up from next month – here’s everything you need to know about the benefit and a full list of rate increases
DWP benefits are set to rise from next month, including Pension Credit. Every year rates go up in line with the rate of inflation from the previous September – in September 2024 this was confirmed as being 1.7%, according to the consumer price index.
Pension Credit is paid to people over the State Pension age who are on a low income and need extra money to help with living costs.
The means tested benefit can also help with housing costs, such as ground rent or service charges.
Recipients might also get extra help if they’re a carer, severely disabled, or responsible for a child or young person.
The increases to benefits come as the government is set to announce major welfare cuts today, Tuesday, March 18, potentially changing the eligibility criteria for major benefits such as Personal Independent Payment.
Those who get Pension Credit might also receive other help, such as: housing benefit if you rent the property you live in, the winter Fuel Payment, support for Mortgage Interest if you own the property you live in, a Council Tax discount, a free TV licence if you’re aged 75 or over, help with your heating costs through the Warm Home Discount Scheme as well as others.
Pension Credit is separate from your State Pension, and you can get Pension Credit even if you have other income, savings or own your own home.
Whilst most benefits rise in line with inflation, State Pension increases by whichever is highest out of inflation, wages based on average growth between May and July, or 2.5% – know as the triple lock promise.
This year it will rise by 4.1% in line with average earnings growth. Other benefits set to increase include Universal Credit, Child Benefits, and Disability Living Allowance. A full list of DWP benefits going up in April, and by how much, can be found here.
Full list of Pension Credit rates increasing and by how much:
Pension Credit tops up the income of people over state pension age. Recipients can also access other things, such as as council tax discounts and free TV licences for over-75s. There are also additional elements available if you’re a carer, you’re disabled, you look after children, or if you have savings and reached state pension age before April 2016.
Standard minimum guarantee
- Single: The maximum amount a single person may be able to claim is increasing from £218.15 a week to £227.10 a week.
- Couple: The maximum amount a couple will be able to claim is going by from £332.95 a week to £346.60 a week.
Extra amounts
Top up and extra amounts given for other responsibilities and costs, known as ‘Guarantee Credit’, include:
- If you have a severe disability, you could get an extra £81.50 a week
- If you care for another adult you could get an extra £45.60 a week
- If you’re responsible for children or young people you could get an extra £66.29 a week for each child or young person you’re responsible for. This is increased to £76.79 a week for the first child if they were born before 6 April 2017.
- If the child or young person is disabled you could also get an extra amount of either: £35.93 a week if they get DLA, PIP or ADP, or £112.21 a week if they’re blind or they get the highest rate care component of DLA or CDP, or the enhanced daily living component of PIP or ADP
- If you have savings or a second pension you could get the ‘Savings Credit’ part of Pension Credit. To be eligible you must have reached State Pension age before 6 April 2016 and have saved some money for retirement, for example in a personal or workplace pension. You’ll get up to £17.01 Savings Credit a week if you’re single and, if you have a partner, you’ll get up to £19.04 a week.
