Thousands of older pensioner couples across Britain could be missing out on more than £1,045.20 a year in extra support from the Department for Work and Pensions (DWP) because of a little-known Pension Credit rule linked to retirement savings.
The support comes through a part of Pension Credit called Savings Credit — a benefit many retirees have never even heard of, despite it still being available to certain older pensioners who reached State Pension age before April 2016.
For eligible couples, the extra payment can be worth up to £20.10 a week, adding up to around £1,045.20 a year. Single pensioners could receive up to £17.96 weekly, or roughly £933 annually.
And unlike some other benefits, people may still qualify even if they are not entitled to the main Guarantee Credit part of Pension Credit.
What Is Savings Credit?
Savings Credit was introduced to reward older people who saved towards retirement through pensions or other income sources.
It forms part of Pension Credit but operates differently from the more widely known Guarantee Credit system.
The benefit mainly applies to pensioners who:
- Reached State Pension age before 6 April 2016
- Have some income from retirement savings or pensions
According to the DWP, qualifying income may include:
- Personal pensions
- Workplace pensions
- Savings income
- Earnings from work
- Rental income
Official guidance is available through GOV.UK:
https://www.gov.uk/pension-credit
How Much Could Pensioners Receive?
The amount paid depends on household income and personal circumstances.
Here’s the current maximum weekly support available:
| Household Type | Maximum Savings Credit |
|---|---|
| Single pensioner | £17.96 per week |
| Couple | £20.10 per week |
Over a full year, that works out at:
| Household Type | Approximate Annual Amount |
|---|---|
| Single pensioner | £933.92 |
| Couple | £1,045.20 |
For many pensioners on tight fixed incomes, that extra money can help cover essentials such as heating bills, food costs or council tax.
How the Savings Credit Calculation Works
The rules behind Savings Credit are a bit more complicated than standard benefits, which is partly why many people do not realise they may qualify.
For couples, the DWP currently looks at weekly income above £329.75.
For every £1 of qualifying income above that level, pensioners may receive an extra 60p in Savings Credit, up to the maximum amount.
However, once income rises beyond certain limits, the award starts reducing by 40p for every additional £1 earned.
In practice, that means the benefit is targeted mainly at lower and modest-income pensioners who built up some retirement savings but are not considered wealthy.
Martin Lewis’ MSE Highlights “Little-Known” Support
Money Saving Expert (MSE), founded by financial campaigner Martin Lewis, has repeatedly highlighted how many older pensioners miss out on Savings Credit because they assume Pension Credit only applies to the very poorest households.
MSE explains:
“If you hit State Pension age before April 2016 (so you’re roughly aged 73+) you may be due a top-up if you have savings, even if you’re not due Guarantee Credit.”
The site also points out that the name “Savings Credit” can be misleading because eligibility is not based purely on how much money someone has in the bank.
Instead, it focuses largely on income generated from savings and pensions.
“The idea is: the more you saved up, the more income you’ll be getting from those savings,” MSE says.
Why Many Pensioners Miss Out
Benefit experts have long warned that Pension Credit remains one of the most underclaimed benefits in Britain.
Part of the problem is confusion around eligibility rules — especially for Savings Credit.
Many pensioners wrongly assume:
- Having savings automatically disqualifies them
- Owning a home prevents eligibility
- Small private pensions remove entitlement
- Pension Credit only exists for people with no income
In reality, some older pensioners with modest workplace pensions or savings income may still qualify for extra support.
The DWP has encouraged retirees to check eligibility even if they think they may not qualify.
The Pension Credit calculator is available here:
https://www.gov.uk/pension-credit-calculator
Savings Credit Is Only Available to Older Pensioners
One important restriction is age.
Savings Credit closed to most new pensioners after the introduction of the new State Pension system in April 2016.
That means only people who reached State Pension age before 6 April 2016 can still qualify.
In practical terms, most eligible claimants today are now roughly aged 73 or older.
The State Pension system changed significantly in 2016, replacing the older basic and additional pension structure with the current new State Pension model.
Pension Credit Can Unlock Other Support Too
Even relatively small Pension Credit awards can open the door to additional help.
Depending on circumstances, successful claimants may also qualify for:
- Council Tax reductions
- Free TV licences for over-75s
- Housing support
- Cold Weather Payments
- NHS help with glasses and dental treatment
That’s why charities and financial advisers often encourage pensioners to apply even if they think their entitlement may only be small.
Additional Pension Credit information is available at:
https://www.gov.uk/pension-credit/what-youll-get
Claims that all pensioners can receive Savings Credit are incorrect.
The benefit is only available to people who reached State Pension age before 6 April 2016 and who meet specific income and savings-related criteria set by the DWP.
Most younger pensioners under the new State Pension system cannot newly qualify for Savings Credit.
FAQs
Q1. What is Savings Credit?
Savings Credit is part of Pension Credit designed to reward older pensioners who saved towards retirement through pensions or other income.
Q2. Who can claim Savings Credit?
Only people who reached State Pension age before 6 April 2016 may qualify.
Q3. How much is Savings Credit worth?
Eligible single pensioners may receive up to £17.96 weekly, while couples could receive up to £20.10 per week.
Q4. Can you get Savings Credit without Guarantee Credit?
Yes. Some people may qualify for Savings Credit even if they do not receive Guarantee Credit.
Q5. Does having savings stop you claiming?
Not necessarily. Savings and pension income may still allow eligibility depending on overall circumstances.
