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Certain benefits can unlock a wealth of freebies and discounts
UK state pensioners can kick off their New Year savings and potentially increase their income by as much as £14,139 from this month, thanks to a dozen freebies and discounts offered by the government.
Chancellor Rachel Reeves has announced a 4.8 per cent increase to the State Pension starting from April, which could see some pensioners pocketing an additional £575 annually by 2026. However, some may be eligible to claim further financial support before these new rates come into effect.
At present, the full basic State Pension stands at £176.45 per week (or £9,175.40 per year), while the full new State Pension is valued at £230.25 per week (or £11,973 per year). These amounts are only applicable if you’re entitled to the full rate. If you receive less than these figures, it’s likely due to insufficient qualifying National Insurance years.
Therefore, if you’re exploring ways to enhance your income in 2026 ahead of the State Pension increase in April, it’s worth investigating your eligibility for Pension Credit. This benefit from the Department for Work and Pensions ( DWP ) could unlock a host of freebies and discounts averaging around £14,139.20, reports the Express.
Pension Credit offers extra financial assistance to pensioners on a low income to help with living expenses. According to the DWP, it’s worth over £3,900 per year.
Moreover, it provides access to a range of other financial aids, including the Winter Fuel Payment, Council Tax discount, and assistance with heating bills. Therefore, it’s certainly worthwhile checking if you qualify.
Sarah Pennells, consumer finance specialist at Royal London, explained: “Pension Credit is a valuable benefit because it is a ‘gateway’ benefit. That means, if you’re able to claim it, you may also be able to get help with housing costs (through Council Tax discount and Housing Benefit or Support for Mortgage Interest).”
She continued: “You’re also eligible for a free TV licence if you’re aged 75 or over and you may be able to get help with NHS dental treatment, prescriptions and transport costs.”
Ms Pennells added: “If you’re entitled to these benefits, the state help you get could be very valuable and that could make a real difference to your finances. However, hundreds of thousands of people are missing out on Pension Credit. Our research showed that two in five people over State Pension age hadn’t checked to see if they were entitled to Pension Credit.”
Therefore, if you require additional financial assistance this month, it’s advisable to check whether you qualify for Pension Credit – alongside another DWP benefit – as this could unlock support totalling up to £14,139.20. Below are 12 freebies and discounts available to pensioners this January.
Pension Credit
Pension Credit supplements your weekly income to £227.10 for single claimants or £346.60 for couples. To be eligible, you must reside in England, Scotland or Wales and have reached State Pension age.
According to the DWP, Pension Credit is worth over £3,900 annually on average. Being eligible for Pension Credit opens the door to a host of other benefits and discounts, including:
Housing Benefit
If you’re renting your home and receive the Guarantee element of Pension Credit, you qualify for the maximum Housing Benefit from your local council. While there’s no fixed amount, Martin Lewis ‘ MSE suggests you could receive around £1,000 per year, or potentially cover your entire rent.
TV Licence
Pension Credit claimants aged 75 and over can enjoy a £174.50 discount on their TV Licence fee, effectively reducing it to zero.
Warm Home Discount
The DWP’s Warm Home Discount scheme is another perk for those with Pension Credit, offering a £150 reduction on your electricity bill. This discount will be automatically applied by your electricity supplier by 31 March 2026.
Council Tax discount
Council Tax discounts are also available for Pension Credit recipients. The exact amount varies depending on your local council, but it could range from approximately £300 for a 25 per cent reduction on a typical Band D bill, up to around £1,600 for a full 100 per cent discount.
Winter Fuel Payment
Pension Credit claimants are still eligible for the Winter Fuel Payment, worth up to £300. Most qualifying pensioners should have received this payment automatically in November or December, though some may receive it slightly later in January.
The DWP has advised that if you haven’t received a letter about the payment, or the money hasn’t been deposited into your account by 28 January 2026, you should get in touch with the Winter Fuel Payment Centre.
Eligible individuals will receive either £200 if they were born between 22 September 1945 and 21 September 1959, or £300 if they were born before 22 September 1945.
Free NHS Prescriptions
Claiming Pension Credit also grants you access to free NHS prescriptions, which are typically priced at £9.90 per item in England.
Eye care and dental care
If you’re receiving any part of the Guarantee element of Pension Credit, you’re entitled to assistance with NHS eye care, including a voucher for glasses or contact lenses. As per Martin Lewis’ MSE, this could be valued up to £215, depending on your prescription.
Pensioners who qualify for the Guarantee element of Pension Credit can also avail of free NHS dental treatment, ranging from a simple check-up to full dentures. According to Martin Lewis’ MSE, this could equate to up to £1,000 worth of free treatment annually.
Cold Weather Payment
Should the temperature where you reside plummet to 0C or below for seven consecutive days, you’ll be eligible for a Cold Weather Payment of £25. This is automatically granted if you’re on an eligible benefit such as Pension Credit, Income Support or Universal Credit.
Royal Mail redirection service
Pension Credit claimants are also entitled to a discount on the Royal Mail redirection service when moving house. The service usually costs £84, but you’ll only have to pay £60 – resulting in a saving of £24.
How to claim Pension Credit
You can kick off your Pension Credit application up to four months before you hit State Pension age – currently 66 for both men and women – and any time after that. But remember, your application can only be backdated by three months. You can apply online via GOV.UK or give the Pension Credit claim line a ring on 0800 99 1234.
Attendance Allowance
Attendance Allowance is there to help with extra costs if you have a disability severe enough that you need someone to help look after you. It’s worth £73.90 per week for the lower rate or £110.40 per week for the higher rate.
If you have a severe disability which means you require regular assistance day and night, you could claim the higher amount. There are a total of 56 categories of conditions which could make you eligible. If you get the higher rate this could be worth up to £5,740.80 per year.
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