In an effort to provide financial support to older couples, the Department for Work and Pensions (DWP) has confirmed that a new Pension Credit amount of £346.60 per week will be available for eligible couples starting April 2025.
This announcement has raised many questions about eligibility and how to apply, so it’s important to understand who qualifies and how you can benefit from this increase.
What is Pension Credit?
Pension Credit is a benefit offered by the UK government to help people over the State Pension age who have a low income. There are two parts to Pension Credit:
- Guaranteed Credit: A top-up to ensure that your income reaches a minimum level.
- Savings Credit: An extra payment for people who have saved some money towards their retirement.
The £346.60 weekly amount is part of the Guaranteed Credit for couples, meaning it’s designed to ensure that couples who are over State Pension age and have low income will have a minimum weekly income of £346.60.
How Much Is This New Payment?
From April 2025, couples who qualify will receive £346.60 per week under the Guaranteed Credit. This represents a substantial increase in support for couples who might otherwise struggle to meet basic living expenses.
The increase in Pension Credit is designed to help those who are particularly vulnerable in retirement, offering a safety net to ensure they can cover the costs of everyday life, including food, utilities, and other essential expenses.
Who Is Eligible for the £346.60 Pension Credit?
To qualify for the £346.60 weekly Pension Credit in April 2025, couples must meet certain eligibility criteria. Here are the key requirements:
- Both Partners Must Be Over State Pension Age: You must be over the State Pension age, which is currently 66 but may rise depending on your birthdate.
- Low Income: Couples must have an income below a certain threshold. This includes income from pensions, savings, and any other sources of income. The Pension Credit is designed for couples whose income is not enough to meet their living costs.
- Savings and Capital: While Pension Credit is meant for those with low income, it’s important to note that there are limits on savings and capital. If you and your partner have savings over £16,000, you will not be eligible for Pension Credit. If you have savings between £6,000 and £16,000, your savings will affect the amount of Pension Credit you can receive.
- Living in England, Wales, or Northern Ireland: To apply for Pension Credit, you must be living in one of these regions of the UK. Different rules may apply in Scotland, which has a separate system of benefits.
How to Apply for the £346.60 Pension Credit
If you believe you are eligible for the new Pension Credit, you can apply through the DWP’s website or by phone. Here’s how you can apply:
- Check Your Eligibility: Use the DWP’s online calculator to check if you’re eligible for Pension Credit. The eligibility criteria take into account your income, savings, and other personal circumstances.
- Prepare Your Documents: You will need to provide documentation about your income, savings, and any other relevant financial information. This includes details of your pension, bank accounts, or investments.
- Submit Your Application: You can apply online, by phone, or by post. If you are eligible, the DWP will calculate how much Pension Credit you are entitled to.
- Wait for Confirmation: After you submit your application, the DWP will process it and let you know whether you qualify for Pension Credit, as well as the amount you will receive. This process can take several weeks, so be sure to apply well in advance of April 2025.
Why Is This Change Important?
The increase to £346.60 per week for couples in 2025 is a significant step towards addressing the financial struggles that many older people face. With the rising cost of living, especially for essentials like heating and food, this extra support can help to reduce financial stress for those who are already facing challenges in retirement.
This increase also highlights the UK government’s continued focus on tackling pensioner poverty. By ensuring that couples on low incomes are not left behind, this program provides essential support for maintaining a decent quality of life.
If you’re a couple who meets the eligibility criteria, the £346.60 weekly Pension Credit in April 2025 could make a significant difference in your financial well-being. Make sure to check your eligibility and prepare your application ahead of time to ensure you don’t miss out on this vital financial support.
With pensioner poverty still a concern for many, this increase in Pension Credit is a welcome boost to help ensure that older couples can live comfortably in their later years. Keep an eye on the official DWP website for any updates on how to apply and when to submit your application for this important benefit.
