Pension Credit (PC) is an income-related benefit designed to provide poorer pensioners in Great Britain (GB) with a minimum level of income to meet daily living costs by topping up other income to that level. Introduced in 2003, the standard weekly minimum of £218.15 for a single pensioner or £332.95 for a pensioner couple (2024-25 rates) can be increased by additional amounts for those with a severe disability, caring responsibilities, including responsibility for children or young persons, or certain housing costs other than rent (help with the costs of rent is provided separately, by Housing Benefit.)
- The income received from Pension Credit is separate from other benefits that cover housing costs (including council tax) and disability. Pensioners who receive Pension Credit could be eligible for other benefits as well. Pension Credit is a means-tested benefit.
- It is administered by the Department for Work and Pensions and is separate from the contributory State Pension. Pension Credit for pensioners in Northern Ireland is administered by the Department for Communities and is legally separate from Pension Credit in GB but mirrors the GB scheme.
- Pension Credit is not paid automatically but has to be claimed. Currently, there are approximately 1.4 million households in GB in receipt of Pension Credit. However up to an estimated 760,000 households who could be eligible were not claiming it (based on data for 2022-23, the latest available at time of writing). The latest estimates indicate that the take-up rate is 65%.
- 66% of the current GB caseload is made up by female claimants. 87% of all PC claimants are single.
- You can get Pension Credit even if you have other income, savings or own your own home.
Approximately 1.4 million households in receipt with up to an estimated 760,000 households not claiming the benefit but could be eligible.
The current (Feb 2024) average household award of Pension Credit is just over £3,900 pa.
For the financial year 2022/23, the AME spend on Pension Credit was £4.9 billion. For 2023/2024, the forecasted spend is £5.4 billion.
Central government. The rates of Pension Credit and its administration is the responsibility of the Department for Work and Pensions. Before coming into effect, the rates have to be approved by Parliament. Operates in England, Wales and Scotland. Northern Ireland administered by NI Department for Communities
The DWP’s internal systems capture information, as well as caseload statistics, which are published quarterly. Take-up estimates are published annually.
The implications of Government policy for future levels of pensioner poverty - After the introduction of Pension Credit in 2003, the numbers of pensioners in relative poverty fell from 24% to 21%, and continued to fall until 2005/06 when it reached 17% (1.8 million pensioners). Pensioner poverty increased between 2006 and 2008 to around 2 million, before decreasing again in 2009/10 to 1.8 million.
The cost of pensioner poverty and non-take-up of Pension Credit - Pension Credit would increase the percentage of median income for those eligible but not claiming by 22 percentage points among single women, 24 percentage points among men and by 16 percentage points among couple households, with a mean increase of 20 percentage points for all household types. This would take them up to or just above the 60% median income poverty line, on average.
- Up to an estimated 760,000 pensioner households in 2022-23 were entitled to Pension Credit but did not claim it. This is a take-up rate of 65%. In spite of a number of initiatives by successive Governments the overall take-up rate has remained at around that level in recent years.
- Recently, in an effort to increase the take-up rate, the DWP has been targeting pensioners in receipt of Housing Benefit but not Pension Credit and inviting them to make a claim.
Welfare Rights organisations and bodies like Age UK and Independent Age
SDG 1 - No poverty
- Target 1.1 - by 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 a day
- Indicator 1.1.1 - proportion of the population living below the international poverty line by sex, age, employment status and geographical location (urban/rural)
- Target 1.2 – by 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions
- Indicator 1.2.1 – proportion of population living below the national poverty line, by sex and age
- Indicator 1.2.2 – proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions
- Target 1.3 – implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable
- Indicator 1.3.1 – proportion of the population covered by social protection floors/systems, by sex, distinguishing children, unemployed persons, older persons, persons with disabilities, pregnant women, newborns, work-injury victims and the poor and the vulnerable
SDG 1 – No poverty
- Target 1.1 – by 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 a day
- Indicator 1.1.1 – proportion of the population living below the international poverty line by sex, age, employment status and geographical location (urban/rural)
- Target 1.2 – by 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions
- Indicator 1.2.1 – proportion of population living below the national poverty line, by sex and age
- Indicator 1.2.2 – proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions
- Target 1.3 – implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable
- Indicator 1.3.1 – proportion of the population covered by social protection floors/systems, by sex, distinguishing children, unemployed persons, older persons, persons with disabilities, pregnant women, newborns, work-injury victims and the poor and the vulnerable
Pension Credit (PC) is an income-related benefit designed to provide poorer pensioners in Great Britain (GB) with a minimum level of income to meet daily living costs by topping up other income to that level. Introduced in 2003, the standard weekly minimum of £218.15 for a single pensioner or £332.95 for a pensioner couple (2024-25 rates) can be increased by additional amounts for those with a severe disability, caring responsibilities, including responsibility for children or young persons, or certain housing costs other than rent (help with the costs of rent is provided separately, by Housing Benefit.)
- The income received from Pension Credit is separate from other benefits that cover housing costs (including council tax) and disability. Pensioners who receive Pension Credit could be eligible for other benefits as well. Pension Credit is a means-tested benefit.
- It is administered by the Department for Work and Pensions and is separate from the contributory State Pension. Pension Credit for pensioners in Northern Ireland is administered by the Department for Communities and is legally separate from Pension Credit in GB but mirrors the GB scheme.
- Pension Credit is not paid automatically but has to be claimed. Currently, there are approximately 1.4 million households in GB in receipt of Pension Credit. However up to an estimated 760,000 households who could be eligible were not claiming it (based on data for 2022-23, the latest available at time of writing). The latest estimates indicate that the take-up rate is 65%.
- 66% of the current GB caseload is made up by female claimants. 87% of all PC claimants are single.
- You can get Pension Credit even if you have other income, savings or own your own home.
- Up to an estimated 760,000 pensioner households in 2022-23 were entitled to Pension Credit but did not claim it. This is a take-up rate of 65%. In spite of a number of initiatives by successive Governments the overall take-up rate has remained at around that level in recent years.
- Recently, in an effort to increase the take-up rate, the DWP has been targeting pensioners in receipt of Housing Benefit but not Pension Credit and inviting them to make a claim.
Disability benefits; Child and family support/benefits
Welfare Rights organisations and bodies like Age UK and Independent Age
Central government. The rates of Pension Credit and its administration is the responsibility of the Department for Work and Pensions. Before coming into effect, the rates have to be approved by Parliament. Operates in England, Wales and Scotland. Northern Ireland administered by NI Department for Communities
Approximately 1.4 million households in receipt with up to an estimated 760,000 households not claiming the benefit but could be eligible.
The current (Feb 2024) average household award of Pension Credit is just over £3,900 pa.
For the financial year 2022/23, the AME spend on Pension Credit was £4.9 billion. For 2023/2024, the forecasted spend is £5.4 billion.
The DWP’s internal systems capture information, as well as caseload statistics, which are published quarterly. Take-up estimates are published annually.