The Department for Work and Pensions (DWP) has announced a potential financial boost worth up to £18,000 for eligible pensioners over the age of 68. This extra payment could make a huge difference for retirees struggling with rising living costs, and many older people may not even realise they qualify. In this guide, we’ll break down who is eligible, how the payment works, and the steps you need to take to claim it.
What is the £18,000 boost?
The £18,000 figure refers to the potential total financial support available over a period of time through unclaimed Pension Credit and related DWP benefits. Pension Credit is a top-up benefit designed to help low-income pensioners, ensuring they have a guaranteed minimum level of income in retirement.
For many pensioners, claiming Pension Credit also unlocks additional benefits such as Housing Benefit, Council Tax Reduction, free NHS dental care, help with heating costs, and even a free TV licence for those over 75. When combined over several years, these extras can amount to thousands of pounds — hence the potential £18,000 figure.
Who can get it?
The boost is aimed at pensioners aged 68 and above who meet certain income and savings criteria. You could qualify if:
- You are over the State Pension age (currently 66) and in this case specifically aged 68 or older.
- Your weekly income is below £218.15 if you’re single or £332.95 if you’re in a couple.
- You have limited savings (generally less than £10,000; above this, it may affect how much you get).
Even if your income is slightly above the threshold, you may still be eligible if you have certain disabilities, are a carer, or have housing costs.
How is the £18,000 calculated?
The total £18,000 figure is based on the average yearly value of Pension Credit and additional support over a typical five-year claim period.
- Pension Credit average top-up: Around £3,900 a year.
- Extra benefits value: Housing Benefit, Council Tax discounts, energy support, NHS cost exemptions and free TV licence — potentially worth another £600–£800 a year.
- Over five years, this can reach £18,000 or more depending on your exact circumstances.
Many pensioners miss out simply because they do not apply, assuming they are not eligible. This is why the DWP is urging older people to check as soon as possible.
Why so many pensioners miss out
Figures show that around 850,000 eligible pensioner households in the UK are not claiming Pension Credit. Common reasons include:
- Thinking savings or a small private pension disqualifies them.
- Not realising Pension Credit can be claimed even if you own your home.
- Feeling the process will be complicated or intrusive.
In reality, the claim process is straightforward, and the benefit is often a gateway to significant extra help.
How to check if you qualify
The fastest way to check is by using the online Pension Credit calculator on the official GOV.UK website. You’ll need details of:
- Your income (including pensions, savings interest, and any other benefits).
- Your savings and investments.
- Your housing costs (if applicable).
You can also call the Pension Credit claim line and speak directly to a DWP adviser who can assess your eligibility over the phone.
How to apply
Applying for Pension Credit — and unlocking the potential £18,000 boost — can be done in three main ways:
- Online via the GOV.UK Pension Credit service.
- By phone through the Pension Credit claim line.
- By post using a paper application form.
You’ll need your National Insurance number, bank account details, and information about your income, savings, and housing costs. The process usually takes less than 30 minutes, and decisions can be made quickly.
Backdating your claim
One of the biggest advantages is that Pension Credit claims can be backdated up to three months if you were eligible during that period. This means you could get an immediate lump-sum payment in addition to your ongoing weekly support.
If you’ve been struggling with bills or rent, this back payment can be a lifeline.
Other benefits you might get
Once you qualify for Pension Credit, you may also automatically be eligible for:
- Free TV licence if you’re over 75.
- Cold Weather Payment during severe winter conditions.
- Warm Home Discount on your energy bills.
- Free NHS dental treatment and help with prescription costs.
- Council Tax Reduction (sometimes up to 100%).
These extra benefits can make a significant difference to your monthly budget.
Why acting quickly matters
With the cost of living continuing to put pressure on older households, waiting to claim could mean missing out on valuable financial support. Every month you delay is money lost — and if you’ve been eligible for some time, backdating can only go so far.
The DWP has also been running awareness campaigns to encourage pensioners to check their eligibility, but it is still each person’s responsibility to apply.
Final thoughts
The £18,000 boost is not a one-off cheque but a combination of extra income and benefits that can transform the financial security of older pensioners. If you’re over 68 and living on a low income, checking your eligibility is one of the most important financial steps you can take this year.
Even if you think you might not qualify, the rules can be more generous than expected, and applying is quick, free, and could put thousands back into your pocket.