With inflation remaining high and the cost of living stretching retirement income thin, many older people across the UK are missing out on thousands of pounds in unclaimed benefits.
The Department for Work and Pensions (DWP) has confirmed that two financial aids—Pension Credit and Attendance Allowance—could provide a combined annual income boost of up to £10,040 for eligible pensioners.
1. Pension Credit – A Lifeline for Low-Income Pensioners
Pension Credit is a means-tested benefit designed to top up the income of retirees over State Pension age who are living on a low income. The government estimates that more than 700,000 people who qualify for Pension Credit are not claiming it.
Key Details:
- Guarantee Credit tops up weekly income to at least:
- £227.10 for single pensioners
- £346.60 for couples
- On average, it’s worth around £4,300 per year.
- It also provides access to other support, such as:
- Free TV licence (if over 75)
- Help with council tax and heating bills
- NHS dental treatment and glasses
Eligibility criteria include:
- Being over State Pension age
- Having income below the threshold
- Some savings are allowed without affecting the award
Important: Even a small Pension Credit award can act as a gateway to these extra benefits.
2. Attendance Allowance – Help for Health-Related Needs
Attendance Allowance is a non-means-tested, tax-free benefit paid to pensioners with a long-term illness or disability that affects their daily living.
Key Details:
- Paid at two rates:
- £73.90 per week (lower rate) if help is needed during the day or night
- £110.40 per week (higher rate) if help is needed both day and night or for terminal illness
- Worth up to £441.60 per month, or £5,740.80 per year
- Not affected by income, savings, or National Insurance contributions
This benefit is underclaimed by over one million pensioners, many of whom mistakenly believe they won’t qualify because they don’t have a formal carer or diagnosis.
Combined Income Boost – Up to £10,040 Annually
When combined, Pension Credit and Attendance Allowance could boost a pensioner’s income by over £10,000 a year, providing essential support in covering everyday costs, health-related expenses, and energy bills.
Combined Potential Support Table:
| Benefit | Weekly Amount | Annual Value |
|---|---|---|
| Pension Credit (avg.) | ~£82.69 | £4,300 |
| Attendance Allowance | Up to £110.40 | £5,740.80 |
| Total Potential Gain | — | £10,040.80 |
Many pensioners are unknowingly missing out on life-changing financial support. If you or a loved one is over State Pension age and struggling financially or living with a health condition, it’s worth checking your eligibility for Pension Credit and Attendance Allowance.
These benefits are not automatically paid—they must be claimed. With more than £10,000 a year potentially at stake, it’s a step worth taking to enjoy a more secure and dignified retirement.
FAQs
Can I claim both Pension Credit and Attendance Allowance at the same time?
Yes. You can claim both benefits, and Attendance Allowance is not counted as income when applying for Pension Credit.
Do I need a carer to qualify for Attendance Allowance?
No. You can qualify even if you don’t have a carer, as long as your condition affects your daily life.
How do I apply for these benefits?
You can apply for Pension Credit and Attendance Allowance via the DWP’s official helplines or website. Paper forms are also available on request.