State pensioners on a low income and living together can get up to £346 per week as of yesterday, Monday April 7, as new payment rates take effect.

The government has increased the minimum guarantee for Pension Credit by 4.1%, in line with the annual increase in the Average Weekly Earnings (AWE) index for May to July 2024, giving claimants a welcome cash boost from this month. The uprating to Pension Credit comes alongside increases to the new and basic State Pension rates, which have also gone up by 4.1%. Pension Credit provides “a lifeline” in retirement to pensioners on low incomes, as it unlocks access to a wealth of additional financial support, including help with housing costs, Council Tax and the Winter Fuel Payment.

The benefit is issued by the Department for Work and Pensions (DWP) and is worth up to £4,300 per year. It is available to state pensioners in England, Scotland or Wales on a low income to help with living costs.

You can claim Pension Credit individually and as a couple, but if you have a partner you must include them on your application and you must both have reached State Pension age to be eligible. A partner is considered to be a husband, wife or civil partner if you live with them, or someone you live with as a couple, without being married or in a civil partnership.

As of April 7, the weekly payment rate for couples has increased from £332.95 to £346.60, while for single pensioners the rate has increased from £218.15 to £227.10. It means that those on the joint rate will get an extra £31.65 per week, while pensioners on the single rate will get an extra £8.95 per week.

Over the course of a year, couples with a joint weekly income will be up to £1,645.80 better off per year and single pensioners will get up to £465.40 more annually.

The DWP said: “The majority of the new rates will apply from Monday 7 April 2025. Those in receipt of the State Pension and other uprated benefits will see an increase in their next payments following Monday 7 April.

“The minimum guarantee for Pension Credit – the minimum amount that someone on Pension Credit will receive – is also set to increase by 4.1% from 7 April. For single pensioners it will increase from £218.15 to £227.10. For couples it will increase from £332.95 to £346.60.”

Applications for Pension Credit can be made online via the government website and you can start your application up to four months before you reach State Pension age.

You can apply any time after you reach State Pension age but your application can only be backdated by three months, meaning you can get up to three months of Pension Credit in your first payment if you were eligible during that time.