Pension Credit Set to Increase in 2025 – What Will You Receive
Pension Credit will rise in 2025, providing crucial support for low-income seniors. Find out how much you can expect to receive.
Pension Credit, UK, DWP, State Pension, Winter Fuel Payments
London: The Department for Work and Pensions (DWP) is increasing various pension and benefit rates by 1.7% in 2025. This change aligns with the consumer inflation rate from September 2024.
Specifically, the Standard Minimum Guarantee for Pension Credit will see a 4.1% increase, reflecting the rise in Average Weekly Earnings from May to July 2024.
Other benefits, including the basic and new State Pension rates, as well as benefits for widows and widowers, will also be adjusted. This includes Universal Credit and Personal Independence Payments (PIP).
This annual adjustment, known as uprating, affects all disability benefits and Carer’s Allowance too.
Pension Credit is designed to assist those over State Pension age who have a low income, helping with living costs and housing expenses like ground rent.
However, it’s concerning that around 760,000 eligible pensioner households didn’t claim Pension Credit between April 2022 and March 2023. This means many missed out on about £1,900 a year.
Claiming is especially important this year since Pension Credit is the key to accessing Winter Fuel Payments.
There’s still time to apply and potentially backdate Winter Fuel Payments, along with regular weekly support.
Starting in April 2025, here’s what the new rates will look like:
- The Standard Minimum Guarantee for a single person will rise from £218.15 to £227.10, an increase of £8.95 per week.
- For couples, it will go from £332.95 to £346.60, which is a £13.65 increase.
- The Full Basic State Pension will increase from £169.50 to £176.45, adding £6.95.
- The Full New State Pension will go up from £221.20 to £230.25, a £9.05 uplift.