Pension Credit will increase by 3.9% from April 2027 in line with average weekly earnings (Image: Getty)
Boosted Pension Credit rates from the Department for Work and Pensions (DWP) will come into effect from April under Andy Burnham’s Government.
Around 1.4 million low income pensioners will benefit from a 3.9% rise to payment rates in line with the increase in average weekly earnings, which will come into force in the 2027 to 2028 tax year. The uplift is the same as both the basic and new State Pension, which will rise in April in line with average wage growth – the highest figure out of the three triple lock factors this year.
Pension Credit provides people who have reached State Pension age and are on a low income with extra money to help with living costs, and it is paid separately from the State Pension.
In the current tax year, the benefit tops up your weekly income to £238 if you’re single, or your joint weekly to £363.25 if you have a partner. But from April, rates will be boosted by 3.9% taking weekly payments to £247.30 for single pensioners and up to £377.40 per week for couples.
For single pensioners, the uplift represents a weekly payment increase of up to £9.30, or £483.60 more per year if you’re entitled to the full amount. As for couples, the 3.9% rise adds up to £14.15 more to weekly payments, or a maximum of £735.80 extra per year.
When you apply for Pension Credit, your income is calculated and this takes into account your State Pension, other pensions, savings, earnings and any social security benefits you might get, so this can affect your eligibility, or reduce your payments.
Confirming the new rates from April, Pat McFadden, Secretary of State for Work and Pensions, said: “I am pleased to announce that the basic and full rate of the new State Pensions will be increased by 3.9%, in line with the increase in average weekly earnings in the year to May-July 2026.
“This delivers on our triple lock commitment throughout this Parliament to increase these rates in line with the highest of growth in prices, growth in earnings or 2.5%. From April, the full annual rate of the new State Pension will increase by around £490. The full annual rate of the basic State Pension will increase by around £375.
“The standard minimum guarantee in Pension Credit will also increase by 3.9% in line with the increase in average weekly earnings. From April, it will be £247.30 a week for a single pensioner and £377.40 a week for a couple, ensuring the incomes of the poorest pensioners are protected.”
According to the DWP, around 1.4 million pensioners households are already benefiting from Pension Credit and will get a 3.9% boost to payment rates from April, but hundreds of thousands of eligible pensioners may still be missing out on the vital support to help with everyday costs.
To boost take-up, the DWP last month began sending out letters to 660,000 households urging pensioners to check their Pension Credit eligibility and start claiming the benefit, which is currently worth more than £4,500 on average per year.
It also opens the door to a swathe of other financial perks and support, including a Council Tax discount, help with heating and energy costs, and a free TV licence if you’re over 75, so it’s well worth checking if you qualify.
Minister for Pensions Torsten Bell said: “Far too many pensioners are missing out on support they’re entitled to. Pension Credit is worth more than £4,500 a year on average and can make a real difference to people’s finances, while also opening the door to help with bills and other everyday costs.
“If you think you might be eligible, it’s worth checking. We want to make sure pensioners get the support they’re entitled to and don’t miss out on money that could help them in retirement.”
