Answers · UK 2025/26

What is the Savings Credit element of Pension Credit?

Savings Credit rewards people who saved for retirement above the basic State Pension level. It is only available to those who reached State Pension Age before 6 April 2016. The maximum award is £17.01 per week (single) or £19.04 per week (couple). It can be paid alongside Guarantee Credit or alone if income is above the Guarantee Credit level.

Last updated: 10 June 2026Last reviewed: 10 June 2026How we verify

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The Savings Credit was introduced in 2003 to reward pensioners who had made some provision for their own retirement -- for example, through a workplace pension, personal pension, or savings -- so that they were better off than those who had done nothing beyond the basic State Pension. It is calculated as a percentage (60%) of the amount by which your qualifying income exceeds the Savings Credit threshold (approximately £189.44 per week for singles and £301.19 for couples in 2026/27 -- check the Pension Service for the exact figures). The maximum Savings Credit is £17.01 per week (single) or £19.04 per week (couple). As income rises above the Guarantee Credit level, the Savings Credit is tapered away at 40 pence per pound of excess income. Savings Credit is transitional: it can only be claimed by people who reached State Pension Age before 6 April 2016. Since the new State Pension was introduced on that date (replacing the Basic State Pension and the Additional State Pension/SERPS), all new claimants after that date do not qualify for the Savings Credit. This means Savings Credit recipients are a shrinking group. For existing recipients, the Savings Credit remains in payment and is uprated each April. It can be paid on top of the Guarantee Credit (for those with income below the Guarantee Credit level, both elements may apply) or as a standalone payment (for those whose income is above the Guarantee Credit minimum but below the Savings Credit taper-out point). Savings Credit is claimed through the Pension Service alongside the main Pension Credit application on 0800 99 1234. It also triggers entitlement to the same "passported" benefits as Guarantee Credit (Council Tax Reduction, NHS dental, etc.).