Pensioners Born Before 1959 Set to Receive £4,152 Extra in 2025 – Are You Eligible?

In a significant financial boost for older pensioners, the Department for Work and Pensions (DWP) has announced an increase in both Pension Credit and State Pension rates beginning in 2025. These updates are expected to benefit hundreds of thousands of retirees, especially those born before 1959, with some eligible to receive up to £4,152 more annually on top of their regular State Pension.

This change comes as part of the UK government’s ongoing effort to support low-income pensioner households, especially as inflation continues to impact living expenses like food, energy, and housing.

Despite the positive changes, a staggering number of pensioners are still missing out simply because they haven’t claimed what they’re entitled to. Here’s everything you need to know to check if you’re eligible and how much extra income you could be receiving.

What Is Pension Credit and Why Does It Matter?

Pension Credit is a means-tested benefit offered by the UK government for people over State Pension age who are on a low income. It’s designed to top up weekly income, helping cover essentials like food, utility bills, and even housing costs such as ground rent or service charges.

It’s separate from the State Pension, meaning you can claim Pension Credit in addition to your regular pension if your income is below a certain threshold. Despite being a key support mechanism, it remains one of the most underclaimed benefits in the country.

Government figures estimate that up to 760,000 pensioner households eligible for Pension Credit did not claim it between April 2022 and March 2023—leaving thousands of pounds unclaimed.

What Are the New Pension Credit Rates in 2025?

From April 2025, the Standard Minimum Guarantee under Pension Credit is increasing for both single claimants and couples.

Here’s what the updated rates look like:

• Single Person

  • Previous weekly rate: £218.15
  • New weekly rate: £227.10
  • Increase: £8.95 per week
  • Annual boost: £465.40

• Couples

  • Previous weekly rate: £332.95
  • New weekly rate: £346.60
  • Increase: £13.65 per week
  • Annual boost: £709.80

Over the course of a full year, eligible pensioners may receive up to £4,152 extra when combining these increases with other benefits and additional support components like Housing Benefit, Council Tax Support, or Winter Fuel Payments.

What’s Happening with the State Pension in 2025?

In addition to Pension Credit, State Pension rates are also seeing an uplift:

• Full Basic State Pension

  • 2024 Rate: £169.50/week
  • 2025 Rate: £176.45/week
  • Increase: £6.95/week

• Full New State Pension (for those born after April 1951, but before April 6, 1959)

  • 2024 Rate: £221.20/week
  • 2025 Rate: £230.25/week
  • Increase: £9.05/week
  • Annual increase: £470.60

These updates apply automatically to those already receiving pensions, but they become especially meaningful when paired with Pension Credit, giving retirees a stronger safety net.

Read Also: Universal Credit and PIP Overhauls for 2025, DWP Announces Major Updates and Eligibility Criteria

Who Should Apply for Pension Credit?

You should consider applying for Pension Credit if:

• You’re over State Pension age
• You have a low weekly income
• You have savings and investments under £10,000 (you can still qualify with more, but the amount you receive may reduce)
• You’re struggling with housing or utility bills
• You live alone or with a partner and need financial assistance

Applying is free, and even if you’re unsure about your eligibility, it’s worth checking—many people assume they won’t qualify and miss out on thousands.

How to Apply for Pension Credit

Applying for Pension Credit is straightforward and can be done in several ways:

• Online at the official GOV.UK website
• By phone through the Pension Credit claim line
• By post using a downloadable form from GOV.UK
• Through a trusted representative, such as a family member or social worker

MUST READ: UK Households to Get £500 Cost of Living Support – Who Qualifies?

You’ll need information such as:

• National Insurance number
• Bank account details
• Details about your income, savings, and investments
• Information about your housing situation

Once approved, your payments can be backdated for up to three months, meaning you could receive a lump sum payment even if you’re applying late.

Why Now Is the Time to Apply

With the new rates kicking in and rising costs making everyday life more expensive, there’s never been a better time to check if you qualify. Even if you only receive a small amount of Pension Credit, it can open the door to other valuable benefits like:

• Free NHS dental treatment
• Cold Weather Payments
• Housing Benefit
• Council Tax reductions
• Free TV licence (for over-75s)

These added perks can further increase your total yearly savings by hundreds—or even thousands—of pounds.

FAQs

How much is the Pension Credit increase for a single pensioner in 2025?

The weekly amount rises from £218.15 to £227.10—an £8.95 increase, equating to £465.40 annually.

What’s the new State Pension amount in 2025 for those born before 1959?

The Full New State Pension rises from £221.20 to £230.25 a week, an annual boost of £470.60.

Can I claim Pension Credit if I already get a State Pension?

Yes. Pension Credit is an additional benefit for those on low incomes—it does not replace your pension.

Is Pension Credit taxable?

No. Pension Credit is a non-taxable benefit and will not impact your tax obligations.

How do I apply for Pension Credit?

You can apply online at GOV.UK, by phone, post, or through a representative. You’ll need personal, financial, and housing details.

Can Pension Credit be backdated?

Yes, it can be backdated for up to three months from the date you apply, provided you were eligible during that time.

What if I was eligible last year but didn’t claim?

You may have missed out on payments, but applying now ensures you don’t miss future increases or benefits tied to Pension Credit.

What else can Pension Credit help me with?

Beyond boosting your income, it may entitle you to other benefits such as help with housing, heating, dental care, and a free TV licence.

Click here to know more.