Changes to Pensions Credit

Look out for a leaflet from the Government, says PAUL LEWIS

Paul Lewis

Published: November 9, 2026 at 12:31 PM

Are you getting too much or too little?

If you get pension credit on top of your state pension, the Department for Work and Pensions may send you a letter to check you’re getting the right amount. It’s writing to a reported 370,000 pensioners whom it thinks may be getting too much, in most cases because they have more savings than when they claimed.

Pension credit is a means-tested benefit for people over state pension age and tops up their income to at least £238 a week (single) or £363.25 for a couple. But if they have savings or other capital of more than £10,000, the amount they get is reduced by £1 a week for each £500 or part of £500 over the limit.

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The Department will not say how it chooses the people for this Pension Credit Claims Review. After receiving the letter, you may be called or asked to fill in a form to give details about savings and investments, and even asked to send copies of bank statements. If there is overpayment, the pension credit will be reduced. The Department is expecting to save around £370 million by reducing or even stopping the pension credit paid to about 100,000 pensioners whose circumstances have changed.

If this happens to you, get advice from a charity such as Independent Age (independentage.org.uk, 0800 319 6789) or Citizens Advice (citizensadvice.org.uk).

The Department has also told me that if benefit has been underpaid, it will increase it. That can happen if your capital is now less than it was when you first claimed the benefit. For example, if you had £15,100 in the bank when you claimed but after paying for essential roof repairs you have £9,500 left, then your pension credit should be boosted by £11 a week to the full amount. the full amount.

In October, the Department also began a new campaign to try to find some of the million older people it says are eligible for pension credit but don’t receive it. It’s posting leaflets through the doors of 660,000 households in seven parts of the UK, urging people to check if pensioners there or nearby who are entitled to an average of £86.50 a week extra.

Claim pension credit by calling 0800 99 1234 where a friendly person will talk you through the process. Independent Age or Citizens Advice can also help with claims.