Last Updated: March 3, 2026
You may not be aware that you could be entitled to claim Pension Credit. This is a means-tested weekly benefit that boosts your weekly income once you’ve reached State Pension age. Pension Credit is made up of Guarantee Credit and Savings Credit, both of which play a role in how you pay for care home fees.
Guarantee Credit
To qualify for Guarantee Credit, you must be at State Pension age. This weekly payment is calculated by subtracting your total income from your Appropriate Minimum Guarantee.
Your total income includes your State Pension, occupational and private pensions, Social Security benefits, and assumed income from savings and investments (often called deemed income). Your deemed income is £1 for every £500 you have over the assumed figure of £10,000.
For the 2026/27 financial year, the Appropriate Minimum Guarantee is:
- Single person: £241.30 per week.
- Couple: £367.65 per week.
If you are severely disabled, a caregiver receiving Carer’s Allowance, or have certain housing costs like ground rent or service charges, you may receive a “premium” or “addition” that increases these amounts.
Savings Credit
You may receive Savings Credit if you reached State Pension age before 6th April 2016 and saved money for retirement, such as a workplace pension or personal pension.
For 2026/27, the thresholds are £193.10 for a single person and £306.75 for a couple. Eligible people receive 60p for every £1 of income above these thresholds, capped at a maximum of £19.10 (single) or £21.40 (couple).
Other Benefits and Local Authority Support
If you receive Guarantee Credit, you can access “passported” support, including:
- NHS Dental Care and assistance with travel to hospital appointments.
- Housing Benefit and a Council Tax Reduction (potentially covering costs in full).
- Winter Fuel Payment and Cold Weather Payment (subject to 2026 eligibility).
If you only receive Savings Credit, you may still qualify for a Council Tax reduction, provided you have less than £16,000 in savings and investments. Contact your local authority for a full financial assessment.
2026/27 Pension Credit & Care Funding Comparison
| Key Funding Figures (2026/27) | Single Person | Couple | Strategic Impact |
|---|---|---|---|
| Standard Minimum Guarantee | £238.00 / wk | £363.25 / wk | Increased by 4.8% (Triple Lock) |
| Savings Credit (Maximum) | £17.96 / wk | £20.10 / wk | For those who reached SP age pre-2016 |
| Personal Expenses Allowance (PEA) | £31.80 / wk | N/A | Protected income for personal use |
| Savings Credit Disregard | Up to £7.30 / wk | Up to £11.00 / wk | Extra income ignored by the council |
| Capital Limits (England) | £14,250 (Lower) / £23,250 (Upper) | Thresholds frozen for 2026/27 | |
Expert Insight: The ‘Savings Credit Disregard’
Why the Disregard Matters
The Savings Credit Disregard is a vital protection for those who have been prudent. While most of your total income is typically used to contribute toward care home fees, the local authority is legally required to ignore (disregard) a portion of your Savings Credit award. For the 2026/27 year, this means you can keep up to £7.30 per week (or £11.00 for couples) on top of your £31.80 Personal Expenses Allowance (PEA). Without this disregard, individuals with modest private pensions would be left with the same amount as those with no savings at all, effectively penalising their retirement planning.
Can you claim Pension Credit in a care home?
If you move into a care home, your eligibility is initially calculated as if you were living in your own home. The first £10,000 of your savings is ignored.
However, your circumstances change if you become a permanent resident. Couples are typically treated as two single people for Pension Credit purposes. If your partner remains at home, you must each claim Pension Credit independently.
When a local authority completes a means test, they must ensure you are left with a Personal Expenses Allowance (PEA). For 2026/27, the PEA in England is £31.80 per week. If you receive Savings Credit, they should also apply a savings disregard of up to £7.30 per week (£11.00 for couples), allowing you to keep a small portion of your private income.
Frequently Asked Questions (2026 Update)
What happens to my Pension Credit if I go into hospital? If you have a temporary stay in hospital, your Pension Credit usually continues. However, if you are a resident in a care home, your “passported” benefits like Attendance Allowance stop after 28 days, which may require a Mandatory Reconsideration of your care fee contribution.
Can I give money away to qualify for Pension Credit? If the DWP or local council believes you have gifted money to avoid care fees or qualify for benefits, they may assess you as having “notional capital.” This is known as deprivation of assets.
How and when to claim Pension Credit
If you have already claimed your State Pension and there are no young people involved in the claim, apply online. Otherwise, call the Pension Credit claim line on 0800 99 1234.
Key Facts for 2026:
- Timing: Apply up to four months before reaching State Pension age.
- Backdating: Claims can be backdated by up to three months.
- Information required: You will need your National Insurance number, bank details, and records of all savings and investments.
If your circumstances change, such as moving house or a change in your total income, you must report it to the Pension Service immediately to avoid overpayments.
Note: We have verified the official 2026/27 rates from the DWP and the Department of Health and Social Care (DHSC).
