Thousands of pensioners across the UK may be missing out on benefits worth up to £5,740 a year, which, when combined with the full New State Pension of £11,973, could raise their annual income to about £17,713.
These benefits—Attendance Allowance (or Pension Age Disability Payment in Scotland) and Pension Credit—are designed to support older people facing long-term illness or low income.
Understanding these schemes and how to apply could make a major difference to your financial security in 2025.
Overview of the Two Key Benefits
| Benefit | Annual Value | Eligibility | Administered By |
|---|---|---|---|
| Attendance Allowance (AA) or Pension Age Disability Payment (PADP) | Up to £5,740 | Over State Pension age; have a disability or long-term illness | DWP (England/Wales/NI), Social Security Scotland (Scotland) |
| Pension Credit (PC) | Average £4,300 | Over State Pension age; low income below £227.10 (single) or £346.60 (couple) weekly | Department for Work and Pensions (DWP) |
Combining these benefits with the full New State Pension (£11,973 a year) can bring a pensioner’s total annual income close to £17,800.
Attendance Allowance and PADP Explained
Attendance Allowance (AA) is a tax-free, non-means-tested benefit that helps people over State Pension age with physical or mental health conditions, disabilities, or long-term illnesses.
- Weekly rates in 2025–26:
- Lower rate: £73.90
- Higher rate: £110.40
- Annual value:
- Up to £5,740.80 (paid every four weeks)
PADP is the Scottish version of Attendance Allowance, available to pensioners in Scotland, offering the same payment rates and criteria but administered by Social Security Scotland.
Eligibility is not based on savings or income. You can apply if you need help with daily activities like getting dressed, bathing, eating, or moving around, or if tasks take you longer, cause pain, or require supervision. It also applies to those with mental health conditions, sensory impairments, or learning difficulties.
Pension Credit and How It Works
Pension Credit is an income-related benefit that tops up your weekly income to a minimum guaranteed level:
- £227.10 per week for single pensioners
- £346.60 per week for couples
That equals roughly £11,805 or £18,023 annually, depending on your circumstances. On average, eligible pensioners receive around £4,300 per year.
If you’re receiving the New State Pension (£11,973 a year) but still have a low income, Pension Credit can bridge the gap and unlock other perks, including:
- Free TV licence (if aged 75+)
- Council Tax discount
- Help with NHS costs (dental, glasses, transport)
- Warm Home Discount for heating costs
- Housing Benefit or Support for Mortgage Interest
How to Claim These Benefits
Attendance Allowance / PADP
- Apply using a form from GOV.UK (for England, Wales, NI) or MYGOV.SCOT (for Scotland)
- Provide detailed information about your condition and how it affects daily life
- Payments are usually backdated to the date of your claim
Pension Credit
- Apply online using the Pension Credit calculator on GOV.UK
- Or call the Pension Credit helpline on 0800 99 1234 (Mon–Fri, 8am–6pm)
- You’ll need details about your income, savings, and National Insurance number
It’s worth noting that over 700,000 pensioners are thought to be missing out on Pension Credit despite being eligible.
Why These Benefits Matter
With rising living costs, these payments provide crucial financial stability for older people. They are tax-free, do not affect other benefits, and can help older people live independently for longer.
Claiming even £1 of Pension Credit can open doors to thousands in additional support, making it one of the most valuable benefits for retirees.
If you are over State Pension age and facing financial challenges or long-term health issues, claiming Attendance Allowance (or PADP) and Pension Credit could boost your yearly income to nearly £17,800.
These benefits are designed to support dignity and security in retirement—so checking your eligibility and applying today could transform your financial future.
FAQs
Is Attendance Allowance means-tested?
No, it is not based on income or savings and is completely tax-free.
Can I get both Attendance Allowance and Pension Credit?
Yes, you can receive both benefits simultaneously if you meet the eligibility criteria.
Do I need a carer to qualify for Attendance Allowance?
No, you can apply even if no one is currently helping you—eligibility depends on your need for care or supervision.
