The Department for Work and Pensions (DWP) has rolled out new rules for Pension Credit in 2025, and they could affect thousands of UK pensioners. This benefit is a lifeline for older people on low incomes, topping up weekly earnings to help cover daily costs. With living expenses like energy bills and food prices still high, Pension Credit remains a vital support. But changes to eligibility thresholds and home ownership rules mean some pensioners might need to double-check if they qualify. Here’s what you need to know to make sure you’re not missing out.
What Is Pension Credit and Why It Matters
Pension Credit is extra money for pensioners aged 66 or over who live in the UK and have low income. It comes in two parts: Guarantee Credit, which boosts your weekly income to a minimum level (£218.15 for singles, £332.95 for couples in 2025), and Savings Credit, for those who reached pension age before April 2016 and have some savings. This benefit can also unlock other perks, like help with council tax, heating bills, or a free TV licence for those aged 75 and over. With around £23 billion in benefits unclaimed each year, checking eligibility is more important than ever.
New Thresholds and How They Affect You
In 2025, the DWP has tweaked the rules, especially around savings and income. If your savings are over £10,000, every £500 above that counts as £1 of weekly income, which could reduce your Pension Credit. The good news? Owning a home or having savings doesn’t automatically rule you out. However, new banking rules mean your bank account must pass stricter checks to ensure payments are secure. You’ll also need to report changes like moving abroad for over four weeks, as this could pause benefits like Pension Credit. Keeping your details up to date with the DWP is key to avoiding payment hiccups.
Home Ownership Changes to Watch
A big shift in 2025 is how the DWP looks at home ownership. In the past, your home’s value didn’t usually count when applying for Pension Credit. Now, if you own a property with high equity (the value minus any mortgage), it might affect your eligibility. The DWP is introducing “property equity consideration” to focus benefits on those with fewer assets. Exact thresholds aren’t set yet, but pensioners in pricey areas like London could be hit harder than those in regions with lower house prices. If you’re worried, talking to a financial adviser or Age UK can help you plan.
How to Check If You Qualify
To see if you’re eligible, you’ll need to be over 66, live in the UK, and have a low income. Here’s a quick guide:
| Criteria | Details |
|---|---|
| Age | 66 or over |
| Residency | Live in the UK full-time |
| Income (weekly) | Below £218.15 (single) or £332.95 (couple) |
| Savings | Over £10,000 may reduce payments |
You can apply online at GOV.UK, call the Pension Credit helpline (0800 99 1234), or send a form by post. Claims take about 50 days to process, and you might get up to three months of backdated payments if eligible. If you’re already on Pension Credit, you don’t need to reapply for the £900 boost, paid in three £300 instalments in July, October, and December 2025.
Don’t Miss Out on Extra Support
With new rules tightening eligibility, it’s worth checking if you qualify for Pension Credit sooner rather than later. The £346 weekly maximum could make a huge difference, and it might open doors to other support like Winter Fuel Payments or housing cost help. If you’ve been turned down before, you can apply again, as circumstances change. Contact Age UK or the DWP for free advice, and make sure your bank details are up to date to avoid any payment delays. Act now to secure the financial help you’re entitled to in 2025.