About 880,000 people are not claiming Pension Credit despite being eligible, missing out on an average £3,900 a year.

The benefit tops up pension income to help those on low incomes pay for living costs. It also gives access to free dental and optical treatment, a free TV licence and free council tax, as well as other benefits such as Housing Benefit.

This year the Pension Credit will also see pensioners hold onto the Winter Fuel Payment that has been axed for millions of older people.

Following a major policy reinstatement in August 2025, approximately nine million pensioners in England and Wales will now receive the Winter Fuel Payment this winter. Chancellor Rachel Reeves announced that all pensioners with an annual income of £35,000 or less are now eligible for the payment (worth between £100 and £300). While this extends support far beyond the 1.5 million on Pension Credit, any recipient with an income exceeding the £35,000 'cliff-edge' threshold will have the payment clawed back in full through the tax system.

The reduction of the payment from 11.4 million people to 1.5 million will save the Treasury £1.4bn this year.

While the policy U-turn has provided relief for millions, energy costs remain high. As of January 2026, the Ofgem energy price cap is set at £1,758 per year for a typical household. This sustained high cost of energy continues to put pressure on older people, though the broader eligibility for the Winter Fuel Payment for those on lower and middle incomes aims to mitigate the risk of pensioners being forced to choose between heating and essentials.

Read more: Average Cost of Electricity per kWh in the UK

Pension Credit eligibility

Many pensioners do not receive Pension Credit because they don't think they're eligible when in fact they are.

Pensioners aged 66 or over may be entitled to Pension Credit if their weekly income is below the 2025/26 Guarantee Credit thresholds: £227.10 for a single person or £346.60 for a couple. These rates were increased in April 2025 in line with the 4.1% rise in the State Pension, ensuring that those with the lowest incomes receive a vital top-up that also guarantees eligibility for the Winter Fuel Payment without tax clawbacks.

Income includes the State Pension, other pensions, earnings from work, a number of social security benefits (you can find the list of benefits that are and aren't included here)

The benefit tops up income to those levels set out above but even if you have income higher than this level, you could still claim benefits if:

• You're a carer

• You have a severe disability

• You have savings

• You have housing costs

• You're responsible for a child or young person who lives with you.

You can check if you're eligible for Pension Credit using the Government's calculator.

Pension Credit apply

Pensioners can apply for Pension Credit at any time, from four months before they reach State Pension age. But to access the Winter Fuel Payment automatically and avoid potential tax recovery, new applications for Pension Credit should ideally be made by December 2025. This is the estimated deadline to make a backdated claim that covers the 2025 'qualifying week' (September 15–21, 2025). However, even if you do not claim Pension Credit, you will still receive the payment automatically this year if your income is £35,000 or less.

That is the last date to be able to make a backdated claim for Pension Credit and then receive the Winter Fuel Payment.

To apply for Pension Credit you can either fill in details on the Government website here, or call 0800 99 1234.

You can also print out and post a claim form which is also available online here.

How Winter Fuel Payment income recovery works

Under the 2025 rules, most pensioners receive the Winter Fuel Payment automatically. However, for those with a total taxable income over £35,000, HMRC will recover the payment through the tax system. For the majority of taxpayers, this 'clawback' will happen via a tax code adjustment in the 2026/27 financial year, resulting in slightly higher monthly tax deductions starting in April 2026. If you file a Self Assessment tax return, you will instead declare and repay the payment as part of your 2025/26 tax bill due by January 2027.

Read more:

• The State Pension amount that could mean you’re being underpaid

• What to do if you’re struggling to pay your energy bills

• DWP to boost state pension by £666 for rest of your life if Brits 'defer' payments - how it works

• More than £50bn in pensions at risk of being lost - how to track your pension